Know All About Income Criteria for Getting a Car Loan

12 February, 2024

A Car Loan can help you buy your dream car. However, you need to fulfil the bank’s eligibility criteria to secure the loan. Whether you are a salaried individual or a self-employed professional, your income plays a crucial role in determining the amount of Loan you can secure. In this comprehensive guide, we have provided complete information on eligibility, and minimum income requirements for a Car Loan.

Eligibility Criteria For Car Loan

Banks categorise Loan applicants into two groups: salaried individuals and self-employed individuals. Here are the criteria for each category:

Salaried individuals:

Employment status: Applicants must be employees of private limited companies or work in public sector companies, including state, central and local entities.

Age: Applicants’ age should be a minimum of 21 years old at the time of applying for the loan, and they should not be older than 60 when the Loan tenure ends.

Job tenure: A minimum of two years of continuous employment is required, with at least one year spent with the current employer.

Income eligibility: Salaried individuals must earn a minimum annual income of ₹3,00,000.

Self-Employed professionals

Individuals with sole proprietorship: If you are a self-employed individual running a proprietorship firm, here are the eligibility criteria you need to fulfil for a Car Loan:

Age: You should be at least 21 years old when you apply for the loan, and your age should not exceed 65 after the end of the loan tenure.

Business tenure: You must have been operating your business for at least two years.

Income: Self-employed individuals in sole proprietorship businesses should have an annual income of at least ₹3,00,000.

Self-Employed professionals with Partnership Firms: For self-employed individuals in partnership firms involved in trading, manufacturing, or providing services, here are the eligibility criteria:

Turnover: Your business should have a minimum turnover of ₹3,00,000 per annum.

Private limited companies: If you own a private limited company engaged in providing services, manufacturing, or trading, your company should have an annual income of at least ₹3,00,000.

Public Limited Companies: Directors of public limited companies involved in trading, manufacturing, or offering services should have a minimum annual income of ₹3,00,000.

To secure a suitable Car Loan, a good credit score is crucial. A high credit score can help you qualify for better Loan deals. If your credit score is less than 730, consider improving it by making timely debt payments.

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HDFC Bank gives you 24/7 online access for your Loan applications with no documentation requirements. You can get your loan approved quickly with our completely digitalised application process and enjoy instant disbursal of the Loan amount. Apply for an HDFC Bank Xpress Car Loan and get your loan disbursed in just a few clicks.

​​​​​​​*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. Auto Loan at the sole discretion of HDFC Bank Limited. Loan disbursal is subject to documentation and verification as per Bank's requirement. Interest rates are subject to change. Please check with your RM or closest bank branch for current interest rates.