All About Car Loan Eligibility Status
India is a country of rich and diverse culture. The society of India is well known for flexibility. It easily accepts the values of other traditions and societies and shows. The time has gone when fascinating cars were only seen in the movies and western countries. Now India has become a growing market for the automobile industry. Everyone wants to own a car to live a comfortable and hassle-free life. Banks and NBFCs offer different schemes of Car Loan. You can avail a car loan to get finance for your car from any bank or NBFC. But if you need more amount than you are eligible for, what is the solution.
To clear the picture, consider an example. Assume that you are eligible for 4 lakhs only according to your salary and profile and you have a requirement of 6 lakhs. No bank or NBFC will give you more amount than your eligibility. In this situation, you can consider adding a Co-applicant in your loan.
You can’t always get what you want by yourself, but if you try with someone’s help you might get what you need. This is the outcome of having a Co-applicant in your loan.
A co-applicant is a person who applies along with the borrower for the loan. The income of co-applicant will be taken as a supplement and the loan amount will be sanctioned on the combined income.
Golden Point of Adding Co-applicant in a Car Loan: You can get much more than you are expecting if you add a co-applicant. Car Loan is an easy process as compared to personal loan. If your income is 15,000 rupees, you will be eligible for only 4 lakhs. If you add a co-applicant in your car loan having income 25,000 rupees, then you will get your loan amount on the total sum of the incomes. This makes you eligible for an amount up to 12 lakh rupees. You can easily cater your financial needs by adding a co-applicant in your loan.
Who can be a Co-applicant?
Banks have some rules and criteria for adding a co-applicant. Only some specific relations can be a co-applicant.
- Parent (Father or Mother)
- Husband or Wife
Who cannot be a Co-applicant?
All blood relations cannot be treated eligible for co-applicant.
- Married Daughter and Parent
- Cousin Brother
Along with the borrower, banks also check the credit history of the co-applicant. A co-applicant is equally responsible for the repayment of the loan. The loan amount is approved on the combined income of the borrower and the co-applicant. If the borrower can’t pay the EMIs, the co-applicant has to repay the loan amount.
Having a co-applicant is like having desserts after a delicious and spicy dinner. It is like having a discount offer on a costly brand product. Two signatures are better than one for a loan approval. It will expand your loan eligibility and you can easily get the loan amount you want. If you want to increase your Car Loan Eligibility, add another signature on your loan application and get the desired amount.