The auto loan market has been booming in the past few years. It’s no surprise that car dealerships have suddenly become a lot more accessible than they once were. With comparison shopping at your fingertips and numerous online lenders to choose from, getting a car loan is easier than ever before. But, this change also means that getting a car loan isn’t as easy as it once was either. Getting a car loan eligibility can be tricky because of all the variables involved. Do you know what those are? Keep reading to find out!
What’s Required To Get A Car Loan?
Just like a home loan, to get a car loan, you’ll need to prove that you can repay the loan in full and on time. This means you’ll need a solid credit score and a reliable source of income. If you don’t have a good credit score, you may be able to apply for a car loan if you get pre-approval from a bank (for a higher interest rate). But, it’s best to avoid applying for a car loan if you don’t have a solid credit score.
How Much Can You Borrow?
The older you’re in debt, the more money you end up paying. This is why it’s important to keep your monthly payments as low as possible. If you don’t keep your payments as low as possible, you’ll end up paying a lot more over the life of your loan. That’s why it’s so important to know how much you can borrow and how much you can afford before applying for a car loan. Well, depending on various factors, lenders decide how much you can get for car loan.
Also Read: How To Get The Best Car Loan Interest Rate in 3 Easy Steps
Determine Car Loan Eligibility Based on Likely Outcome
Before you apply for a car loan, take a step back and look at the cost and benefits of owning and financing a new car. Owning a car can be a great decision — it will be yours, you can park it anywhere you like, and you won’t need to share public transportation with as many people. Plus, owning a car is a lot less expensive than financing one. So, which is better? Owning or financing? The decision rests upon you. What you should know is that owning a car isn’t for everyone. It’s important to consider which is better for you: owning or financing a car. There are benefits to both, so it’s important to know which one is better for you. Keep in mind, if you decide to finance a car, you’ll need to keep the payments current.
Ways To Avail Car Loan When You Have Bad Credit
If you have bad credit, you may be able to get a car loan provided you make a strong effort to improve your credit score. This can be done through creating a budget, getting rid of unnecessary accounts, and paying off any debt you have. By improving your credit score, you can easily avail of a car loan. Still, there are multiple lenders in the market who offer car loans at a low credit score but putting some serious condiutions. So, check before you apply for a car loan online. Do your research, look for deals, check policies, and everything before applying for one. Even though you have bad credit, you can get approved. Just keep in mind that you may end up paying a lot more in interest over the life of your loan.
Eligibility Criteria For Getting A Car Loan
| Particulars | Details |
| Minimum Age of the Applicant | 18 years |
| Maximum Age of the Applicant | 60 years for salaried applicants and 65 years for self-employed applicants |
| Minimum Annual Income | Rs.3 lakh |
| Car Model | Any approved car model |
| Type of Employment | Salaried or self-employed |
| Country or Place of Residence | India (rural/semi-urban/urban areas) |
| Duration of Stay in Current Residence | A minimum of 1 year |
Eligibility Criteria For Salaried Individuals
| Salaried Individuals | |
| Minimum Age | 21 years |
| Maximum Age | 70 years at the time of loan maturity |
| Minimum Annual Income | Rs.2.4 lakh |
| Employment Status | Should be in continuous employment for at least 1 year |
| Other Criteria | Should be able to produce Form 16 and latest salary slip to prove income eligibility |
| Who is Eligible? |
|
Eligibility Criteria For Self – Employed Individuals
| Self-Employed Individuals | |
| Minimum Age | 18 years |
| Maximum Age | 75 years at the time of loan maturity |
| Minimum Annual Income | Rs.1.8 lakh – Rs.2 lakh |
| Employment/Business Status | Should be in the same line of business for at least 3 years |
| Other Criteria | Should be able to produce latest Income Tax Returns to prove income eligibility |
Also Read: A Detailed Guideline for Getting the Best Car Loan
Conclusion
Getting a car loan is definitely a tricky process, especially if you have bad credit. To get a loan, it’s important to understand what you can expect and when you can expect it. The good news is that now more than ever, you can get a car loan. What’s more, many lenders are now offering car loans with low down payments and no cosigners. In fact, some lenders are even offering zero down payment loans – meaning you don’t even have to have a down payment.
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