Bengaluru is a vibrant Indian city with several career opportunities in various fields. Unsurprisingly, the cost of living in the city is higher than in most other cities due to its vast population and heavy traffic. Most people own a four-wheeler or a two-wheeler to get around the city for work, school, or shopping. The others take public transportation, such as metro trains and buses. Cars are undeniably convenient modes of transportation unless they’re stuck in traffic.
If you want a car but don’t have the money to buy one, you can buy a used car of your choice. Used or pre-owned cars are less expensive than new cars. You can buy a good-condition used car of the same model with the help of used car loans (less than five years old). Furthermore, if you change automobiles every few years, choosing used cars rather than new ones will save you money.
Eligibility Calculator for Used Car Loans
For some, a car is just a mode of transportation, while it is a fantasy for others. There are numerous reasons for buying a used car. Learning drivers typically prefer a used automobile to gain confidence before upgrading to a new vehicle.
For some people, a used car is the only option. It can also be a decent bargain if the seller is getting rid of a good car at a low price. Regardless of the reason, purchasing a used car is a lot easier these days. Banks and financial organisations have established lending schemes for clients interested in second-hand cars. Customers can get loans ranging from 40-100% of the car’s value.
Eligibility Criteria for Used Car Loans.
There are some eligibility requirements for a bank to approve the loan application. Eligibility varies from one bank to the next.
Some key requirements are as follows:
You must be a permanent resident of India. Some banks, such as Federal Bank, will consider NRIs.
Salaried employees, self-employed individuals, professionals, sole proprietorships, partnerships, corporate companies, and Hindu undivided families are all eligible.
- Terms of employment:
Banks also demand you to remain working or in the same line of business for a set amount of time, usually one to three years.
- Applicant’s age:
Most banks need applicants to be at least 21. At the end of the loan term, salaried employees should not be over 60. It is extended to 65 for self-employed people.
There must be a minimum net annual income or profit. A minimum income of Rs. 1 lakh to Rs. 4 lakh is required.
- Relationship with the financial institution:
Some banks will only grant automobile loans to salaried personnel if their salary is credited to their bank. Others may be influenced by their average quarterly balance or previous loans when applying for a car loan.
How to Improve Your Eligibility for Getting a Used Car Loan
- If you don’t qualify for a car loan, there are certain things you may do to improve your chances:
- If you don’t have enough money, make your spouse or direct family member a co-applicant. You can then add their earnings to the mix to meet the minimal requirements.
- You can check your CIBIL/Credit score to see where you stand. There is a small fee for this information, but you can learn why your score isn’t up to par and take steps to improve it.
- Finally, strive to eliminate as much current debt as possible. This will reduce your debt-to-income ratio, allowing you to take out a larger loan and making you right for used car loan eligibility.