Here’s a quick guide if you are planning to take a car loan

For Sahil and his father, owning a new car had always been a shared dream. So when his father’s 50th birthday came around, Sahil knew exactly what he wanted to gift. However, there was one hiccup. Even with his savings and bonus, he couldn’t afford the car model he wanted.

That’s when the thought of a new car loan hit him! A car loan will be easy to secure, and the convenient EMI plans will make the repayment seamless. Not to mention, he will be able to buy the car his father wanted! So, to get familiar with the application process, he started researching online. And this is what he learnt.

Eligibility for a new car loan

Various Banks have different eligibility criteria to qualify applicants for the loan.

• The applicant should be a resident of India.
• They must be between the age of 23 to 65 years
• The applicant must be a salaried employee or a self-employed person with a minimum working experience of one to three years.
• They should have a stable income of two to three lakh rupees per annum.  
•  A stable residence address, the applicant’s current residence should be where they have been staying for at least one year (It is not required for individuals who have their own house).

Documents required

Once Sahil meets the eligibility criteria, he can move forward with the application by submitting the following list of documents-

1. A valid identity proof – Aadhar card, PAN card, passport, or driving license.
2. Proof of age
3. Income proof –  salary slips (three months) or bank statements (three months)  
4. Address proof
5. Recent photographs

Application process

Now, Sahil can easily apply for a car loan online. Most banks offer a swift digital application and disbursal process so that Sahil will receive his funds in no time.  Here’s how Sahil can apply for a car loan online.

1. Check the credit score
2. Fill up the application form along with all the documents mentioned above.
3. The bank will determine his eligibility for the loan and carry out a document verification process.
4. Generally, banks take one to five days to give the loan approval. He can also check his loan application status online by visiting the bank’s website.  

Things to remember

• Do your research – Research and compare the different options you get – in terms of car, price, EMI options, duration, and types of loan offers. This will help you get the maximum benefit from the loan.
• Determine your EMI – Calculate the expenses that you already have and then evaluate how car loan EMIs will fit in. This way, you can ensure smooth repayment without affecting your monthly budget.
• Other chargers apart from EMI – At times, your car loans come with additional charges such as processing fees, foreclosure charges, late payment charges, etc. You should be aware of these charges as they affect the overall cost of the car loan.

Conclusion

Now with an easy new car loan process, Sahil doesn’t have to wait to gift his father his new car! If you’re also eager to take home your dream car, apply for a car loan online within minutes.

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