I’d like to know if I should hold an account in a bank to avail a car loan. And what should I do if my credit profile does not match the bank’s requirements?
The answer is no. You do not have to have an account in bank to avail the car loan from the same bank. However, it helps if you have the account since banks can easily check your credentials. Moreover, banking with the same bank builds personal relation with it which helps you in availing loan.
If your credit profile doesn’t meet bank’s requirement, you should speak with bank manager. Many times, some of the criteria do not match credit profile of borrowers. You have to check which specific criteria; you are not able to meet. There are some criteria which must be met while there are few which should be met.
You can try few non-banking financial companies (NBFCs) for car loan if you are not able to get it from banks. There are many NBFCs (such as Tata capital) that are more liberal in lending.
It is not necessary to have an account with the bank from which you want to take the loan. However, having one might help you get better rates. If the bank is not willing to give you a loan, you can negotiate using your relationship with the bank.
Do you know that your Credit Score is a good tool to bargain for a better rate? Many people do not pull out their Credit Scores before placing a loan application and are not even aware of their scores. People with good Credit Scores can expect a slight relaxation in terms of norms and interest rates, but unless you ask, the bank may not offer it.
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