Owning a car is a dream most of us have. Whether you are eyeing a brand-new model or a reliable used car, the path to car ownership often involves securing a car loan. One of the most crucial aspects of your car loan application is fulfilling the eligibility criteria. The eligibility criteria depend on the type of car loan that you choose.
However, understanding the eligibility criteria for both new and used car loans is crucial. Meeting these criteria enhances the likelihood of loan approval and favourable terms.
Eligibility criteria for new car finance
When considering a car loan for a new car several eligibility criteria come into play. Lenders typically assess factors such as age, income stability, employment history, and credit score. With Bajaj Finserv New Car Finance, you can qualify for a loan by fulfilling these simple-to-meet car loan eligibility criteria.
Nationality: Indian resident
Age: 18 years to 80 years*
CIBIL Score: 700 or higher
If you are a salaried individual, you should have a minimum monthly salary of
Rs. 25,000. However, if you are a self-employed individual, you must submit an ITR proof of the past 2 years.
Eligibility criteria for used car loans
Used car loans present a slightly different set of eligibility criteria. In addition to your age, monthly income, and employment history, lenders often scrutinise the age and condition of the vehicle. With Bajaj Finserv Used Car Loans, you need to simply meet these basic used car loan eligibility criteria to qualify for a loan.
Nationality: Indian resident
Age: 18 to 80*
CIBIL Score: 700 or higher
Apart from the above-mentioned criteria, salaried individuals need to have a minimum experience of 1 year and a monthly salary of at least Rs. 20,000.
For self-employed individuals, submitting an ITR proof of the last 2 years is necessary. In addition to these parameters, the used car you wish to buy should not be more than 12 years old at the end of the tenure. It should not have more than 2 previous owners and you can use it only for personal use.
Whether opting for a new car loan or a used car loan, understanding the eligibility criteria is essential. Once you fulfil the required eligibility criteria, you need to submit the documents for a successful loan application.
Factors affecting your car loan eligibility
There are several factors that impact your car loan eligibility. These include credit score, monthly income, employment history, and age. Whether seeking a new car loan or a used car loan, understanding and meeting these factors significantly impact eligibility.
Credit score: Lenders assess your creditworthiness through your credit score. A higher credit score enhances your eligibility.
Income and employment status: A stable and verifiable source of income, demonstrated through employment history, assures lenders of your repayment capability.
Debt-to-income ratio and down payment: These two factors play crucial roles in influencing the lender's decision. Lenders consider these aspects to assess your financial capability and determine the level of risk associated with approving your loan.
Now that you know about the different types of car loans and their eligibility criteria, you can apply for the car loan as per your requirements. With an online application and minimal documentation, Bajaj Finance makes borrowing easy and convenient.
