State Bank of Travancore Car Loan Eligibility Overview
State Bank of Travancore is a leading public sector bank in India,that was founded in 1945. It became an Associate of State Bank of India and part of the State Bank Group, through the SBI subsidiary Banks Act of 1959. State Bank of Travancore has its headquarters in Thiruvananthapuram, Kerala.
The Bank offers unique and convenient car loans to its customers who wish to purchase new cars, SUVs or MUVs. The car loan scheme offers special benefits such as a quick processing time, comparatively low interest rates, high loan terms, lower margins, and much more. A customer can avail a car loan either individually or jointly and the car can be registered in the name of any one of the borrowers.
State Bank of Travancore Car Loan Eligibility Criteria
- Salaried individuals or those who earn a regular income are eligible to apply for the SBT car loan of they have at least 2 years’ experience in their job.
- Any individual who is an employee of the Government (State/ Central), Private sector companies, Public Sector companies, Corporations, Banks or Insurance Companies are eligible to apply.
- Pensioners can also apply for a car loan from State Bank of Travancore.
- If the applicant is a Commissioned Officer in the defence force/service, he/she can apply for a car loan provided that he/she has at least 2 years’ experience in the service.
- Self-employed, Professionals, proprietary/ partnership firms, Businessmen and others who are income tax assessees for at least 2 years, are considered eligible to apply for the loan.
Factors affecting State Bank of Travancore Car Loan Eligibility
- SBT will evaluate an applicant’s credit score before processing his/her loan application. This step helps the bank to analyze the creditworthiness of an individual. The credit score reflects the individual's credit history such as financial records including payment history, current and closed credit accounts, active duration of credit, etc. A high credit score paves way for the smooth processing of your car loan approval.
- Income: Income is another crucial factor in determining car loan eligibility and creditworthiness of an applicant. The debt-to-income ratio analysis helps the Bank to understand the income owned by the individual against his/her debt burden, in a year. The debt-to-income ratio shows the net worth of the applicant and his/her repayment capability.
- Downpayment and Loan amount: If the borrower pays a significant amount as downpayment for the car, it not just reduces the burden of debt that he’ll have to shoulder by availing a car loan, but also helps to portray reliability and reduced risk to the issuing Bank. With a greater loan margin and reduced loan amount, the chances of getting the car loan approved by State Bank of Travancore.
- Age: A younger applicant has higher chances of getting his/her loan application approved. Those who fall closer to the upper age limit has lesser chances of loan approval since, from the Bank’s point of view, there are more risks involved in terms of income earned, outflows, etc. Applicant whose age is within the age criteria set by the bank, can avail the car loan from SBT. Older applicants can improve their eligibility for a car loan from SBT if they have a higher net worth, co-applicants with a stable source of income, shorter tenure of loan, etc.
- Loan Tenure: If the tenure of loan chosen by the applicant is short, this indicates a quicker repayment of loan. Since this is a low risk case, the Bank will view the application favourably.
How to increase State Bank of Travancore Car Loan Eligibility
- Pay all dues in time and do not default on any credit if you wish to be eligible for a car loan. All transactions, including defaults, cheque bounces, late payments, etc. reflects poorly on your credit score.
- Try to have secured loans than unsecured loans since unsecured loans such as credit cards, personal loans, etc. is can be considered as counter-productive pay-outs. It is better to have a robust combination of both secured and unsecured credit.
- Guarantor: Having a guarantor vouch for your car loan application can influence your car loan eligibility positively.
- Collateral/Security: By pledging a security or any form of collateral apart from the hypothecation of your vehicle, you can increase your car loan eligibility.
- Pay close attention to all transactions in your Joint accounts or accounts to which you are a guarantor for, since you are equally responsible for any defaults on credit repayment in these accounts.
State Bank of Travancore Car Loan Eligibility Calculator
Find out your eligibility for State Bank of Travancore car loan immediately, by using an online car loan eligibility calculator tool. No more waiting around for a Bank executive to get in touch with you or finding a bank branch closest to you to find out your car loan eligibility. This method is convenient and available at no additional cost. You can provide information such as: the car’s make and model, its on-road price, your age (date of birth), income, salaried/ self-employed, etc. that will help the tool to evaluate your eligibility. By clicking on the “calculate” tab, you can find out whether you fall within the eligibility criteria set by the Bank.