The following are the criteria to get a car loan from the State Bank of Travancore:
- Individuals who have been in their jobs for a minimum of two years and get a regular salary
- Any other individual with a regular income
- Any employee of a private sector company, state or central government, corporations, public sector companies, insurance companies and banks
- An individual getting a regular pension
- An individual with minimum two years’ experience in the defense services
- Anyone who has filed income tax returns for minimum two years.
Factors Determining Eligibility of State Bank of Travancore Car Loan
Car loans from State Bank of Travancore come with many benefits but one has to be eligible to get it. There are some factors which have an effect on the eligibility criteria of the bank. Some of these are:
- Before processing your car loan application, the bank does an evaluation of the credit score. By doing this, the bank is able to do an analysis of the creditworthiness of the loan applicant. Your financial history is reflected by your credit score. Factors like closed and current accounts, payment history, duration of credit, etc. affect the credit history. A high credit score is essential and ensures quick approval of the car loan.
- One of the other main factors that have an impact on your creditworthiness and eligibility for the car loan is your income. The bank calculates the debt income ratio which is ratio that reflects the debts the person has with respect to his income in a year. With this ratio, the bank can come to know about the ability of the applicant to repay the loan and also his net worth.
- The amount that is paid as down payment also has an impact on the eligibility of the car loan. Higher the amount paid as down payment, lesser is the burden that will be there of the loan. This also reduces the risk and shows reliability on the part of the applicant. With less loan amount and higher margin, there are higher chances of being eligible for the State Bank of Travancore car loan.
- The eligibility for the loan is higher for a younger applicant than an older one. The bank thinks that older car loan applicants have more risks involved in outflows and income. Their chances of getting the loan increases if they have high net worth and they take less loan amount or have shorter loan tenure.
- When an applicant takes the loan for shorter time duration, it implies that he/she will repay the loan quickly. As this case involves low risk, the bank approves the application quickly.
Steps to Increase Eligibility for the Car Loan
Getting a car loan from the State Bank of Travancore comes with many benefits and thus, the following steps can be taken to increase the eligibility for the loan.
- To be eligible for a car loan from the bank, ensure that you pay all your bills and do not default for any credit. Your credit score gets affected by late payments and default in payment and thus, taking care of it is good.
- If you have a guarantor who can guarantee your loan, the bank is more confident and will sanction the loan easily.
- As far as loans are concerned, getting secured loans is better than unsecured loans. Loans like personal loans and credit cards are not considered favorable by the bank as they are unproductive payouts. Having a balance of the two is good if you want a car loan.
- Apart from the hypothecation of the car, giving a guarantee to the bank is very helpful and will help you in getting the loan easily.
- If you have been a guarantor for anyone’s loan or if you have joint accounts, you should keep a close watch in the activities of these accounts as this will also have an impact on your credit score and creditworthiness.