Is an auto loan a good idea?

Who is eligible for a vehicle loan?

Any individual elderly 21 to sixty five years with an awesome credit score score and a constant income can apply for a car loan. Whether you’re a salaried person or a self-employed character, the minimal annual earnings requirement of an applicant is Rs.2 lakh. The applicant must have at the least 2 years of work revel in within the equal career. In other words, the man or woman have to hold down a activity inside the identical subject for minimal 2 years. Banks examine the applicant’s credit history at the time of processing a car loan utility as it indicates the man or woman’s credit score management skills. Having a credit score score of 750 or above will make you eligible for a automobile mortgage. A top credit score score shows your creditworthiness. Depending on whether you meet the car loan eligibility criteria set by way of the bank, your automobile loan can be approved or denied. Before making use of for a car loan, take a look at your vehicle loan eligibility on-line in order to avoid rejection. Too many rejections could have a negative effect in your credit score.

 

What are the capabilities of a automobile loan?

Understanding how a Auto Loan Specialist works can help you pick a suitable vehicle loan offer. Here are the vital capabilities of a car loan:

 

Car mortgage quantity: Banks offer a most car mortgage of as much as 85-one hundred% of the on-street rate/ex-showroom fee of the automobile. If you pay a excessive down-charge on your preferred car, then the cost of your car mortgage will be less.

Car loan tenure: You can opt for a quick or long automobile mortgage tenure starting from 1 to 7 years. A quick mortgage tenure will make certain you pay off your loan in a short period of time however will have excessive EMIs whereas a protracted tenure may have low EMIs but you’ll become paying greater in interest payments. It is advisable to apply a web car loan EMI calculator tool to pick a appropriate vehicle mortgage tenure so you can keep up on hobby bills.