Wednesday, 7 February 2018

What Is the Eligibility Criteria for 4 Wheeler Loans

Buying a car is more of a necessity these days than a luxury. In the fast moving life of the urban city or a subtle life in the village, Cars are the easier and faster way to commute between destinations.  But not everyone can afford a car. Afford in this case is not only money wise but also maintenance wise. Because, when you buy a car, it’s just not buying a car, as a onetime investment, it needs maintenance at regular intervals. Petrol prices are also on hike every time. But still, you surpass all this and plan to buy a car which is not very expensive. But still, you cannot pay the entire amount at one shot time! And hence, you plan to take a car loan.
Now while thinking of applying for a car loan, you should check a few things before regretting. Whichever loan you think of taking, always check your credit score. A credit score is a number between 300-900 which shows how responsible you are in making the payments. A better credit score will not only help you in getting a loan faster but also would help in getting the lower interest. Also, check if you are not on a loan defaulter list. Suppose, you had taken a loan/s in past, and you were unable to make the payments because of any reasons, and the account is still pending, and not closed, there are high chances that you would be in that list. If you are the one from it, make sure you take the required steps in order to get out of it. Else, it becomes too difficult to first of all get a loan or second of it at a lower interest rate.
Now, Let us check the criteria’s for taking a car loan with different banks.

Age bracket (in years)




Net Salary/Profit Per Year.


Job / profit criterias

Total employment  or ITR  of 2 years, and Should be In the same job since 1 year
Total employment  or ITR  of 2 years, and Should be In the same job since 1 year
    Minimum 1 year of continuous employment.
Total Employment or ITR Of 2 years

The Above mentioned table gives an idea of car loan eligibility with few of the banks. We can see here that more or less it is similar in all the cases where the age bracket is 21 years or above upto 65 or 70 years. Also the net income in case of a salaried person or self-employed individual who files ITR, should be of 2,40,000 per year. The total employment tenure for salaried person is mostly 2 years and 1 year in the current organization and for self-employed it is minimum 2 years or ITR filed.
While choosing any of the banks to take your loan, always take the following points into consideration.
  1. Amount of down payment you have to make
  2. How much loan amount bank will sanction
  3. Your credit score
  4. Interest rate what bank will offer you.
Like any other loan, the disbursal procedure and documentation would remain the same, like the KYC documents, photograph, income proof, etc. Only with the logic that for a car or an auto loan you need to have a license as well.

Make sure whatever decision you take in buying a car or talking a loan should be the most feasible one for you. It should not burden you at any given point of time in life. Buy the car whose EMI you can pay easily, and take a loan which costs you the least interest rate. Dreaming big is always good, but making an impulsive and non-futuristic decision will not help you in anyway but just add difficulties and burden in your head.

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