Car loan is no longer a tough task with easy financing options available now a days. Almost every bank provides car finance to its customers. There’s a lot more to think about, especially if you’re planning on taking a loan to finance your new set of wheels. You will have to calculate your EMIs, know what interest rates are being offered by banks, keep your documents ready and most importantly know what the eligibility factors are.
Eligibility factors for Salaried Individuals:
Applicant should be a resident of India. . He or she should be an employee of a Public Limited company, Multinational company or Private limited company. Salaried Doctors, Government sector employees including Public sector undertakings and Central and local bodies are eligible for car loan.
Applicant should be minimum 21 years of age while applying for Car Loans. Minors are not eligible for applying for car loans. Maximum age can be up to 70 years at loan maturity. Different banks have different norms -regarding the maximum age factor.
Minimum net annual salary should be 2.4 lacs per annum of the applicant applying for car loan. Generally individual earning monthly salary above 10k is eligible for car loans.
Applicant should be in service minimum for the past 2 years. He should be in current employment at least for last one year. He should be a confirm employee of an organization.
• Years in residence
Minimum years in residence should be one year. He should be residing in the same city for the last one year.
• Minimum educational qualification
Applicant who is applying for car loan should have a minimum qualification decided by the banks. He should have done his graduation. This basic qualification is required by mostly all the banks.
• Repayment capacity
Monthly net income and monthly outgoings of the individual is taken into consideration. The remaining amount is the repayment capacity of an individual. The net monthly income is considered while deciding the eligibility of the applicant. Applicant should be able to pay the EMI comfortably after all his monthly outgoings.
• Past track record
Applicants past track record is also checked before deciding the eligibility. He should have a clean track record in the past so that is eligibility is increased. Cibil Score also pays a very important part in finalizing the eligibility amount of car loan.Eligibility factors may differ from one bank to another.
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