Purchasing a vehicle has moved from luxury to a necessity nowadays. So, car loans are offered by every bank and non-banking financial company (NBFC). However, it is important to choose a plan that fits your budget and provides you with hosts of benefits.
Make the following pointers your thumb rule before applying for a car loan:
1) Set a budget and research: You have to decide the budget for your car. Your income plays a crucial role here. Once you have your budget set, research for options. With a vehicle loan just a few clicks away, you can opt for a loan within your price segment by researching on third-party websites instead of opting for the conventional method. You should also examine the track record of your dream car and its reviews, to ensure you have made the right choice.
2) Check eligibility: One of the most important rules is the car loan eligibility. Lenders sanction your car loan based on two factors: income and credit score. Make sure the credit report is clear, sans default payments of credit card bills and existing equated monthly instalments (EMIs). You can request the CIBIL agencies to send you a report of your credit score. This is called a soft check. Your score should be anywhere between 750-900 for acquiring a car loan.
3) Compare all available options: One of the best things about online loan applications is checking in minutes which policy fits your bill. You can select a few good deals and use the online tool car loan EMI calculator to pick out the best offer that suits your requirements. Taking time to compare options, allows you to make an informed decision and provides you benefits as well.
4) Availability of documents: As with any other loan, lenders require the essential materials to approve of your car loan. Some of the critical papers you have to keep with you while applying are:
• Identity proofs such as PAN card, driving license, passport
• Address proofs like utility bills, ration card
• Income proofs include the last 3 months salary slips, employment letter, bank statement of the past 6 months
• Form 16
If you are self-employed, the documents could differ:
• Business ownership papers
• Profit & loss statement, income computation sheet and balance report of past 2 years
• 6 months’ bank statement
• Last 2 years IT returns, proof of turnover
If you do not follow these rules, you could lose out on your vehicle loan. Your aspiration of owning a car will only become a distant dream.
Make the following pointers your thumb rule before applying for a car loan:
1) Set a budget and research: You have to decide the budget for your car. Your income plays a crucial role here. Once you have your budget set, research for options. With a vehicle loan just a few clicks away, you can opt for a loan within your price segment by researching on third-party websites instead of opting for the conventional method. You should also examine the track record of your dream car and its reviews, to ensure you have made the right choice.
2) Check eligibility: One of the most important rules is the car loan eligibility. Lenders sanction your car loan based on two factors: income and credit score. Make sure the credit report is clear, sans default payments of credit card bills and existing equated monthly instalments (EMIs). You can request the CIBIL agencies to send you a report of your credit score. This is called a soft check. Your score should be anywhere between 750-900 for acquiring a car loan.
3) Compare all available options: One of the best things about online loan applications is checking in minutes which policy fits your bill. You can select a few good deals and use the online tool car loan EMI calculator to pick out the best offer that suits your requirements. Taking time to compare options, allows you to make an informed decision and provides you benefits as well.
4) Availability of documents: As with any other loan, lenders require the essential materials to approve of your car loan. Some of the critical papers you have to keep with you while applying are:
• Identity proofs such as PAN card, driving license, passport
• Address proofs like utility bills, ration card
• Income proofs include the last 3 months salary slips, employment letter, bank statement of the past 6 months
• Form 16
If you are self-employed, the documents could differ:
• Business ownership papers
• Profit & loss statement, income computation sheet and balance report of past 2 years
• 6 months’ bank statement
• Last 2 years IT returns, proof of turnover
If you do not follow these rules, you could lose out on your vehicle loan. Your aspiration of owning a car will only become a distant dream.
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