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Tuesday, September 24, 2019

What is the Eligibility Criteria to Get a Loan Against Vehicle?

Today, owning a car is not a luxury but a necessity. With car manufacturers offering different types of vehicles, finding your dream car is not very difficult. However, you may have to compromise on your choice due to financial constraints. With financial institutions providing car finance for used and new vehicles, affordability does not have to be a constraint anymore.
Various lenders offer different features and terms and conditions on car finance. You may research the available options and compare these to make an informed decision.
Following are the basic loan against vehicle eligibility factors:

Minimum: 18 years
Maximum: 65 years
Monthly income
Minimum: INR 10,000
Borrower profile
Salaried, self-employed, or farmer
Residence stability
At least one year at the current location
Car type
New or used
Existing monthly installments
Affects loan against vehicle interest rates and credit score
You may apply for a loan either for a new vehicle or for a pre-owned car. If you are a farmer, you may avail of a loan for agricultural vehicles, such as trucks and tractors.
Vehicle loan eligibility calculator

Your eligibility to apply for a loan against vehicle depends on several factors. Some of these include your income, value of the car, existing Equated Monthly Installments (EMIs), and age.
You may take help of an online calculator to determine your eligibility for a loan against the car. The calculator considers multiple factors that determine eligibility to give you an approximate idea on the amount of loan that may be sanctioned by lenders. Determining your eligibility and the expected loan amount with an online calculatoris helpful in reducing your efforts of checking the same with multiple lenders. It is a time and cost-efficient way to understand your eligibility.

In case you are buying a pre-owned vehicle, the eligibility criteria may slightly vary. Generally, the value of a used car is lower than a new vehicle, and the lenders may reduce the minimum income requirement while determining your eligibility.

Lenders may also offer customized loan packages that make the entire procedure quick and hassle-free. Some of the key benefits and features of car finance are listed below:
1.      Quick and easy procedure
The entire procedure of processing, documentation, and approval is quick and hassle-free. There are no delays due to technical glitches ensuring that you drive your dream car at the earliest.
2.      Higher loan amount
Some lenders offer up to 100% of the ex-showroom price. This means you do not have to pay any down payment through your personal sources, which reduces your initial financial burden.
3.      Flexible repayment
The repayment period on your vehicle loan may be as long as five years. This ensures that you do not face any liquidity crisis while servicing the loan. Additional flexibility is available through pre-payment and loan swaps.
4.      Minimal documentation
Contrary to common perception, the minimal documentation is required. Moreover, trained and professional customer executives are available to assist you to complete the full set of all loan against vehicle documents that are required, thereby ensuring no delay.All you need is proof of income, identity, residence, and age along with photographs. You may submit these documents online for quicker processing.
Lenders also have tie-ups with vehicle dealers and offer the best deals on car finance. Check your eligibility today and bring your dream vehicle home.

1 comment:

  1. This is why getting used tractors are very cost effective because you are getting quality at an affordable price. Those looking for tractors usually look at the local classifieds where there is usually a limited supply. compact tractors


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