Car Loan – Converted to loan page for Car Loan

Credit Score:Financial entities check an applicant’s credit score to evaluate their past and current debt repayment behaviour and ability to repay. Applicants with a credit score over 750 enjoy higher probabilities of loan approval.  

Type of Car:Cars are assets with depreciating value; hence their resale value is considered to determine loan eligibility. Cars with sought-after features have a higher resale value. Consequently, applicants intending to purchase such cars have higher chances of loan approval. 

Employment Status: Salaried employees are required to have been working for at least 2-3 years and in their current company for at least 1 year. Self-employed applicants are required to have been in their current business for a minimum of 2-3 years. 

Income: Applicants’ income is assessed to determine their ability to make timely EMI payments. Applicants with higher incomes have a higher probability of loan approval. Applicants with lower incomes receive loans of comparatively smaller amounts.  

Employer’s Reputation: Applicants employed in major companies have a higher probability of loan approval. Applicants not working in such companies can loan a considerable amount only if their income is significant. 

Relationship with Lender: Applicants who are existing customers of a financial institution and are on cordial terms can negotiate for larger loan amounts at lower interest rates.    

Bank statement: Bank statements from the past 3-6 months.

Signature verification proof: Financial institutions have specific forms for signature verification.

Proforma invoice: A proforma invoice stating the car’s price must be filed to specify the desired loan amount. Loans of up to 95% of a car’s price are offered.

Low car loan interest rates are approximately 7.30% per annum.