State Bank of Patiala Car Loan Eligibility Overview
State Bank of Patiala offers car loans accompanied by a host of benefits to its customers. Flexible loan tenures for up to 7 years, nominal processing fees, flexibility of converting floating interest rate to fixed interest rate free of charge, etc. are some of the highlights of the car loan scheme offered by State Bank of Patiala. Salaried applicants can avail a loan amount of up to 48 times their net monthly income and all those who avail a new car loan gets a free personal accident insurance cover as well.
State Bank of Patiala Car Loan Eligibility Criteria
Those who are eligible to apply for a SBP car loan are:
- Salaried Individuals
- All employees of State government, Central government or Semi govt. organizations.
- Employees of recognized profit making corporates and PSUs
- Individuals who work in reputed colleges like - Universities approved by Govt./ UGC/ AIBMS/ AICTE/ CMR etc., or Universities approved by Indian Medical Council,NEC accredited colleges, Deemed Universities, etc.
Factors Affecting State Bank of Patiala Car Loan Eligibility
Once you have submitted your car loan application, the Bank goes through a detailed process of scrutinizing your credit history and several other factors in order to determine your creditworthiness. Some of these factors are as follows:
- Your CIBIL/ Credit Score: Your CIBIL score is one of the first things that a bank checks while processing your car loan application. This reflects all your transactions, financial liabilities, as well as your repayment capacity. If you credit history projects a negative credit score, then car loan application may be rejected. On the other hand, if your CIBIL score is high, the Bank will consider your car loan application favourably.
- Income: State Bank of Patiala, scrutinizes your bank statements and all your open accounts, in order to evaluate your income earned against your expenses such as payment of loans, receipts, etc. If your total outflow is over 55-60% of your monthly income, your loan applicant will not be considered favourably.
- Co-applicant: If you have a co-applicant, your eligibility quotient is high since, both of your income will be clubbed together to evaluate repayment capacity, This increases your net-worth and also increases the assurance of repayment since the co-applicant is equally liable to repay the loan. Since the risk is low and security is high, State Bank of Patiala will consider your loan application in your favour. Parents, children, spouse, siblings etc. can be a co-applicant.
- Loan Amount and Loan Margin: The loan amount applied for with the bank as well as the loan margin you are willing to pay, also affects your eligibility. From the Bank’s point of view, a higher downpayment made by the individual corresponds to a lower loan amount, which will be repaid faster. This reduces any risk involved or liabilities to the bank so such smaller loan amounts will be approved quickly.
- Age: Applicants who fall close to the upper age limit set by the bank have a smaller chance of getting a loan approval. This is because, the risk involved in lending to an older individual is higher - their income, dependants, health, etc might affect their repayment capacity. However, if these applicants have a higher net worth and opt for a shorter loan tenure, their car loan application will be considered favourably.
How to Increase Your State Bank of Patiala Car Loan Eligibility
- In order to increase your networth, you can provide a guarantor, who has a good social standing. Family, friends or spouse can stand as a guarantor to your car loan application.
- Collateral/Security: In order to increase your eligibility and chances of getting a car loan application approved, you can pledge collateral or security with the bank, such as: KUP/ NSC/ LIC policies, bank fixed deposit, land and building deeds, gold, etc.
- Having a salary account or fixed deposit with State Bank of Patiala also increases your chances of availing a car loan from the bank.
- Review your CIBIL score and make sure that you have cleared all your dues. Your credit score plays a detrimental role in the bank’s decision making process.
- If you have a healthy combination of unsecured as well as secured credit/loans reflected in your credit history, the Bank considers this positively in determining your eligibility for the car loan.
- Make sure that all the transactions made in your Joint accounts or accounts in which you are a guarantor, do not have any defaults.
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State Bank of Patiala Car Loan Eligibility Calculator
Finding out your eligibility for a State Bank of Patiala car loan is now easier and quicker with the availability of the online car loan eligibility calculator tool. You can save time spent on contacting the Bank branches or its executives, since the online car loan eligibility calculator tool can be accessed anywhere, anytime. All you have to do is enter some relevant details based on which the tool will calculate your eligibility a State Bank of Patiala car loan, instantly! The information that you have to manually key-in are: age, income, type of employment, choice of car/model, etc. Click on “calculate” and access your result in seconds! The tool projects your car loan eligibility status, amount of car loan you are eligible for, tenure of loan, etc.