Car Loan Eligibility

There are many things that must be checked when applying for car loan financing in India. Getting auto loans in India is easy if you are eligible. The main thing which the bank and finance company will check is the repayment capacity of the borrower. Based on this, the bankers calculate the auto loans eligibility. Having Credit cards will certainly help you enhance your car loan eligibility in top companies like Mahindra Finance, Bajaj and Tata as they show your credit history.

The car loans are available to salaried professionals and self employed individuals. The vehicle finance companies calculate the car loan eligibility depending on certain factors such as:

1. Age
2. Income
3. Type of Employment
4. Job Experience
5. Residence

Age

In India, age is the major factor when applying for auto loans. Various banks like Mahindra finance calculate the age of the borrower and then sanction the car loan amount. If your age does not meet the bank’s term and conditions, your loan application will be rejected immediately.

The minimum age should be 21 years and it can be extended up to 65 years. Age requirement differs from company employed professionals to self employed professionals. Check with different banks on their car loan eligibility requirements for car loan financing services regarding any products that you can purchase if you are under the age of 21.

Income

The second most important factor is Income. Loan lending services in India check for eligibility and if the individual is receiving a regular source of income. The minimum amount that a person is eligible for depends on the applicant’s income and. Check your car loan eligibility and the car loan financing rates by using the car loans calculator.

A salaried applicant who earns more than Rs. 1.5 lacs per annum is eligible to get a car loan in India. If the applicant is earning below Rs. 1.5 lacs per annum then the applicant is not eligible for getting auto loans.

In case of self employed individuals, if the applicant is earning more than Rs. 2.5 lacs per year, then the applicant is eligible to take a car loan in India. Less than Rs. 2.50 lacs per year will not allow them to apply for a car loan. Use the auto financing calculators to check your eligibility.

Type of Employment

If the applicant is employed in a company, then the banks also consider the type of employment. The different types of employment are:

• Salaried
• Self employed professional
• Self employed business
• Retired
• Home Maker
• Student

Banks will look at your car loan eligibility to process the bank car loans in India. Before you apply for auto loans, make sure that you have checked with BankandFinance.com to see if you are eligible. As salaried professionals can get credit cards from top companies like Mahindra Finance it will certainly help you enhance your eligibility if you get cards from such companies, especially if you have the required repayment capacity.

Job Experience

If the applicant is a salaried individual and wants to get auto loans, the bank will check the applicant’s job experience such as how long the applicant has been working for the company. The applicant should have at least two years of experience of employment in the same company. If the applicant is a salaried individual and has less than two years of work experience, the applicant generally does not meet the car loan eligibility requirements. If the applicant is self employed, then their work experience should be at least 3 years.

The bank also considers the number of employees working for the company. If the company has a strength of more than 1000 employees working, then there might be a better chance of getting a car financing loan, even if the job experience is less than 2 years. Get instant and exact figures of the total loan amount and interest rates after the tenure by using our car loan financing calculator, while being able to repay the loan amount by credit cards.

Residence

Residence is an important factor for car loan eligibility. Banks always check if the applicant is staying with family members, friends and whether they live in an owned home or rented home. Sometimes, applicants from another state apply for auto loans in the current state they are living in. This in turn may raise a red flag and residence will be a major eligibility. If the applicant is staying with friends in a rented house, then some car loan financing providers and services won't sanction the loan.

You should be ready to provide the documents to the banks to process your loan application. In top financial institutions like Mahindra Finance, Bajaj, Tata and SBI, you can enjoy minimal documentation and a hassle free loan process. Because of competition you can also get competitive interest rates between the top companies like Mahindra finance and others.

These are some of the different factors which banks and financial companies use to calculate the car loan eligibility of an applicant before they sanction loans in India. Also check the interest rate that you are applicable for with the car financing companies such as HDFC, Bajaj, and SBI Bank. Use the car loan financing calculator to calculate your monthly payments. Having credit cards with other banks will improve your credit score, which the loan officer will look at. You can also learn more about credit cards with low interest rates. Get instant quotes from the top companies like Mahindra Finance, Tata, and SBI Bank.

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