State Bank of Mysore was founded in 1913 and was initially known as Bank of Mysore Ltd. It operated under the Govt. of Mysore. The Bank became an associate of State Bank of India and a part of the State Bank Group in 1960. It currently has a branch network of 1,002 branches with 9 extension counters across India, offering wide portfolio of services to the customers.
State Bank of Mysore offers car loans to customers for financing the purchase of new cars, Multi Utility Vehicles (MUV), Jeeps and SUVs. The car loan scheme offers unique advantages to car loan borrowers, such as a 15% Loan margin, long repayment period with maximum 84 EMIs, additional insurance cover for the vehicle, no prepayment/ foreclosure charge, etc. This makes it a well sought after car loan option by borrowers.
State Bank of Mysore Car Loan Eligibility Criteria
This loan is available to :
- Salaried employees of State or Central Governments, Public Sector Undertakings with net annual income of minimum Rs.3.00 lacs and above.
- Others including pensioners, have to have a minimum annual income of Rs.4 lacs.
- Self-employed and professionals with gross taxable income of Rs.4 lacs as per ITR can apply.
- Agriculturists (along with co-applicant, if any) with minimum annual income of Rs.4.00 lacs can apply.
Factors Affecting State Bank of Mysore Car Loan Eligibility
- The debt-to-income ratio plays an important role in determining the eligibility quotient of an applicant. State Bank of Mysore analyses the net worth of an individual by comparing his/her income against the debt owed by him/her. This assists the bank in evaluating your repayment capacity and creditworthiness.
- An applicant’s credit history and CIBIL score gives the Bank insight into their creditworthiness. This reflects whether an individual is dependable in terms of repayment of credit due and has not defaulted on any previous loans. If all payments are made on time, you have nothing to worry, since your credit/ CIBIL score will be high and the Bank’s decision will be in favour of your car loan application.
- The loan margin or downpayment that you are willing to make and the loan amount you require affects your car loan eligibility. If the applicant intends to pay a large portion of the overall value of the car as downpayment, this alternately reduces the loan amount to be availed from the Bank. This not just reduces the burden of debt incurred by you, but also assures the Bank of your financial reliability.
- A shorter loan tenure is often a sure-fire way of getting a car loan approval. This is because a shorter term means quicker payoff of the loan and hence, lesser default risk for the Bank.
- Age of the applicant is another determinant of the eligibility and successful approval of a car loan. Every bank sets a minimum and maximum age limit for individuals who can avail a car loan from them. However, even if you fall within this age limit, it is not necessary that your car loan will be approved. This is applicable mainly in the case of applicants who fall within the higher age limit since the risks involved are higher. Age criteria is another important matter even though age limits are kept to determine loan eligibility set for car loan applicants. Applicants who fall close to the maximum age limit by the time of loan maturity, have lower chances of getting their loan approved. Nonetheless, if older applicants go for a short loan tenure, or have co-applicants who are younger and fall within the high income group, chances of the loan being approved is high.
How to Increase your State Bank of Mysore Car Loan Eligibility
State Bank of Mysore has set a clear framework for the car loan eligibility and only those who meet these conditions get a car loan approval from the Bank. In order to increase your eligibility and chances of negotiating a favourable outcome, there are specific factors to be looked into. Some of these determining factors are:
- Availability of credit cards: Those who have a credit card issued by the Bank from where they wish to avail a car loan, have the process simplified since they already have the income records and credit history. If the card has been used for the 1-2 years and you have recent transaction statements, the Bank will evaluate that before processing your loan request. The probability of getting a higher loan amount or better interest rate, is high for an existing credit card holder of the Bank. A premium cardholder can even get 10% more car loan finance than a non-card holder.
- Ex-servicemen with high rate of income will get a car loan quickly.
- If you have a fixed deposit in the Bank issuing the car loan, the loan process will be easier and hassle-free. The funds in the fixed deposit can act as a collateral in case of defaulted payments to the car loans and the bank is assured of repayment. The amount of fixed deposit available is important, as compared to the loan amount applied for.
- CIBIL/Credit Score plays an important role in the Bank’s decision making process and in order to get a car loan approval, you need to have a high credit score. Hence, it is crucial that you pay all your dues on time and clear any pending credit, if any.
- Review all accounts in which you are a co-obligor or co-signatory. Since you are considered equally liable to the payments and transactions made through these accounts, any defaults can reflect negatively on your credit score.
- Having a reliable guarantor can increase your chances of a car loan approval.
- If you pledge a collateral or security in the bank in exchange of the car loan, the chances of your car loan being approved by the Bank is high.
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State Bank of Mysore Car Loan Eligibility Calculator
You can ensure your eligibility for a State Bank of Mysore car loan in an instant through the online car loan eligibility calculator tool. This method saves time and effort and is highly accurate. this tool is uncomplicated and hassle-free, and above all, available free of cost. You can use the car loan eligibility calculator by following a few simple steps:
- Enter the information requested by the tool such as your age, income, model of the car of your choice, loan amount required, loan term, etc. as accurately as possible.
- Once you have entered the required information click on the “calculate” tab.
- You will be redirected to the results page, wherein your query will be answered, i.e, whether or not you are eligible for the car loan/ loan amount/ loan tenure, etc. from the Bank.
- The tool will also project the loan amount and tenure that you are eligible for.