I want to buy Maruti Ertiga in Dehradun(Uttarakhand). Presently i am living in bangalore with friends in a rented flat since Jan 2013. I am a salaried person(Monthly Gross: 28k ) and my Salary a/c is in HDFC Bank. I would like to know that am i eligible for car loan. and how much can i borrow …?
The criteria for car loan are as follows:
- It is important to have employment experience of at least 2 years and current job stability of minimum 1 year.
- Minimum annual Income should be Rs 1.5 Lac
- Maximum age of applicant at loan maturity: 60 Years.
Following are the minimum documents required for availing car loan:
a. Passport /voters ID card/PAN card
b. Proof of residence
c. Bank account statement for last 6 months
d. Latest salary slip showing all deductions
e. I.T. Returns/Form 16: 2 years for salaried employees
In general banks allow a loan up to 4 times of net annual salary or 48 times of net monthly income whichever is low (as per SBI norms). In terms of gross salary bank offers car loan up to 36 times of gross monthly income (Ex- UCO Bank). So you can borrow up to Rs 10.08 Lac based on your gross salary. The amount may vary with other banks depending on their norms. Up to 90% loan to value is allowed over the on road price of car. Some banks may even allow 100% loan depending on past record and excellent profile.
Car Loan eligibility differs based on the criteria set by the lender taking into account the borrower’s profile.
You can check with your respective bank if they have any additional requirements as policies may differ from one bank to another.
Factors Affecting Car Loan Eligibility?
Income levels: Higher the income better the chances for a higher loan amount
Income regularity: Regular income improves chances for loan approval
Kind of Car: New cars are more easily financed than used cars; a high-end model will be expensive which means the borrower has to be able to pay the required down payment.
Longer tenors will enhance repayment capacity
Click here to check your eligibility for a Car Loan.