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Points checked for Car Loan Eligibility

December 9, 2015

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Car Loan Eligibility

Owing to the fact that time has become a scarce resource and physical comfort or physical well being are what all of us are concerned with, a car has ceased to be a luxury and has become a necessity for all of us. The question one’s face is whether to avail a loan to purchase a car or purchase it out of one’s means. It is always recommended that given the lower rate of interest charged by financers, one should not spend such a lump sum amount of money in one go, instead they may avail a car loan.

The financier looks into the following aspect

Net income : If you are contributing more than minimum in your PF or other group funds, which are bringing down your net income, you may consider minimizing them to increase your net income.
CIBIL score : A CIBIL score is checked by the financer to know one’s history of dealing with advances. The score is lowered if one tries to avail a loan from various sources. So, once you want to avail a loan, finalize the financer and then go ahead as too much enquires lowers the score
Networth : Also, it is required to declare one’s assets and liabilities and the higher the networth, your chances are improved.
Tenure : Also even you have higher repayment capacity, it is always advisable to opt for the maximum tenure of repayment. And since most of the banks have waived pre-payment penalty, you have the option to pay extra whenever you want to.
Surrogate Banking : Some banks offer surrogate banking facility for Car Loans for Self-employed. This makes them eligible for car loan, even without filing the Income Tax Returns.