When you fill your basic details into Cars In Budget car loan eligibility tool, we provide you with all available options based on the information submitted. After you get the complete list of lenders who might suit your specific requirement you can compare the various loan options based on tenure, interest rate, maximum loan amount as well as other factors. You can then go ahead and zero in on the offer that is best suited to your specific requirement.

Yes, car loan is offered for pre-owned cars. But, the interest rate for such a loan would differ from that of a new car and it would only cover the price of the car itself. Other costs such as transfer of registration, etc. will have to borne by you.

The maximum loan amount approved may vary from one bank to the other. Usually, banks approve loan amounts that range from 80%–90% of the car’s on-road price. Few banks even lend 100% of the car’s ex-showroom price. In addition to these criteria, the percentage of financing offered depends on the price, type of car (standard/ premium) and whether you are applying for a new or pre-owned car.

Like any other loan that you apply for, a car loan application requires self attested supporting documents such as income (last three pay slips/last acknowledged ITR), address and identity proof documents along with you PAN card. Other documentation requirements, if any, tend to differ from one lender to another.

The tenure of a typical car loan ranges from 1 year to 5 years. The shorter the loan tenure, the higher is the EMI payable. Currently, a small number of lenders are engaged in providing car loans for longer durations of up to 7 years also.

A loan guarantor or a co-borrower is only required if you are unable to meet the eligibility criteria stated by the lending institution such as monthly income, age or credit score. Otherwise you can apply for a car loan on your own.

The used car loan would only cover the price of the car itself, other costs as transfer of registration, etc. will have to borne by you. Typically lenders provide car loan up to 75% of the user car price , with varied interest rates based on documents submitted, car condition etc.

Though most lenders do not specify a minimum salary requirement, your loan application may be rejected in case your salary does not exceed a predetermined threshold level as required by the internal requirement of the bank. In such cases applying with a co-borrower might be a better idea to increase your chances of successfully applying for a car loan.

Your loan application may be rejected if you have a bad credit score, have defaulted on your repayments or applied for and been rejected for loans multiple times, etc. Also, you should meet the bank’s eligibility criteria such as minimum income level, age, previous relationship with the bank, etc. to get your loan approved.