Buying a car is an exciting experience. And you can fund this significant investment with a car loan. A pre-approved for a car loan can make the process much easier and faster. In this article, we will help you understand how pre-approved car loans work.
What is a pre-approved car loan?
A pre-approved car loan is a financing option where a lender assesses your creditworthiness and approves you for a car loan before you even apply for one. You can get pre-approved car loan offers for new cars as well as used cars. The lender sanctions and disburses the loan amount to you, and you can use it to buy your preferred car.
Getting a pre-approved car loan online
If you are an existing customer of a financial institution, you may get pre-approved offers based on your existing records with the institution. Customers with a longer relationship are likely to have ready pre-approved offers when they log in to their customer portal account.
Irrespective of whether you are an existing customer or not, you may still get opportunities to check a pre-approved offer on car loans. If you are interested in exploring the offer, you will need to provide a few details to check your car loan pre-approved offer online. The offer will show an eligible loan amount. In case you are eligible for a high loan amount, you can choose to apply for it or go for a lower loan amount as per your need.
You can improve your chances of getting favourable pre-approved loan offers by maintaining a good credit score. Your credit score reflects your creditworthiness. Lenders check credit profiles to evaluate an individual’s likelihood of loan repayment based on credit behaviour.
Improving your credit score
Here are a few tips to improve your credit score:
- Pay your bills on time:
This is one of the critical factors that determine your credit score. Late payments negatively impact your credit score, so make sure to pay your bills on time, every time. - Use credit cards wisely:
Having a credit card and paying off the monthly balance on time can help improve your credit score. However, using it excessively or maxing out the credit limit can harm your credit score. - Review your credit report regularly:
Make sure to review your credit report regularly and keep an eye out for any discrepancies or errors. A mistake in your credit report can negatively impact your credit score. - Avoid applying for multiple loans or credit cards:
Applying for multiple loans or credit cards within a short period can indicate to a lender that you are in desperate need for credit and hence riskier. - Do not close old credit cards:
Even if you do not use an old credit card, keep it active and use it for small purchases to ensure that the card does not get cancelled due to inactivity.
Benefits of getting pre-approved for a car loan
Getting pre-approved for a car loan in India comes with several benefits, including:
- Saving time:
With a pre-approved offer on car loans, you can focus on searching for the right car. The available loan amount will allow you to shortlist the car models of your preference. - Clear budget:
You will have a clear understanding of your budget for your car shopping. Decide whether you want to buy a used car or a new car as per your budget. - Convenience:
Pre-approved car loans are a convenient financing option for anyone looking to buy a car in India.
Bajaj Finance offers new car loans and used car loans to help you with your car purchase. These loans come with an easy application process, quick approval, and flexible repayment tenures.
