CREDIT SCORE AND CAR LOAN
DOCUMENTS REQUIRED FOR AVAILING OF A CAR LOAN:
If you want to be eligible for a car loan, you should carry all the mandatory documents which are mentioned below: -
Identity Proof- The applicant needs to have valid identity proof. It can be a Driving License, Aadhaar Card, PAN Card, passport or any other document that the government issues.
Age Proof- The age of the applicant has to be a minimum of 18 years. He needs to have a document that states his age clearly. It can be a Birth Certificate, Driving License, Ration Card, Passport, School leaving, College Leaving Certificate or any other document that the government issues.
Address Proof- It can be an Aadhaar Card, PAN Card, etc. It is mandatory to document the government issues, and that has the present age of the applicant mentioned in it.
Income Proof- There are mainly two types of employment - Salaried and Self-Employment. The salaried individuals have to submit the salary slips of the last six months, bank statements of the last three months, Form-16, etc. And the self-employed individuals have to submit the bank statement from the last three months, P&L accounts, ITR, balance sheets, etc.
Signature Verification- It is required to ensure that your signature is unique. Signature verification is needed for this.
Recent Photographs- The applicant should carry 2-3 passport size photographs with him.
CAR LOAN AND CREDIT SCORE: -
A Car Loan or an auto loan is a secured loan. A secured loan means a lot where the security is provided to the bank or to the money lender, from which you have taken up the loan. Here, the car acts as a security or collateral to the bank. Till the successful completion of repayment of loan, the ownership of the car is with the bank or the money lender. A credit score plays an important role in the selection of your loan application.
The money lender decides if he wants to give you a car loan or not on the basis of your credit score. A credit score is used by the bank or the money lender to check and to understand your creditworthiness. If your credit score will be higher, then the money lender will sanction your loan. A credit score tells about all the previous loans that you have taken up and how you dealt with them and how many loans you have taken at present. If you want to apply for SBI Car Loan, then your credit score has to be between 689 to 756.
WHAT SHOULD YOU KNOW?
DO YOUR RESEARCH: - You should research the rate, fees and the terms and conditions offered by different banks to understand the whole thing and then, choose the bank or the lender. This is because even a slight difference in the rate of interest or the other terms may result in a huge difference in future.
PROVIDE COMPLETE DOCUMENTATION: - After deciding the money lender or the bank in which you want to apply for the loan, you should visit their website and check the documents that are needed. Also, check for the validity of your documents and get renewed if the expiry is near such as for a driving license,etc. Try not to give any chance to the bank or the money lender to reject your loan application.
CHOSE THE REPAYMENT TENURE WISELY: - You can use the car loan EMI calculator to check the amount of the EMIs that you will have to pay every month after applying for a car loan. You should calculate the tenure of the repayment and the amount of EMI that you are comfortable with and then, apply for the same.
CHECK OFFERS AND DISCOUNTS: - Most of the banks and money lenders offer special discounts during the festival season such as during Diwali. There can be other occasions too when the lenders can come up with different offers and discounts.
