The eligibility criteria for a Car Loan might vary from one lender to another. You need to choose the one that suits you the best. The financial branches of some automobile companies, like Tata, offer loans if you buy their cars. But, in case you plan to buy some other make, you’ll have to consider visiting all the leading banks around.
To make things easier, here is the eligibility criteria for a Car Loan:
Age: 18-75 years
Income: Above Rs 10,000 per month
Employment: Total work experience must be > 3 years and > 2 years in the current position/business/profession
Model of the car: Only the approved models are eligible for a loan
Other factors include your residential area and stability of your stay at the current residence
Your loan amount directly depends on your savings and how much you can pay as down payment. It’s advisable to make a heavy initial payment instead of borrowing a huge amount. Why? Because it can significantly reduce your financial burden in the future and give you enough time, energy and resources to focus on other essentials of your financial security like a house, your retirement planning, building an emergency fund etc. Now’s when all your savings can come to your rescue. They can save you from the wrath of a long-term loan and tons of EMIs. Other important factors that decide your loan amount are the car model you’re aiming for and whether you’re going for a new or a used car.
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