In the wake of the COVID-19 pandemic, people have become more careful and health-conscious than before. Instead of public transport, we feel safer while travelling in a personal vehicle. Besides safety and hygiene, having a personal car is more convenient and cost-efficient as well.
Arguably, therefore, many individuals who did not own private cars before are looking to buy one through various financing options. In these testing times, the availability of a car loan becomes a viable option for people who do not have adequate financial backup to buy a four-wheeler.
To help you understand the various factors and eligibility criteria for getting a car loan, here are some insights into the latest car loan eligibility criteria updates.
Car Loan Eligibility Criteria
|Age of Applicant||18-60 years|
|Annual Income||Rs 3 lakhs p.a. (minimum)|
|Car Model||Any approved model|
|Type of Employment||Salaried or self-employed|
|Place of Residence||India (Urban/Semi-urban/Rural)|
|Duration of Stay in Residence||One year (minimum)|
These are general criteria for getting a car loan from your bank. Usually, COVID loans are offered to existing loan customers only. If you have high CIBIL score and banking relationship, banks can consider your car loan application after you fulfil all criteria.
There are some bank-specific car loan eligibility criteria during this COVID-19 pandemic that you must meet to process the request. Besides, there is a cap on the maximum loan amount for all individuals.
Factors Affecting Car Loan Eligibility during the COVID-19 Crisis
Credit or CIBIL Score
Banks prefer existing customers for lending car loans who have maintained a good credit score of above 750. Your credit report also shows that you are responsible for repaying loan amount on time. It helps in accepting car loan applications readily. As the facility is mostly available for existing customers, it further builds trust.
Type of Car
A maximum cap has been put on the car loan amount. They type of car or model you choose to buy may also determine your eligibility. Every vehicle has a resale value owing to its specifications and additional features. If the resale value is high, your car loan eligibility is also high and vice-versa. Car depreciation value is also considered for calculating the loan amount.
Employment Status or Longevity of Business
A person must be salaried to get their application accepted by the bank. You may also have to present salary slips of the past few months as proof. Besides, you must be working with your current employer for at least one year to get your car loan application accepted.
If you are self-employed, you should have the same business running over for a minimum of 2 to 3 years.
A good credit score, along with a good banking relationship with your existing bank, can also help in getting a car loan. Sometimes, both can charge lower interest rates (with negotiation) on a higher loan amount.
Car Loan Eligibility Calculator
A Car Loan Eligibility Calculator can help you get an approximate idea of your car loan amount. Online eligibility calculators consider different criteria, including your income. Through this tool you can know if your preferred bank or lender will provide the expected car loan or not under eligibility conditions.
If you are planning to buy a car, use a car loan eligibility calculator beforehand to stay informed.
Get Your Car Loan to ensure safety amidst the COVID-9 Crisis
Safety is everyone’s concern when it comes to travel. The fear of contracting the COVID-19 infection has led people to stay indoors mostly. At the same time, the mass appeal of having a personal four-wheeler has gained momentum.
Car loans can help you save your savings while facilitating the purchase. Reputable banks like Axis bank offer better services and dedicated customer support to help you throughout the car loan application process. You can also avail their zero down payment services along with 100% on-road funding for eight years. Upon fulfilling the eligibility criteria can quickly secure a car loan even during this pandemic.