There are so many types of cars in the market that everyone wants to own their own car whether it is a budget car, sports car, family car or even an excursion car. There is a knot between the car loan dealer and the banks now days to offer you a lucrative deal the moment you make up your mind to buy a car. The dealers are ready with the latest car models and the banks and NFBC’s are readily available to offer you a car loan. However, buying a new car involves certain formalities especially when you wish to borrow a loan to buy your new car. Now here comes the question – Whether your Car Loan will be ACCEPTED OR REJECTED! This article is intended to make you sound enough that you never get to hear NO when it comes to your Car loan application.
1. Have a good credit Score:
You may be wondering how your credit score would lay an impact if you wanted to borrow a car loan; the answer is that your credit score forms the basis of your credibility to re-pay the car loan in time. Credit Score is a numeric digit based on which you fall in the category of reliable citizens. Credit score is a calculated based on your credit history i.e. the way you have paid your credit card bills or loan EMIs, the defaults you have made in making payments in time, basically all good and bad financial behaviour is recorded and analysed to ascertain your credit score. So the point to be noted here is make payments in times to have a good credit score.
GOOD CREDIT SCORE = BETTER CAR LOAN OFFER, LOWER INTEREST RATES, MORE OPTIONS
It is also wise to check your credit score before you apply for any type of loan and then face rejection. There are many organisations that offer credit score and credit report which include, Experian, CIBIL, HighMark, etc. However, you can also find your credit score for free at Letzbank.com
2. Good Income:
Having a good income is one way you can easily borrow car loan for purchase of new vehicle, however if you are not earning too well you can also club your partner’s income to increase your eligibility to borrow a car loan. Most of the banks approve car loans for people having a monthly income of Rs.20,000/- per month. A good income also gives an assurance to the lender that you will not make any defaults while making the payments.
3. Good Job stability
If you change your job quite frequently then you are more likely to financially unstable and that is the reason most of the banks look into your job stability to lend you the car loan. Most of the banks see that you have been working with the same organisation for a period of atleast 1 year as your job stability factor to lend you the car loan.
4. Having too many Loans already:
If you have borrowed too many loans also ready and your total EMIs constitute more than 20 to 30% of your salary in such cases there are high chances of you to make default in making payments to the bank. Therefore the lenders are not so comfortable to lend you the car loan if you already have borrowed too many loans.
5. Making silly mistakes while submitting your application:
Any wrong or frivolous information in your application form can lead to rejection of your car loan application. The lender makes the representatives from the bank to visit your residential or official address for the verification of your application form; any discrepancy found during the visit of the representatives can also lead to rejection of your car loan application.
Now that you are aware of all that is to be kept in mind while applying for Car Loan all you need to do is to be careful and cautiously apply for car loans. You can apply for car loans online through Letzbank and avail a waiver on service fee on all applications submitted online.