Cars play a big role in daily life today. For many families, a car is not just a comfort. It is a practical need for work, school, and regular travel. But buying a car is a big expense. Paying the full amount at one time can feel difficult. This is where a car loan can help. It lets you spread the cost over time and pay in monthly instalments.
If you are thinking of taking a car loan at a young age, it is important to understand how eligibility works. Your credit score matters, but lenders also look at other factors like your income and age. Age is often used to judge repayment ability and overall risk. Getting a car loan at 18 can be challenging because many lenders prefer borrowers with a stable credit and income record. Still, it is not impossible. If you plan it well, it can also help you build a stronger credit profile for the future.
If you want to know where you stand before you begin, you can Check your pre-approved new car loan offer. It is a simple way to understand your starting point before you shortlist cars.
Build credit score
To improve your chances of loan approval, start by building a credit history. A basic way is to use a credit card wisely and pay bills on time. Regular, timely payments show financial discipline. Over time, this helps build a healthy credit score, which lenders usually prefer when evaluating a car loan application.
A steady credit record also supports better decision-making. It helps you borrow within limits and keeps repayment comfortable. If you are just starting out, the key is to stay consistent and avoid missed payments.
Make down payment
Saving for a down payment can make a big difference. A higher down payment reduces the loan amount you need. This lowers your monthly instalments and makes the repayment plan easier to manage.
It also reassures the lender because it shows commitment and financial readiness. Even a modest down payment can reduce pressure later, especially when you are managing other regular expenses.
Getting a cosigner on the loan
A co-signer can support your application if your credit history is limited. A co-signer with a stable income and a strong credit record can give the lender added comfort. This may increase the chances of approval, especially for young borrowers who are still building their financial profile.
However, a co-signer also takes responsibility if repayments are missed. So, this should be discussed clearly before applying. Both of you should be confident that the repayment plan is realistic and manageable.
Conduct research
It is always wise to compare loan offers before finalising one. Different lenders may offer different terms, interest rates, and repayment options. Read the terms carefully and choose an option that fits your budget.
You can also use tools like the car loan EMI calculator to estimate your monthly instalments. This helps you plan your monthly budget in advance and avoid taking on more than you can handle.
Additional read: How much car loan can I get
Bajaj Finance offers two types of car loans – new car finance and used car loans based on the eligibility criteria and documentation required.
With new car finance, you can get funds for purchasing a brand-new car while used car loans provide financing for second-hand vehicles. If you are applying for our new car finance, you should be aged between 21 years and 80 years*. You also need to have a credit score of 650 or higher and have a minimum salary of Rs. 25,000. Self-employed individuals need to submit ITR proof as well.
On the other hand, you can qualify for our used car loan if you fulfil the following eligibility criteria.
Age: 21 and 80 years*
CIBIL Score: 650 or higher
If you are a salaried professional, you should have an experience of 1 year and a monthly salary of at least Rs. 20,000. However, for self-employed ITR proof is mandatory. Apart from these basic criteria, the age and condition of your vehicle are also evaluated in the case of used car loans.
If you are planning your purchase, it helps to check your borrowing capacity early. Planning to buy your new car? With the Bajaj Finserv New Car Loan, get up to 100% financing of the on-road price. Check your new car loan eligibility and find out how much you can borrow.
*Higher age limit is applicable at the time of loan maturity.
Why choose Bajaj Mall for your car purchase
Exploring the car and its variants becomes easier when you use Bajaj Mall. You can check different models online, compare key details, and look at available deals in one place. It saves time because you do not need to visit multiple dealerships. Each car listing also shares useful information like price range, features, and availability, helping you shortlist the right option with more confidence.
Once you are clear about the model you want, you can move to financing without hassle through the Bajaj Finserv New Car Loan. It supports your purchase with:
- Up to 100% financing of the on-road price
- Competitive car loan interest rates
- Flexible repayment tenures
- Quick approval and minimal documentation
You can also estimate and plan your monthly instalments using the car loan EMI calculator, which helps you set a budget before you commit.
With Bajaj Mall, you can compare, decide, and book your preferred car more smoothly, while the Bajaj Finserv New Car Loan helps keep the purchase affordable and well planned. If you want to avoid delays, you can Check your pre-approved new car loan offer and move ahead faster with your chosen car.
