Vijaya Bank Car Loan Eligibility Overview
Vijaya Bank offers attractive car loan schemes to its customers for the purpose of purchase of new cars as well as for purchase of used cars, which are 5 years old or less. The repayment period is flexible and as high as 84 months of repayment period. The Bank also offers a high loan quantum of up to 85% of the invoice value of new vehicle to borrowers. In certain cases 100% finance is offered to applicants who belong to the following categories:
- Salaried individuals who can submit a salary mandate provided by the employer allowing the salary to be remitted to Vijaya Bank. The EMI for the car loan can be deducted from this account.
- If an applicant offers the property secured to his/her existing home loan with the bank as mortgage to the car loan as continuing security.
Vijaya Bank Car Loan Eligibility Criteria
In order to be eligible for a Vijaya Bank Car Loan, you must meet the following prerequisites:
- Applicants who are not less than 21 years of age at the time of application and not more than 70 years of age at the time of loan maturity.
- Any individual who is a permanent employee of Public/Joint Sector Undertaking, State/Central Govt., Private Establishment or any other reputed organization.
- Pensioners who draw pension through an account in Vijaya Bank.
- Any Self-employed individual or Professional/Self Employed who has a reliable source of income.
Factors Affecting Vijaya Bank Car Loan Eligibility
- Vijaya Bank will check a prospective borrower’s CIBIL score and credit report before processing the loan application. This is because the credit score reflects the applicant's financial records such as your current and closed credit accounts, payment history and duration of using credit actively. With a low credit rating, the chances of a successful car loan approval from the Bank are slim. On the other hand, a high credit score is a sure-fire way of receiving a favourable response from the bank on your car loan application.
- Debt-to-Income Ratio: Banks undertake a debt-to-income ratio analysis in order to understand an applicant’s ability to repay the car loan amount, if approved. This analysis is done by comparing the income of an individual against his/her quantifiable cash outflows (e.g.: credit card bills, utility bills, other outflows, etc.).
- Percentage of Loan Margin: If the borrower pays a lumpsum amount as downpayment for the car, the loan quantum decreases, thereby reducing any risk involved in repayment. The Bank views this as a positive evaluation factor. Hence, larger the down payment, and smaller the loan amount, the more likelier it is that the car loan will be approved by Vijaya Bank.
- Age: Younger applicants have a better chance of getting a car loan approval than those who fall closer to the maximum age limit set by the bank.
- Those who opt for a shorter tenure for their car loan repayment, not just have to pay less in terms of interest, but also project lower risk and higher repayment capacity. Thus, the terms of loan approval might be more favorable to the applicant.
How to Increase your Vijaya Bank Car Loan Eligibility
- Improve your Credit History/ CIBIL Score by:
- making sure that you repay all credit regularly. Any delay in payments or defaulting on loans gives you a low credit score.
- Avoid having unsecured loans only. Having a combination of both secured credit and unsecured loans credit assists in creating a healthy credit report.
- Having a guarantor to vouch for your creditworthiness is an added bonus.
- Co-signed accounts and joint accounts also reflect on your credit history. So, ensure that these accounts are frequently reviewed for any defaults on credit due.
- Collateral/Security: placing a collateral or security (gold, fixed deposit, insurance, etc.) with the bank, for availing the car loan, can increase your Vijaya Bank Car Loan eligibility.
Vijaya Bank Car Loan Eligibility Calculator
You do not have to visit Vijaya Bank Bank branches or wait for the Bank’s executives to get in touch with you, in order to know whether you are eligible for a Vijaya Bank car loan. You can simply use the online car loan eligibility calculator tool to find out your eligibility. It is quicker and uncomplicated to use, and offers you instant results that will help you zero-in on your application process faster. All you have to do is put in information such as: make and model of the car you wish to purchase, the loan quantum, loan tenure, your personal details such as age, income, etc. and then click the “calculate” tab. The results page will show whether you are eligible or not.