Four Wheeler Loan Interest Rate | Eligibility for Car Loan, CIBIL Score & Documents

It’s tempting to buy a new car, whether it’s an upgrade, a first car, or a family vehicle. Whatever the reason, obtaining a Four Wheeler Loan simplifies the process. Car loans are typically three to five years in length, but certain lenders may give loans up to seven years. A longer loan term may result in lower equivalent monthly instalments (EMIs), making the automobile appear more inexpensive, but you will end up paying more in interest. Remember that a car is a depreciating asset, so taking out a larger loan might not be the greatest option. However, if you take out a short-term auto loan, the EMIs will be high, and non-payment will result in a blot on your credit report.

Four Wheeler Loan

Top Banks’ Four Wheeler Loan Eligibility Criteria

You must meet specific eligibility criteria when applying for a new Four Wheeler Loan, and these criteria can vary from lender to lender. Let’s take a look at some of the leading lenders’ requirements:

Axis Bank Car Loan Eligibility Criteria

Salaried Individuals
Minimum Age limit21 years
Maximum Age limit70 years at the time of loan maturity
Minimum Annual Income neededRs.2.4 lakh
Employment StatusApplicant Should be in continuous employment for at least 1 year
Other Criteria to be fulfilledTo confirm income eligibility, the applicant must be able to present Form 16 and the most recent pay stub.
Who is Eligible?Applicants who have had a salary account with Axis Bank for the past three months are eligible. Applicants employed at MNCs, public and private limited companies, and permanent employees of state/central government/PSUs/reputed colleges/schools
Self-Employed Individuals
Minimum Annual IncomeRs.1.8 lakh – Rs.2 lakh
Maximum Age75 years at the time of loan maturity
Minimum Age18 years
Employment/Business StatusShould be in the same line of business for at least 3 years
Other CriteriaShould be able to produce latest Income Tax Returns to prove income eligibility

Two Wheeler Loan Interest Rate

State Bank of India Car Loan Eligibility

CategoryMinimum Income CriteriaMaximum Loan AmountAge Criteria
Employees of central and state government, public sector undertakings (PSUs), private companies, reputed establishmentsRs.2.5 lakh p.a.48 times of the net monthly income21 years to 65 years
Self-employed professionals, businessmen, partnership/proprietary firmsRs.3 lakh p.a.4 times gross taxable income or net profit21 years to 65 years
Individuals involved in agricultural and allied activitiesRs.4 lakh p.a. (can include co-applicants income)3 times of net annual income21 years to 65 years

ICICI Bank Four Wheeler Loan Eligibility

You can use the ICICI Bank’s ‘Car Loan Eligibility Calculator‘ on their official website to determine your eligibility for a car loan. To assess your eligibility, you’ll need to provide information like your phone number, place of residence, type of job, automobile model you want to buy, ex-showroom price, and so on.

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HDFC Bank Car Loan Eligibility

The following individuals/entities are eligible for an HDFC Bank car loan:

  • Self-employed sole proprietors
  • Self-employed individuals/professionals at partnership firms
  • Salaried individuals
  • Self-employed individuals/professionals who own private companies
  • Self-employed individuals in public-limited companies including directors
Salaried Applicants 
Minimum Age limit21 years at the time of loan application
Maximum Age limit60 years when the loan tenure ends
Job StabilityShould have worked continuously for 2 years and at least 1 year with the current employer
Minimum Annual Income requiredRs.3 lakh
Other Criteria requiredShould have a post-paid mobile/telephone
Self-Employed Individuals/Professionals (Sole Proprietorship) 
Minimum Age limit21 years at the time of loan application
Maximum Age limit65 years when the loan tenure ends
Business StabilityShould have been in the same line of business for at least 2 years
Minimum Annual Income requiredRs.3 lakh
Self-Employed Individuals/Professionals (Partnership Firms/Private Limited Companies/Public Limited Companies)
Minimum Annual Income requiredRs.3 lakh

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Four Wheeler Loan Eligibility Calculator

Many institutions, including ICICI Bank, HDFC Bank, Kotak Mahindra Bank, and others, have a ‘Car Loan Eligibility Calculator’ that allows you to determine your eligibility for a car loan. On the bank’s official website, you may find this tool. The tool will verify if you are eligible for a car loan after entering basic information such as your contact number, residence stability, kind of employment, car model and ex-showroom pricing, and so on. The information you are needed to provide will differ from bank to bank, so you should check the eligibility of specific lenders before applying for a car loan.

