Car Loan
Car loans in India generally carry the following features:
- One can opt for new or used car loan depending upon the need and the kind of car requirement. Though, most people prefer a car loan over new cars and not the second hand ones.
- Car loan option in India, for a majority, is an alternative that lets them purchase a car which is better than the one available in their budget since the car loan approval is quick.
- Car loans in India generally provide a fixed rate of interest option while repayment through EMIs. This keeps you assured of a fixed repayable amount on a monthly basis towards the car loan, facilitating better budget planning without disturbing your usual expenses.
- A bank offering car loan mostly also provide flexible repayment tenure options of 1-7 years to repay the car loan amount in regular EMIs.
- Car loans in India are often easier to avail when compared to any other loans and involves easy documentation with clear instructions and guidance throughout the full car loan approval and sanction process.
- Car loan borrowers can avail loans up to Rs. 1.5 cores, mostly comprising of 100% of the vehicle’s on-road price.
- Most banks have reasonable EMIs within flexible tenure options to offer on Car loans.
Car Loan Eligibility Criteria
Almost anybody who fulfills the basic car loan eligibility criteria can apply for a car loan in India. The basic requirements to take up any loan are driven by the age, employment status and other demographical factors of the car loan subscriber along with of course, their repayment capacity. The common requirements, irrespective of the financial institution or loan amount, for an individual to be eligible for a car loan approval include:
- The borrower should be salaried, self-employed, business owner or a professional
- They should be of Indian nationality residing in or outside India
- They should be at least 21 years old and not more than 65 years old
- Should meet the minimum repayment capacity or minimum salary requirements
- They must be in the current job for one year (salaried) or two years in the same business (self-employed or professional)
| Car Loan Eligibility Criteria | |
|---|---|
| Age |
Minimum Age: 18 yrs. Maximum Age: 75 yrs. |
| Salary | Rs.10,000 per month (minimum) |
| Employment Type Stability | Salaried or Self-employed individual/ partnership 3 yrs. (minimum) total experience/yrs. in business/profession;2 yrs. (minimum) in current post/business/profession |
| Type of Car | New or used |
| Residence Area Stability |
Urban/Semi-urban/Rural 1 yr. (minimum) stay at current residence |