Car Loan Eligibility – 3 Main Factors to Consider

The current scenario has made us believe that taking public transportation is not very safe. People are increasingly purchasing cars for their personal use. People nowadays prefer to commute in their own car, whether it is a 4-wheeler or a 2-wheeler. The majority of people who buy cars use loan schemes offered by car loan providers. This blog post outlines the 3 major factors to consider when determining your car loan eligibility. 

1. Credit Score

 Your credit score is the first and foremost criterion that must be met in order for your loan application to be approved. While different car loan providers use different criteria to evaluate credit scores, if your credit score is above 650, you have a good chance of getting your loan approved. 

2. Employment Status

 Again, different loan lenders will judge you based on different criteria. Most banks check for one-year employment history with the same organisation or a total employment term of 2-3 years if you have changed jobs frequently. The eligibility for self-employed applicants is that they must have been in the business for at least 2-3 years. 

3. Income of the Applicant

Another factor that lenders check before approving a car loan or any other loan is the applicant's income. This is done to ensure that the applicant has the financial capacity to repay the loan. For example, you are availing of a Maruti Suzuki Swift car loan, so loan providers need to ensure that you are capable of paying off the car loan amount with interest. 

We hope we've covered everything there is to know about car loan eligibility requirements to get your loan approved quickly and easily. If you are looking for a car loan, then these above pointers will help to avoid the disappointment of the application rejection. If you are aware of the requirements ahead of time, you will be a more informed customer who will be able to negotiate with the car loan provider.