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Car Loan Eligibility Calculator Jul 2021

Car Loan Check Car Loan Eligibility 2021

Last Updated 26th Jul 2021

Profession Salaried & Self-Employed Individuals & Professionals
Eligible Age Min 21 years and Max 70 years
Minimum Income for Loan Eligibility ₹ 10,000
  • Car Loan eligibility depends on salary. Higher the income, higher the eligibility.
  • Assessment of repayment capacity after paying existing fixed expenses and EMIs defines your eligibility.
Apply for Car Loan @ 8.65%*

Car Loan Eligibility for Banks in India

Bank Car Loan Interest Rates Age of the Borrower Car Loan Eligible Loan Amount Maximum Loan Tenure
HDFC Bank Car Loan Eligibility 13.75% Fixed 21- 60 Years 100% of ex-showroom price 7 Years
SBI Car Loan Eligibility 7.50% Floating 21- 67 Years 85% of on-road price 7 Years
ICICI Bank Car Loan Eligibility 7.90% Fixed 18- 65 Years 100% of ex-showroom price 7 Years
Axis Bank Car Loan Eligibility 8.65% Fixed 21- 60 Years 100% of on-road price 7 Years
IndusInd Bank Car Loan Eligibility 8.00% Fixed 21- 65 Years 85% of ex-showroom price 5 Years
Kotak Bank 6.50% Fixed 21- 65 Years 90% of ex-showroom price 5 Years
PNB 7.55% Floating 21- 65 Years 85% of on-road price 7 Years
Union Bank of India 7.40% Floating 18- 65 Years 85% of on-road price 7 Years
Central Bank of India 7.25% Floating 18- 65 Years 90% of on-road price 7 Years
Andhra Bank 7.40% Fixed 18- 75 Years 85% of on-road price 7 Years
IDBI Bank 7.50% Fixed 18- 70 Years 90% of ex-showroom price 7 Years
Federal Bank 8.50% Fixed 21- 60 Years 95% of ex-showroom price 7 Years
Bank of India 7.35% Floating 21- 65 Years 85% of on-road price 7 Years
Bank of Maharashtra 7.55% Floating 18- 60 Years 90% of on-road price 7 Years
Corporation Bank 7.40% Floating 18- 75 Years 85% of ex-showroom price 7 Years
Indian Bank 9.65% Floating 21- 65 Years 85% of on-road price 7 Years
OBC 7.55% Floating 18- 65 Years 85% of on-road price 7 Years
Bank of Baroda 7.25% Floating 21- 70 Years 90% of on-road price 7 Years
United Bank of India 8.60% Floating 21- 70 Years 85% of on-road price 7 Years

Car Loan Eligibility Criteria

To avail of a car loan, you need to fulfil the essential eligibility criteria as mentioned below:

  • Age criteria : If you are a salaried individual or self-employed professional, you should be aged between 21 to 70 years.
  • Income criteria : In the case of a salaried individual, your minimum net annual income must be ₹90000. To avail of a car loan, a self-employed professional and businessman should have a net annual income of upto ₹ 1 cr p.a.
  • Credit score : A car loan requires you to have a high credit score. Having a credit score of 650 or above can help you avail of car loans at low rates.
  • Loan Amount : Most lenders provide car loans for up to Upto 85% of on-road price. In addition to that, banks limit the maximum loan eligibility at 0.6 of net monthly income.
  • Current EMI’s : If you are already paying an EMI for any other loan, it might affect your car loan eligibility. You should pay all their previous dues before applying for a new loan.

How to Check Car Loan Eligibility?

You can check your car loan eligibility by contacting the bank or NBFC that you wish to apply for a car loan. However, ensure that you do not apply at multiple places for a loan and only check the eligibility as it will affect your Credit Score. Various banks and NBFCs provide the option of checking Car Loan eligibility online at their websites.

