| Car Loan Eligibility Particulars | Details |
| Minimum Age | 18 years |
| Maximum age | 60 Years for salaried & 65 years for self-employed and businessmen |
| Monthly income of loan applicant | Rs.10,000 per month |
| Pre-existing EMI amount | Depends on loan amount, loan tenure, and interest rate |
| Country/Place of residence | India Rural/semi-urban/urban |
| Stability in residence | At least 1-year stay at present residence |
| Car manufacturer | Any approved Indian or foreign car manufacturer |
| Car model | Any approved car model |
| Type of employment | Salaried or self |
| Date of birth | Applicant’s age should be at least 18 years and not more than 75 years |
| Type of residence | Any approved residence with a good parking space inside or outside the house |
A Car Loan Eligibility Calculator is a tool used to determine the car loan amount that a person can apply for with a bank. The eligibility calculator can help an individual get a preview of the percentage of the maximum loan amount that can be sanctioned by the bank. The maximum loan amount and tenure of the loan vary depending on whether the car is new or used, value of the car, and the maximum EMI that the applicant can pay. The car loan amount sanctioned by a banking institution also depends on the loan tenure opted for and the monthly income of the loan applicant.
An individual will have to provide a few basic details such as:
- The monthly income of the applicant
- Pre-existing EMI amount
- Country/place of residence
- Car manufacturer
- Date of birth
- Car model
- Type of employment
- Annual Income
- Type of residence
With a Car Loan Eligibility Calculator, an individual can compare car loan amounts and tenures offered by various banks. Once an individual selects either the “New Car or Used Car” options, they would have to input their monthly income and the EMI amount on any existing loan amount.
Car Loan Eligibility for Salaried Individuals
A number of these lenders offer lucrative car loan schemes to salaried individuals. With a steady income, these individuals are more likely to repay their car loan without any hiccups. Depending on the type of car loan that’s available, banks and financiers have different conditions and criteria that an individual would have to meet. A salaried individual should earn more than Rs.2 lakh per annum to be eligible for most car loans. These individuals will be eligible to avail a car loan ranging between Rs.6 lakh and Rs.7 lakh at an affordable rate of interest. Salaried individuals who earn an annual salary that’s mentioned will be entitled to receive a higher car loan amount.
A car loan is sanctioned to an individual after he/she has submitted their salary slips along with their PAN card information. In some cases, financial firms or banks will require a copy of the applicant’s income tax returns which were paid by the applicant in the previous financial year. Other requirements may include the type of work that they are involved in. The lender will want to ensure that the applicant has a stable job to ensure that the applicant has a steady income coming in during the tenure of the car loan. The applicant will also have to provide a PAT (Profit After Tax) if they work in a private firm or company. The minimum PAT should be over Rs.2 lakh. The business of the company or firm that the applicant is working for must show stability for more than 3 years.
Pre-approved Car Loans for Salaried Employees
Applicants who have a salary account with certain banks can get pre-approved loans if they are employed at any of the following organisations:
- Multinational Corporations (MNCs).
- Public Limited and Private Limited Companies.
- Permanent employees of any Public Sector Undertakings (PSUs).
- Permanent employees of the State or Central Government.
- Permanent employees of reputed educational institutions like schools or colleges.
Car Loan Eligibility Criteria for a Used Car Loan
With the used car market steadily growing in India, banks and lenders have realised that affordable and lucrative car loan options would bear fruit in the auto market. Lenders have realized this and have started introducing used car loan products into the auto market to cater to the needs and requirements of the people. In today’s times, car owners change cars every few years which has resulted in a number of used cars entering the market. A buyer can either purchase a used car from the original owner directly or they can purchase their car from a certified dealer. Banks have been quite flexible in offering customization options which customers can avail on their used car loans. An individual is eligible for a used car loan option if they meet the following criteria:
- The borrower (if he/she is a salaried individual) should earn a minimum annual salary of Rs.3 lakhs and should also be employed for a minimum term of two years while working with the current employer for at least one year.
- The borrower (if he/she is a self-employed individual) should earn a minimum annual income of Rs.2 lakhs and should be involved in business for a minimum period of 3 years.
- A potential used car loan applicant will have to submit the following documents to have their application approved:
- Proof of Identity: A borrower can submit their PAN Card, passport, driving license or any other document that has been issued by the government.
- Proof of Age: The borrower’s age should be more than 21 years to avail a used car loan. The borrower can provide a relevant document that has been authorized by a legal authority for proof of age. Documents like ration card, driving license, voters card, passport, school leaving certificate, etc. are accepted.
- Proof of Income: Salaried individuals can submit their ITR/Form-16/Salary Slips as a proof of income. Self-employed individuals can submit their balance sheets or ITRs. P&L accounts can also be submitted.
- Proof of Address: A borrower can submit their driving license, ration card, voters card, school leaving certificate, passport etc.
- Other documents that will be required are a signature verification proof and 2 passport photographs.
Guide to Choosing the right Car Loan
Choosing the right car loan can be a tedious job requiring a lot of research and time. But if a borrower does their research on car loans offered by various banks and lenders, he/she can save a lot of money when choosing their car loan. With an increase in consumer needs, car makers have launched a number of new products that come with attractive features. A good car loan can help a potential car owner realise their dream of owning their own four-wheeler. Some of the important points that a borrower will have to keep in mind are:
- The borrower should do their research to ensure that they choose the right car loan option that best suits their needs and requirements. Various banks offer car loans and charge different interest rates. It is therefore advisable that a borrower compares car loans offered by different banks.
- The borrower should use a car loan EMI Calculator to assess their finances during the tenure of the loan.
- It is very important for borrower to stick to his/her budget to determine their repayment capability. It is advisable that the borrower should finalize on a car that best suits their budget.
- The borrower should consider the additional charges and fees which are levied on a car loan.
- The borrower should ensure that they are aware of the rate of interest that’s levied on a car loan. A lower interest rate would indicate that the EMIs that are paid towards a car loan would also be low. However, a lower interest rate that’s offered on a car loan signifies that a few features or services would not be available with the car loan.