car loan eligibility

Car Loan Eligibility Criteria – A Key to your Dream Car

Finance

Each individual has a different dream. But the demand for the luxury of all is almost similar. These luxurious products are also the things of utility. One among this list of many is the car. Most of us have a desire to have a car in which we can go for road trips with our family and friends or use it to go to the office. But very few of us actualize it.

The reason is the unavailability of the right amount of funds and the perfect lender who can provide the best deals at fair pricing. We compromise on our requirements. But now there is no need to do the same as by checking the car loan eligibility we can identify the banks that offer loans at the decent rates.

Here are the eligibility details of some of the banks that provide a car loan to the eligible candidates at the nominal interest rates.

State Bank of India:

SBI Bank grants finance for the purchase of a new car for the tenure of 7 years. The loan eligibility parameters are as follows:

  • The minimum age of the applicant must be 21 years and maximum age should be 65 years at the time of repayment.
  • The suitable employment categories are: Permanent Employee of State/Central Government, Public Sector Undertaking, Private Company: Net Annual Income of the Applicant and Co-Applicant together should at least be ₹ 2,50,000.
  • Professionals, Self-employed, Businessmen, Proprietary/Partnership firms: Net Profit or Gross Taxable income should be ₹ 4,00,000 per annum & above
  • People Engaged in Agricultural and Allied Activities: Net Annual Income of the Applicant and Co-Applicant together should at least be ₹ 4,00,000

HDFC Bank:

At HDFC, people can take loan up to ₹ 1,50,00,000 for the maximum tenure of 7 years. The eligibility criteria for people engaged in different occupational sectors is:

Salaried-

  • Category – Doctors, CAs, Employees of selected public and private limited companies and government sector employees
  • Age – Minimum – 21 years, Maximum – 60 years (at time of maturity)
  • Work Experience – Total experience of 2 years with minimum 1 year job continuity at current workplace
  • Minimum Income – ₹ 1,80,000 per annum

Self – Employed (Sole- Proprietorship)-

  • Category- Sole-Proprietors engaged in the business of manufacturing, trading or services
  • Age – Minimum – 21 years, Maximum – 65 years (at time of maturity)
  • Work Experience – Running business for at least 2 years
  • Minimum Income – ₹ 60,000 p.a. for standard car & ₹ 1,00,000 p.a. for mid-sized and premium cars

Self- Employed (Partnership Firms, Private and Public Limited Companies)-

  • Category – Operating in the field of manufacturing, trading or services  
  • Income – Minimum Annual Turnover should be ₹ 4,50,000

ICICI Bank

ICICI Bank provides loan up to 100% ex-showroom price for the tenure of 7 years. The following candidates can avail the benefit of car loan:

  • The salaried, self-employed professionals and self-employed non-professionals can apply for a car loan.
  • The applicant must have a minimum age of 21 years but should not exceed 65 years.

Axis Bank-

The minimum loan of ₹ 1,00,000 is issued by the Axis Bank and the maximum loan amount of up to 85% of the on-road price and 95% of the ex-showroom price is given on the selected models. The repayment is to be made within the tenure of 7 years. The car loan eligibility of the bank is given below:

Salaried-

  • Age – Minimum – 21 years, Maximum – 70 years at time of loan maturity
  • Minimum Net Annual Income – ₹ 2,40,000
  • Work Continuity – 1 year

Self – Employed Individuals-

  • Age – Minimum – 18 years, Maximum – 75 years at time of loan maturity
  • Minimum Net Annual Income – ₹ 1,80,000 for selected models and for others ₹ 2,00,000
  • Work Continuity – 3 years in the same line of business

Self – Employed Non- Individuals-

  • Minimum Net Annual Income – ₹ 1,80,000 for selected models and for others ₹ 2,00,000
  • Work Continuity – 3 years

When you apply for car loan then make sure you keep the required documents handy.

Documents Required for Car Loan:

The following documents are requisite documents:

  • Age proof
  • ID proof
  • Application form
  • Photograph
  • Residence proof
  • Income proof
  • Bank statement
  • Signature verification proof
  • Pro-forma Invoice or Rate List

There are some common factors that affect the car loan eligibility and they are as follows:

Factors Affecting Car Loan Eligibility:

  • Income of the applicant
  • CIBIL Score
  • Debt to income ratio
  • Loan amount & down payment
  • Age of the vehicle
  • Loan tenure

 

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