About Car Loan Eligibility
Car loan is becoming the most preferred way to buy a car whether a new or used one. In order to support people in buying a vehicle, various banks and financial institutions are offering several offers on a car loan. The loans are being designed in order to suit the needs of a different kind of customers.
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Before availing a car loan, it is important to know the Eligibility Criterion that is required by various banks and institutions in India. The Eligibility Criteria that have been set by banks is quite similar in the case of both leading public sector banks and private sector banks.
Basic Car Loan Eligibility Criteria:
- Age: The age criteria set by banks and NBFCs for a car loan is according to the RBI’s guidelines. For salaried people, the minimum age required is 25 years and the maximum age permitted is 58 years. In the case of self-employed, the minimum age is 28 years and maximum limit is 65 years.
- Employment: The banks look for a set of employment details while approving a car loan. For salaried people, the minimum period of employment is of 2 years, and a minimum period of 3 years is required in case of self-employed people.
- Income: The income requirement to avail a car loan differs from bank to bank. Many nationalized banks require a minimum income of Rs 2.5 lakhs per annum. In the case of private banks, this limit may be lowered depending on other credibility factors.
- Credit Score: Checking Credit Score is very important before the approval of the car loan. Presently, CIBIL is the primary institution that gives credit rating of individuals to most banks in India. Thus having a bad credit score can be the main obstacle in availing an auto loan.
One must bear in mind that the lending firm takes into account the basic payment ability of an individual while approving a car loan.
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