Eligibility criteria and documents required for new car loan
You will be required to meet some basic car loan eligibility and provide a few essential documents to complete the application process.
Eligibility criteria
- Nationality: Indian
- Age: 18 years to 80 years*
- CIBIL Score: 700 or higher
- Employment:
- For salaried: Individuals should have a minimum monthly salary of Rs. 25,000
- For self-employed: Individuals must submit an an ITR proof of the past 2 years
Proprietorships, partnership firms, private limited companies, trusts, and others can also apply for a new car loan.
*Higher age limit is applicable at the time of loan maturity.
Documents required*
- KYC documents - Aadhaar/ passport/ voter’s ID/ driving license/ letter from NPR/ NREGA job card
- PAN card
- Employee ID card
- Salary slips for the last 3 months
- Bank account statements for the previous 3 months
*Any additional documents that may be required will be communicated during the loan application process
Factors affecting car loan eligibility
Several factors influence car loan eligibility, determining whether a lender will approve your loan application and under what terms:
- Credit score: A higher credit score increases your chances of approval and may qualify you for lower interest rates. Lenders use this score to assess your creditworthiness based on your credit history.
- Income and employment stability: Lenders evaluate your income level and stability of employment to ensure you can repay the loan. A steady income stream reduces the risk for lenders.
- Debt-to-income ratio (DTI): This ratio compares your monthly debt payments to your gross monthly income. A lower DTI indicates better repayment capacity and increases eligibility.
- Loan amount and down payment: The amount you wish to borrow and the down payment you can make affect your eligibility. A larger down payment reduces the loan amount and decreases risk for the lender.
Understanding these factors helps you assess your eligibility for a car loan and prepare your finances accordingly before applying.
How to improve car loan eligibility
Improving your car loan eligibility involves several key steps to ensure you secure the best possible terms.
- Check your credit score: Start by checking your credit score; a higher score increases your chances of approval and better rates. You can improve your credit score by paying off outstanding debts and correcting any inaccuracies on your credit report.
- Lower your debt-to-income ratio: Next, reduce your debt-to-income ratio. Lenders prefer borrowers with a low ratio, so try to pay down existing debts and avoid taking on new ones before applying for the loan. Additionally, save for a larger down payment. A substantial down payment reduces the loan amount and demonstrates financial responsibility, making you a more attractive borrower.
- Improve your income sources: Consider stabilising your income if it is irregular. Lenders look for consistent income to ensure you can manage monthly payments. Providing documentation of steady earnings, such as pay stubs or tax returns, can bolster your application.
- Research for better loan offer: Finally, shop around for lenders and compare their terms. Different lenders offer varying rates and conditions, so exploring multiple options can help you find the best deal. Improving these factors can significantly enhance your chances of obtaining a favourable car loan.
How to apply for new car loan
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Frequently asked questions about new car loan eligibility
Frequently asked questions about new car loan eligibility
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You have the flexibility to select a repayment tenure that works for you, ranging up to 96 months. You can use our car loan EMI calculator to estimate your monthly instalments.
To be eligible for our new car loan, you need to have a CIBIL Score of 700 or higher.
You can get new car loan of up to Rs. 10 crore, which you can repay comfortably over a tenure of up to 96 months.
The eligibility criteria for car loans are as follows:
Nationality: Indian
Age: 18 years to 80 years*
CIBIL Score: 700 or higher
Employment:
For Salaried: Individuals should have at least 1 year of experience and a minimum monthly salary of Rs. 25,000
For Self-Employed: Applicant must submit an ITR proof of the last 2 years
*Age should be 80 years years or less at the end of the loan tenure.
In order to qualify for a new car loan offered by Bajaj Finance, you must have a minimum monthly salary of Rs. 25,000.
Bajaj Finance offers new car loans that come with simple eligibility criteria and minimal documents. You can qualify for a high-value new car loan if you are a resident Indian citizen aged between 18 years and 80 years* with a minimum CIBIL Score of 700 or higher. Apart from these basic criteria, if you are a salaried individual, you should fulfil the minimum monthly salary requirement. For self-employed individuals, ITR proof is mandatory.
Bajaj Finance offers new car loans that come with simple eligibility requirements. To qualify for a new car loan offered by Bajaj Finance, you must have a minimum salary of Rs. 25,000. However, apart from the monthly salary, there are other factors that affect your new car loan eligibility. These include credit score, existing debts, and the loan amount.
