Thiruvananthapuram Car Loan

Interest Rate Offered by Top Lenders in Thiruvananthapuram

How to Fetch Low Interest Rates in Thiruvananthapuram

Some of the different ways by which you can avail a car loan in Thiruvananthapuram at a low rate of interest are mentioned below:

1. Keep a low debt-to-income ratio: Having a low debt-to-income ratio is vital when you wish to avail a car loan at a low rate of interest. All banks and NBFCs will check your debt-to-income ratio before providing a loan. It is better if you clear any existing Equated Monthly Instalments (EMIs) before opting for a car loan. The car loan would be rejected or provided at high interest rates in case you have a high debt-to-income ratio.
2. Compare: It is vital that you compare car loans provided by various lenders before choosing one. Certain lenders will provide car loans at lower interest rates when compared to others. Various third-party websites such as Bankbazaar.com can be used to compare car loans from various lenders. You will need to enter basic details before car loans can be compared. Various benefits and features of the car loan can also be compared online.
3. Maintain a good credit score: Maintaining a good credit score is vital when you apply for a car loan. The loan application will be rejected, or the interest rates will be high in case your credit score is bad. Having a good credit score will show lenders that you are financially stable and will be able to pay the loan back on time.
4. Negotiate with lenders: You can apply for a loan with your existing bank before applying for one from other lenders. In case you have a good relationship with the bank, they may provide a car loan with a low interest rate. You may also be able to negotiate the interest rate. The rate of interest of the car loan can be negotiated based on several factors such as the credit score, income status, and loan tenure.
5. Choose a shorter tenure: The interest rate will be high in case you opt for a longer repayment tenure. Therefore, you can opt for a shorter tenure for low interest rates. However, the EMIs will be higher for shorter tenures.
6. Pay a high down payment: The amount of loan that is provided will be less in case you make a high down payment. Lenders offer loans at low interest rates as well since a high down payment will provide the impression that you are financially stable.

Eligibility for Availing a Car Loan in Thiruvananthapuram

The eligibility criteria that must be met by salaried employees and self-employed individuals are different. Depending on the lender, the eligibility criteria may vary as well. The basic eligibility criteria that must be met when applying for a car loan are mentioned below:

1. Salaried employees, self-employed individuals, partnership firms, limited companies, and sole proprietorships can apply for a car loan.
2. You must be at least 21 years old at the time of submitting the application form.
3. In case you are a salaried employee, you cannot be more than 60 years when the loan matures.
4. In case you are a self-employed individual, you cannot be more than 65 years when the loan matures.
5. Salaried employees must have a minimum work experience of two years.
6. Self-employed individuals must have an operating business for at least 2 years.

You can check with the respective lender any other details before applying for the loan.

Documents Required

The documents that must be submitted will be different for salaried employees and self-employed individuals. The list of documents that must be submitted are mentioned below:

Salaried Employees

1. Identity Proof: Any of the below-mentioned documents can be submitted as proof of identity:
   1. Voter ID
   2. Driving License
   3. Aadhaar Card
   4. Permanent Account Number (PAN)
   5. Passport
2. Address Proof: Any of the below-mentioned documents can be submitted as proof of address:
   1. Telephone Bill
   2. Electricity Bill
   3. Life Insurance Policy
   4. Driving License
   5. Passport
   6. Aadhaar Card
   7. Ration Card
3. Income Proof: Form 16 and later salary slips must be submitted.
4. Bank statements for the last 6 months must be provided.

Self-employed Individuals

1. Identity Proof: Any of the below-mentioned documents must be submitted as proof of identity:
   1. Driving License
   2. Voter ID
   3. Passport
   4. Aadhaar Card
   5. PAN Card
2. Address Proof: Any of the below-mentioned documents must be submitted as proof of address:
   1. Sales Tax Certificate
   2. Life Insurance Policy
   3. Electricity Bill
   4. Telephone Bill
   5. Driving License
   6. Passport
   7. Aadhaar Card
   8. Ration Card
3. Income Proof: The latest Income Tax Returns (ITR), audited balance sheet, and profit and loss accounts must be submitted.
4. Bank statements for the last 6 months must be provided.

The lender will advise you in case they require any more documents.

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