Maintaining a high CIBIL score is equally important, whether it is to be used for a home loan, personal loan, or even car loan. It helps in lowering your car loan interest rates from leading banks/NBFCs, as it depicts your creditworthiness and responsible credit behavior. In the case of individual borrowers, a high credit score is essential to be approved for a car loan, as well as any other type of loan. The following sections discuss key aspects regarding how to achieve and maintain a good CIBIL score for a car loan.
Relevance of Good CIBIL Score for Car Loan
Credit score is a 3-digit numeric which is part of an individual’s CIBIL report. Your CIBIL report, also called the Credit Information Report (CIR), is generated based on the repayment tenure and handling of loans and credit cards in the past. Your CIBIL score sums up how well you have previously handled credit by assigning a number between 300 and 900. A good CIBIL score should be as close to 900 and at least 750 and above. Simply put, the higher your score, the higher your chances of getting a car loan approved, whether for the purchase of a new car or a used car.
But a good credit score will not only improve your chances of being approved for a car loan but can also provide you better access to special offers. Such offers can include 100% car financing i.e. zero down payment, lower than usual processing fees, special low interest rates, etc.
Also Know: What are the Factors that Affect your CIBIL score?
While a good CIBIL score is desirable to avail a car loan easily, a comparatively low CIBIL score, such as 650 or below does not automatically make you ineligible for a car loan. There is no minimum CIBIL score for car loan criteria as defined by lending institutions. However, a low score can typically result in car loan offers that have a higher interest rate or a higher down payment requirement.
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How to Apply for a Car Loan with CIBIL Score?
Following is the step-by-step procedure to apply for a car loan:
Step 1: Fill out the car loan application form at Paisabazaar.com
Step 2: Check the car loan eligibility and select your preference from various categories, such as car type, city, brand, amount, repayment tenure, employment status, income, desired EMI, salaried bank account, and personal details to further click on ”View All Offers”
Step 3: Select the most suitable loan offer or call Paisabazaar’s customer care for assistance.
Step 4: Get instant conditional e-approval as soon as you submit your online car loan application. As part of the application process, we will automatically check your CIBIL score to determine, if it is suitable for availing the car loan of your choice and subsequently forward your application to your chosen lender.