Factors that Affect Car Loan Eligibility

Various factors affect your car loan eligibility:

  • Value of the Car : One of the crucial factors that affect your car loan eligibility is the car's value. While some banks express the maximum loan amount as 100 % of ex-showroom price, some link it to the on-road price. The Ex-showroom price is the price of the car, including excise duty but excluding local duties and statutory charges. On-road price is the price you pay for the car, including the ex-showroom price and cost of registration, insurance, octroi, municipal entry tax, road tax and any accessories. The on-road price tends to be 15-25% more than the ex-showroom price and may vary from city to city. Banks provide a maximum of upto 100% of the ex-showroom price and 75% of the on-road value of the car.
  • Monthly Income : Next is your annual income. Higher-income means better chances of getting a higher loan amount and vice versa. It also indicates the maximum EMI you can pay on your car loan.
  • Credit Score : A credit score is one of the crucial factors that determine your creditworthiness. A higher credit score means you will be able to repay the loan on time, and a lower score depicts that you might default on your loan.
  • Relationship with the lender : Having a good existing relationship with the lender also affects your eligibility to avail of a car loan at low rates.

How to Improve Car Loan Eligibility?

Here are some tips that can help you to improve your car loan eligibility:

  • Applying with a co-applicant : To increase your chances of availing of a car loan, you can add a co-applicant with a good CIBIL score and income. Taking a joint car loan will increase your income and eligibility to borrow more money.
  • Clearing your existing debts : If you have not cleared the previous credit card dues or any debts on running loans, it will affect your car loan eligibility as lenders assess your debt to income ratio to estimate your repayment capacity. So, you must pay off your existing dues before you apply for a new loan.
  • Complete market research : Before applying for a car loan, you must complete market research on the car loan rates. It is because floating car loan rates are linked to external factors, and a change in these rates will also impact your car loan interest rate and thus your eligibility for a car loan.
  • Mention other income sources : Finally, it is essential to mention all secondary sources of income such as rent and any other, if any, to increase your eligibility for a high loan amount as higher-income enhances your eligibility.

FAQs

What is the eligibility of a car loan for self-employed and salaried individuals?

If you are a Salaried individual or self-employed professionals and businessmen between the age group of 21 years and 60 years you can avail a car loan for a period of 1 year to 7 years. Banks provide car loans up to 100% of the ex-showroom price of the loans based on the value of the car and the amount of EMI you can pay on car loans.

How much car loan can I get on ₹ 20,000 salary?

The amount of car loan you can get on ₹ 20,000 salary will depend on the ex-showroom price of the car and whether it is a used car or a new car. Banks usually provide car loans up to 100% of the value of the car. You can check the eligibility criteria for different banks using an online eligibility calculator.

How is car loan eligibility calculated based on salary?

Your car loan eligibility is based on FOIR, that is Fixed Obligations to Income Ratio. It usually is 0.6 to 0.65 in most cases. Every bank has set minimum income eligibility for getting a car loan, and it varies from bank to bank. However, higher your salary is, you can get a higher loan amount at a low-interest rate.

How do I know if I qualify for a car loan?

You can calculate the car loan eligibility using the Car loan eligibility calculator. Most of the banks such as ICICI Bank, HDFC Bank, Kotak Bank allow you to check your eligibility using an online eligibility calculator available on their website by entering income details and the value of the car.

How much CIBIL score is required for a car loan?

While every bank has different eligibility criteria and minimum requirements of credit score, car loans generally require a high credit score. A credit score of 650 is considered as an ideal score for availing a car loan.

How can I lower my car payments without refinancing?

Prepayment is one method if you want to reduce your monthly payments on the car loan. It will help if you pay the more substantial amount initially. Along with the prepayment, you can request the lender to lower your interest rate based on your past repayment record.

How many car loans can I have?

You can have multiple car loans; however, banks will evaluate your EMIs to income ratio. If you have an existing car loan and are already paying 50% of your income on EMI, then banks may not grant you another credit.

What should be the minimum and maximum age to get a car loan?

To avail a car loan, salaried and self employed individuals and professionals should have a minimum and maximum age of 21 & 70 respectively.

Can I get a car loan without a salary slip?

Yes, you can avail a car loan without a salary slip or any other income documents if you have a good credit score. Apart, in case you do not have a salary slip, you can apply for a car loan with your existing bank, that is well aware of your income to expenses ratio.


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*Terms and conditions apply. Credit at sole discretion of lender, which is subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and collected from public sources. Read More
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