Applying for a Car Loan can be an overwhelming experience, especially if you are buying your first car. Follow these seven simple steps and improve your chance of getting the Car Loan you want.
#1: Pay your debts on time
All banks like customers who pay their dues on time. If you already have a loan, such as a Home Loan or Personal Loan, make sure you pay your EMIs on time. Same goes for your Credit Card bill.
Not only will you avoid high penalties, but this clean record will also help convince your bank that you are credit-worthy and likely to pay your instalments on schedule.
#2: Improve your credit score
If you have a low credit score (such as the CIBIL score), you can fix it by ensuring you have closed previous loans and by addressing any errors in the report.
Meanwhile, use the credit limit on your Credit Card prudently. In fact, a good practice would be to ask your Credit Card company to increase your credit limit. This may have a positive impact on your score.
#3: Research eligibility criteria
Each bank has its own eligibility criteria for Car Loans, such as minimum income requirements and maximum loan amount.
Study the criteria of various banks and ensure you are the right match for the type of applicant they want.
Check your eligibility for a Car Loan from HDFC Bank.
#4: Arrange down payment and documents
Some banks expect you to pay around 15 to 20 percent of your car’s value, while they finance the rest.
Make sure you have the funds in place before you apply. HDFC Bank Car Loan comes with 100% finance on new cars, so you don’t have to worry about down payment.
Refer to the bank’s website for the list of required documents and keep them ready. This will decrease chances of your application being rejected.
Check documentation for a Car Loan from HDFC Bank
If you want to Prepay Your Car Loan, you can read more here.
#5: Buy a car from a reputed dealer
Many dealers have tie-ups with banks and getting an auto loan will be easier if you buy from an outlet that has a tie-up with your bank.
#6: Apply to your existing bank
If you already hold an account, it is much easier to convince the bank to give you a loan, because they are already familiar with your credit-worthiness. HDFC Bank offers select pre - approved customers instant loans with minimal documentation.
To research and compare cars and seamlessly apply for a hassle-free loan, visit the car portal of HDFC Bank.
Apply for an HDFC Bank Car Loan here now!
* Terms & conditions apply. Car Loan disbursal at sole discretion of HDFC Bank Ltd. 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.
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