Common Questions Before Opting For A Car Loan Offer

20 February, 2024

The dream of owning a car in India is no longer a distant aspiration, thanks to the availability of Car Loans. Many financial institutions offer Car Loans to help individuals purchase their dream vehicles. However, before getting a Car Loan, it is essential to have your questions answered and understand the nuances of the process. Read on to explore seven common questions people often have when considering a Car Loan offer in India.

1. What Are The Eligibility Criteria For A Car Loan?
   
   Lenders in India have specific eligibility criteria that applicants must meet, such as:
   
   

• You should be in the 21-60 years of age (salaried) and 65 years age group (self employed).

• The minimum annual income for Xpress Car Loan is ₹300,000.

• You should be stably employed with the same company/business for at least two years.

• You should provide the necessary ID, address, and income proof documents to the lender.
  
  

2. How Does Your Credit Score Affect Car Loan Approval?
   
   Lenders use your credit score to assess your creditworthiness and determine the interest rate for your loan. A higher credit score usually translates to a lower interest rate, while a lower score might result in a higher interest rate. Therefore, it is important to maintain a good credit score by paying your loans and Credit Card dues on time and not defaulting or making late payments.
   
   

3. What is the Minimum CIBIL Score Required for a Car Loan?
   
   HDFC Bank Xpress Car Loan prefers you to have a CIBIL score of 730 or higher for Car Loan approval. Such a score gives you leverage while negotiating loan terms.
   
   

4. What Interest Rates Can I Expect on a Car Loan?
   
   Interest rates on Car Loan in India vary widely. They are influenced by factors like market conditions, the lender’s policies, and your creditworthiness. However, if your credit score is good, and if you comply well with other eligibility factors, you may get a loan offer with a lower interest rate.
   
   

5. How to Check Credit Score Before Applying for a Car Loan?
   
   You can obtain a free credit report once a year from credit bureaus like CIBIL, Experian, or Equifax. You must review the report for any discrepancies and address them promptly. A clean and accurate credit report enhances your chances of getting your Car Loan approved at favourable terms.
   
   

6. What Role do Loans and Credit Cards Play in Getting My Car Loan Approved?
   
   HDFC Bank assesses your debt-to-income ratio, which is the ratio of your monthly debt payments to your monthly income. Before applying for a Car Loan, consider paying off or reducing your existing debt, to improve your chances of loan approval.
   
   

Get Instant Car Loan Online From HDFC Bank

Are you in the market for a brand new car? If yes, you can consider HDFC Bank as your Car Loan partner. HDFC Bank Xpress Car Loan provides convenient and affordable financing solutions for individuals looking to purchase their dream vehicles. With competitive interest rates and easy application processes, HDFC Bank makes car ownership more accessible throughout India.

*Disclaimer: Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Credit at sole discretion of HDFC Bank Ltd. Other charges and taxes as applicable. The offer is unconditionally cancellable without prior notice. Interest rates are subject to change. Please check with your RM or closest bank branch for current interest rates.