Owning a car has become an indispensable facet of modern living, offering unparalleled convenience and flexibility in daily commuting. From brand-new cars to second-hand vehicles, the choices are abundant, and with various financing plans, bringing home your dream car is made simple.
However, before you apply for a car loan, you need to understand the different types of car loans available in the market, their eligibility criteria and more. Read our detailed guide to learn more about car loans, their eligibility parameters, and the application process.
Types of car loans
With the plethora of choices available, car loans emerge as instrumental tools that bridge the financial gap, making this dream attainable. Whether one envisions the allure of a brand-new vehicle or the value proposition of a reliable used car, understanding the nuances of both new and used car loans is essential in making informed decisions.
New car loans
New car loans help you with the required funds to purchase a brand-new vehicle. With uncomplicated eligibility criteria and a streamlined documentation process, the application for these loans is effortlessly simple. Potential buyers can secure financing equivalent to 100% of the on-road price of their desired new car. Bajaj Finance offers high-value new car loans of up to Rs. 10 crore with flexible repayment tenures and competitive car loan interest rates.
Used car loans
The pre-owned or second-hand car market presents a wealth of value, offering a diverse range of vehicles beyond standard hatchbacks and mini-SUVs. In this market, one can discover sedans, premium SUVs, and more, all without straining the budget. To facilitate financing for your venture into the world of used cars, we provide used car loans with a generous upper limit of Rs. 1.02 crore.
These loans come with flexible repayment tenures spanning from 12 months to 84 months, allowing you to repay your loan with convenience.
How to get approved for a car loan
Getting approved for a car loan requires a combination of financial preparation and meeting the lender's requirements. Here’s how to increase your chances:
- Check your credit score: A good credit score (700+) improves your chances of approval and ensures better loan terms. If your score is low, work on improving it before applying.
- Evaluate your finances: Ensure you have a stable income and a manageable debt-to-income ratio. Lenders assess your ability to repay the loan based on your earnings and existing financial obligations.
- Choose the right loan amount and tenure: Determine how much you can afford for the car loan. Opt for a loan amount and tenure that fit within your budget for easy EMI repayment.
- Gather required documents: Ensure you have all the necessary documents ready, such as proof of identity, address, income, and employment details.
- Compare lenders: Shop around for the best interest rates and loan terms from banks or financial institutions.
Following these steps will help you get approved for a car loan smoothly.
How to get a car loan
Getting a car loan is simple and easy. In order to qualify for a car loan, you need to fulfil these basic car loan eligibility criteria.
Nationality: Indian citizenship is a prerequisite for qualifying for a car loan from Bajaj Finance.
Age: For new car loans, you need to be between 18 years to 80 years*. Similarly, for used car loans, you should be between 18 and 80 years*.
CIBIL Score: While a higher credit score is preferable, Bajaj Finance considers customers with a CIBIL Score of 700 or higher as eligible for a car loan.
Employment: For new car loans, salaried individuals must showcase a minimum monthly income of Rs. 25,000, whereas self-employed individuals are required to submit Income Tax Return (ITR) proofs from the past 2 years.
In the case of used car loans, salaried individuals need a minimum work experience of 1 year and a monthly income of Rs. 20,000, while self-employed individuals must provide ITR proof for the preceding 2 years.
*The higher age limit is applicable at the time of loan maturity.
Once you meet these basic parameters, you can apply for our car loans online or offline. Applying for a car loan online is simple and quick. All you need to do is to fill out an online application form, submit the required paperwork and wait for the loan to get approved.
