Central Bank car loans have a number of advantages that make it a great choice for people who wish to buy a car. However, there are a number of factors that affect not only an applicant’s eligibility for a car loan, but also their overall car loan amount eligibility. To be considered as eligible for a Central Bank car loan, an applicant must fulfill the following requirements:
- Applicant must be over 18 years of age
- Applicant should have a regular source of income, i.e. they should fall into one of the following categories:
- Self-employed applicants
- Independent entrepreneurs
- Permanent salaried employees
- NRIs can open an account only jointly with a resident of India who is related to the NRI.
- Farmers can also fulfill the Central Bank car loan eligibility criteria. This is irrespective of their land holding or whether they are engaged in agricultural activities in terms of production, or in any other allied activities.
- The vehicle to be bought should be kept in India only
- Applicant should fulfill income requirements
- Salaried Persons: the gross monthly income of applicant should be over Rs.20000
- Self-employed: the gross annual income of the applicant should be over Rs.240000
Factors that can affect the Central Bank car loan eligibility
An applicant’s eligibility for Central Bank car loan can be affected by a lot of factors. These factors about the requirements for Central Bank car loan can affect the eligibility negatively as well as positively and will help the bank decide on a number of features and deals on car loans, like the loan amount, the offered Central Bank car loan interest rate, etc.
- The Central Bank car loan EMI that is applicable on a particular car loan from Central Bank should not exceed 50% of the gross monthly salary of the applicant. If an applicant’s major part of the monthly salary would have to be paid as a car loan EMI, it would undermine the repayment capabilities of the applicant and it would lead to the applicant being considered as a risky investment option by the bank.
- The car loan from Central Bank is capped at 90 % of the car’s ex-showroom price
- The applicant’s eligibility for Central Bank car loan is also affected by the existing EMI responsibilities of the applicant. Any EMIs that the applicant is already paying will of course reduce his useable monthly salary, which, as mentioned earlier, will increase the risk of lending to the applicant.
- The CIBIL score of an applicant is an important factor. But when an applicant will apply for a Central Bank car loan, they will be offering the hypothecation of the purchased vehicle as security to the bank; the credit score will not play an important role in the approval of a Central Bank car loan. However, if the applicant has a clean repayment history and a good CIBIL score, it will only help in quicker approvals as well as speedy processing of the Central Bank car loan. A good score will definitely assist in increasing an applicant’s eligibility.
- A number of factors can assist an applicant in increasing their eligibility for a Central Bank car loan. Including an immediate family member as a co-applicant will cause the two incomes to be clubbed, thereby increasing the eligibility of an application. Another way is to choose a longer repayment tenure in order to avail a lower car loan EMI, which will decrease the risk involved in lending to an applicant.
Check your Central Bank Car Loan Eligibility
There are a number of factors that affect the Central Bank car loan eligibility of an applicant. These are the same factors that can also have an impact on the applicant’s total car loan amount eligibility, as well as the offered Central Bank car loan interest rates. Frankly, a rejected car loan application does well for no one. So, it is always a good idea to check your eligibility for Central Bank car loan before you actually apply for a car loan online. This can help you vet out what your application lacks and work towards improving it.
Calculate your Car Loan at PaisaBazaar.com prior to applying for the car loan to know the criteria that you need to fulfill for a Central Bank car loan.
How it works
- Step 1: Select the type of car you are looking for –Used or New
- Step 2: Enter or select from the drop down menu, the city where you are living
- Step 3: Enter or select from the drop down menu, the make of the car that you wish to buy then select the model and the variant of the car that you wish to buy
- Step 4: Enter the details about when you want to buy the car
- Step 5: Next, select the amount that you wish to borrow as a Central Bank car loan
- Step 6: Select the suitable tenure for a car loan that you wish to apply for
- Step: Select your form of employment. The salaried individuals will need to fill in the name of their employer, while the businessmen and the self-employed professionals will have to select their profession type
- Step 7: Enter gross annual income
- Step 8: Enter the amount of EMI that you are already paying at present
- Step 9: Select the bank that you have a bank account with at present
- Step 10: Finally, enter your personal details, like your name, gender, date of birth, email id, mobile number, etc. and click on ‘View all Offers’ to see the loans that you are eligible for.