Dialabank: Who Can Apply For A Car Loan

One of the main factors that Banks and lending institutions take into consideration while determining an application for a car loan is the credit score of the particular person which should at least be 700, this will maximize their chances of availing the car loan. Other than this the borrower should have a continuous source of income at least for the past two years, The borrower should not have defaulted on any of their payments which will decrease their credit score and greatly reduce their chances of availing a car loan.

There is a facility on various bank websites, including HDFC bank, which is known as a car loan EMI calculator. This calculator considers the principal amount, rate of interest, and loan tenure of the car loan and gives you the monthly payment, which you will have to pay to the lender, which in this case is HDFC bank.

The eligibility for a car loan varies in each bank, HDFC follows the below procedure:-

Salaried Individuals:-

Borrowers should be working in an organization for a minimum of one year with a work - experience of a minimum of two years.
Borrowers should have a telephone or postpaid mobile connection.
Minimum earnings should be three lakh, including the income of the co-applicant.
Latest salary slip and form-16 required.

Self Employed Individuals and Professionals (Sole Proprietorship):-

The business’s tenure should be a minimum of 2 years, and the company should be up and running for at least the past two years.
The minimum earnings of the borrower should be Rs. 3 lakh.

Self Employed Individuals and Professionals (Partnership Firms):-

Those who can be considered self-employed individuals or professionals are those who are partners in the field of service, trading, or manufacturing.
The minimum turnover of the company should be Rs.3 Lakh per annum.

The others who are eligible are self-employed individuals of public and private companies with a minimum earning of Rs.3 lakh per annum.

Part-payment charges:-

Part-payment is granted subject to fulfillment of 12 months (i.e., Post payment of 12 EMIs).

Part-payment will be approved twice during the car loan tenure. Part-payment is allowed only once a year. Part-payment will not increase the past 25% of Principal Outstanding.

5% on the part payment amount in case of part prepayment will be within 13-24 months from the first EMI (Equated Monthly Instalment). 3% on the part payment amount in case of part prepayment will be after the 24 months of the first EMI (Equated Monthly Instalment).

The rack rate of interest or rate of interest that HDFC bank offers on car loans is 8.80% - 10%.

The minimum age of a borrower should be 21 years.

Conclusion:-

If you fall within the criteria mentioned above, you are eligible for a car loan without any hassle or troublesome procedure.

Must Read-Common Terms of Car Loans That One Must Know