Factors Affecting Four Wheeler Loan Eligibility

Eligibility for a Car Loan is determined by Several Factors

  • Credit Score: Lenders look at your credit score to determine your repayment capabilities and payment history for past or current loans. If you have a credit score of 750 or higher, your lender will believe you are responsible in terms of repaying your loan on time, and will most likely accept your loan application quickly.
  • Type of Car: Your car loan eligibility is determined by the type of car you intend to buy with car finance. According on the characteristics and specifications of the car, each model will have a unique resale value. As a result, if the car you want has a high market value, your car loan eligibility will be high as well. Because a car is an asset whose value depreciates over time, its resale value is considered for determining eligibility.
  • For applicants, employment status and business longevity are important considerations. If a salaried employee is asking for a car loan, he or she must have worked for a minimum of one year and a maximum of two to three years in his or her current position. If the candidate is self-employed, they must have worked in the same business for at least two to three years.
  • Applicant’s income: When you apply for an auto loan, your lender will look at your income to see if you can afford to pay the EMIs on time. If you have a greater salary, the lender will believe that you will be able to repay the loan without issue. If your salary is a little lower, though, your lender may be concerned about your ability to pay all of your auto loan EMIs on time. As a result, the lender may offer you a smaller loan.
  • Your Employer’s Reputation: Your employer may be able to assist you in increasing your vehicle loan eligibility. If you work for a Fortune 100 firm or another high-ranking company, for example, your loan eligibility will improve. You will be able to obtain a larger loan amount to finance the purchase of your car in this manner. If you do not work for such a corporation, however, it is necessary that you generate a significant salary in order to be accepted for a larger loan amount.
  • Relationship with Your Lender: If you already have an account with a bank and have a strong relationship with them, you can work out a deal with them to have a larger loan approved at a cheaper interest rate.

Doctor Loan Eligibility 

Car Loan Documents for Salaried Professionals

DocumentRequirement
Identity ProofAadhaar cardPAN cardPassportDriving LicenseVoter ID
Address ProofAadhaar cardVoter IDPassportUtility bill (Electricity, water, or telephone)The applicant’s name must be present in the ration card or utility bill. Driving LicenceFamily card (ration card)Life insurance policy
Age ProofBirth certificate Std. 10 mark sheet School transfer certificateAadhaar card
Income ProofSalary slips Income tax return document Form 16
Bank Statement3 to 6 months bank statement
Signature Verification ProofApplicants must complete out separate documents with their signatures at banks.
Proforma InvoiceThis document offers a dealer’s pricing quote for the car that the applicant has chosen. The loan amount will be determined by the car’s pricing.

Car Loan Documents for Self-Employed Individuals

DocumentRequirement
Identity ProofAadhar card Voter ID PAN card Driving license Passport
Address ProofAadhar card Passport Voter ID Driving license Ration card Utility bill (telephone, electricity, or water) Life insurance policy
Age ProofBirth certificate School transfer certificate Marksheet Aadhaar card
Bank Statement3-6 months bank statement
Business Ownership ProofThe following can be presented to establish that the business is open for business: Office address proofUtility billMaintenance bill Additionally, the applicant must also provide a copy of the business registration license.
Proof of IncomeIncome tax returns for up to 2 years Profit-loss statement Audited balance sheet
Signature Verification ProofMost banks have separate forms to prove the signature of the individual.
Proforma InvoiceAlong with the other documents, a proforma invoice showing the vehicle’s price must be filed to indicate the intended loan amount. Most banks will lend up to 95% of the car’s purchase price.

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