There was a time when owning a car was a luxury not all could afford to have. Buying a car was a life milestone for everyone who could shell out those huge amounts of money all at once to buy their dream car. With growing times, changing demographics and emerging car loan lenders, for a majority of the Indian middle class, owning a car today is no longer a luxury, but in fact a necessity made possible by taking a car loan.
You cannot imagine living without a car because that would restrict you form going places for work, duties or leisure, hindering a good social and professional life. But with newer technologies and lesser resources, the cost of cars are on a rise, often making it extremely difficult for the average individual to purchase their vehicle outright only using ones savings. Therefore, viewing the huge demand for financing both used and new cars, leading loan lenders in India offer car loans, which are floated products, which enable you to purchase your car and pay off the car loan amount borrowed bit by bit through car loan EMIs or installments.
Car Loan - Checklist to Follow While Applying for it
Getting a car loan is easy through the LoanQubes.com website. You can secure the most appropriate car financing product within a matter of few minutes. The steps involved in the car loan application process are as follows:
- Visit the home page of the LoanQubes.com website and select the Car Loan product from the drop down menu. The page that shows up will have a list of car loan offerings from various banks.
- You can compare the loans and select one that suits your needs. You should check certain parameters such as the amount of loan available, eligibility, interest rate, etc.
- Once you have decided on the loan, click on the “Apply Now” button to initiate the application process.
- Once the application is submitted, you will receive an e-approval form instantly. Your application will also be sent to the bank that you have chosen to take the loan from.
- You will soon receive a call from the bank. You can track your application through email notifications or SMS.
- The bank will validate your eligibility and submitted forms and disburse the loan accordingly.
Car Loan Eligibility Criteria
Almost anybody who fulfills the basic car loan eligibility criteria can apply for a car loan in India. The basic requirements to take up any loan are driven by the age, employment status and other demographical factors of the car loan subscriber along with of course, their repayment capacity. The common requirements, irrespective of the financial institution or loan amount, for an individual to be eligible for a car loan approval include:
- The borrower should be salaried, self-employed, business owner or a professional
- They should be of Indian nationality residing in or outside India
- They should be at least 21 years old and not more than 65 years old
- Should meet the minimum repayment capacity or minimum salary requirements
- They must be in the current job for one year (salaried) or two years in the same business (self-employed or professional)
Why Should You Apply for a Car Loan?
Loanqubes.com is an online aggregator of car loan products as offered by banks and other financial institutions across India. Perceptively, checking out and applying for a car loan on this customer friendly website offers the following unbeatable advantages-
- Comprehensive List of Car LoansBrowse through and get all the information about the most popular car loans available in India. Having so many options before you allows for informed decision making, based on the analysis of the various features, pros and cons offered by the car loans.
- Compare and SelectBreeze through all the car loan options before you and select the one that best satisfies your requirements and respects your limitations. Traditionally, this step would entail a lot of running around and enquiries, however, LoanQubes.com turns this into an intensely informative, interactive and private affair that could be completed from the comforts of your home or office.
- Check your EligibilityA simple and interactive wizard helps to ascertain your qualification for the car loan and throws up the best options in line with your requirements. This saves time and cuts out the middlemen.
- Easy Application ProcessApplying for a car loan on LoanQubes.com is as simple as simple can be. After selecting your car loan and furnishing some essential details on the website, the process is taken over by the bank offering the car loan. Save on all the leg-work and get your car loan with just a few clicks on the computer mouse.
- Robust Customer SupportHave a query or concern with regards to the car loan in question? The expert customer support team from LoanQubes.com is always at hand to sort out all your issues. Procuring that ideal car loan was never more simpler.
- 100% FreeMaking use of the various offerings from Loanqubes.com, including friendly tools like Car Loan EMI Calculator is completely free of charge. Convenience meets simplicity, at 0% monetary investment.
Car Loan Approval - Steps to Get the Loan Approved Faster
When you want to receive funds to purchase the new or used car that you have been eyeing for a while, it is better that you opt for a pre-approved loan. In order to avail such a loan, you can follow a few steps to quickly receive the required funds.
- Check Your Credit Report
There are a number of organisations that offer individuals the facility to check their credit report without any charges once every year. You can check your credit report to verify your standing in terms of credit and resolve the errors present such as late payment, collection, incorrect credit limit, etc. If a single error is left unresolved, it can negatively impact your credit score and cause hindrance in getting your car loan approved. By checking your credit report, you can get an idea of how your application will be treated by the lenders and will, therefore, help you take the necessary steps in advance.
- Pay Your Bills on Time
In order to avail a loan to purchase your dream car, you must have a minimum monthly pre-tax income and a manageable debt-to-income ratio (DTI). While it is usually not possible to change one’s income, you can improve your DTI by clearing off all your pending credit card debts.
To create a better credit profile, you should always pay your bills on time. If that is not possible then you can make timely payment of your bills at least 6 months prior to the loan application. If you pay your bills on time, it assures the lender that you will also repay the Equated Monthly Installments (EMIs) on time. This, in turn, will help you secure a loan easily.
- Look for Your Options
There are multiple options available in the market through which you can get a loan to purchase your new or used car. You should check the car loan interest rates of different banks and car financing firms in order to find the one that fits your needs.
- Borrow as Less as Possible
By paying a larger amount upfront as down payment, you can reduce the sum that you will have to borrow in order to match the price tag of the car you have chosen. If you borrow a lesser amount, you will be in a better position to repay your loan quickly since a smaller loan amount means smaller EMIs or a shorter loan tenure. Additionally, the amount that you will have to pay to your bank or car financing organisation as interest will also reduce.
- Be Sure to Choose a Plan That Fits Your Budget
The repayment capability of an applicant greatly impacts the approval of a loan that he or she has applied for. As you decide to get a loan to purchase the car that you have always wanted, you should make sure that you choose a scheme that you can afford. If you are already paying EMIs for other loans that you have availed, you should ensure that you can also pay the EMI of the car loan that you choose.
- Pay Attention to the Terms of the Loan
A car loan that has low monthly EMIs but consists of a longer tenure might not be viable for you. Before you finalise your financing scheme, you should always try to opt for a plan that carries the lowest interest rate and the shortest loan tenure as possible. Avoid being tricked into an expensive payment situation by ensuring that the loan terms are conclusive.
- Get a Car Insurance With Complete Coverage
While offering a loan, the main concern of banks and NBFCs is not to incur any losses. Therefore, having a full-cover insurance is a requirement for many organisations before sanctioning a car loan as it helps recover the balance debt in case there is an accident wherein the borrower is at fault. Additionally, you should also have a Guaranteed Auto Protection (GAP) insurance which recovers the difference amount between the insurance loss of your car and the outstanding loan.