Understanding your Used Car Loan eligibility is the first turn in the journey toward acquiring a pre-owned vehicle. With financial solutions starting from ₹1 lakh and extending up to 95% of the vehicle's valuation, getting behind the wheel of a car that matches your dreams and budget is made accessible. Understand the Used Car Loan eligibility and gear up to make an informed decision.
Eligibility
Salaried individuals who are eligible for a Used Car Loan
- Minimum 21 years of age
- Maximum 60 years of age at maturity (conditions apply)
- Minimum net annual salary of Rs 2,40,000 p.a. for certain models and Rs 3,00,000 p.a. for specific models
- Income elgibility based on latest salary slip/form16/ last 3 months bank statements
- Minimum 1 year of continuous employment
Self-employed individuals who are eligible for a Used Car Loan
- Minimum 21 years of age
- Maximum 65 years of age at loan maturity
- Minimum Net Annual Business income of Rs. 2,00,000 p.a. for selected models and Rs. 3,50,000 p.a. for others.
- Minimum 2 years of employment in the same line of business
Self-employed non-individuals who are eligible for a Used Car Loan (partnership/huf/pvt ltd/ ltd/ trust/ societies)
- Minimum Net Annual Business income or Rs. 2,50,000 p.a. for selected models and Rs. 3,50,000 p.a. for others
- Income eligibility based on latest 2 years Income Tax Returns and audited financials of 2 years along with computation of income
- Minimum 2 years of employment in the same line of business
Car Loan Eligibility Calculator
Use the Car Loan eligibility calculator to find out whether you can avail of a pre-owned car loan.
Factors that affect used Car Loan eligibility
- Credit score: Your credit score is a reflection of your financial trustworthiness. A higher score can open doors to better loan terms, lower interest rates, and a higher loan amount. Lenders use this as a key indicator to determine the risk involved in lending to you. A score above 750 often unlocks the best loan conditions, including competitive interest rates and a higher borrowing capacity.
- Debt-to-income ratio: This ratio measures your monthly debt against your gross monthly income. Ideally, lenders like to see a debt-to-income ratio below 40%. This means your total monthly debts should be less than 40% of your monthly income. Staying under this threshold indicates you're not over-leveraged, making you a more appealing candidate for a loan.
- Age and mileage of the car: The older a car or, the more miles it has clocked, the more its value depreciates. Lenders often have a cut-off for the age and mileage of the vehicle — typically not financing cars over 5 years old or with over 1,00,000 kilometres. This ensures the loan is backed by a car that's likely to remain reliable and valuable for the duration of your loan term.
