Posted on Friday September 13th, 2019

If you have always wanted to buy a car but never have managed to gather all the funds for it, it is time you rely on a car loan to help your dreams become successful. While different banks have different interest rates on the money borrowed, you will be able to find one that suits your needs and be able to buy the car of your dreams. However, although car loans are easy to demand and will help you to buy your planned car, there are some things that you have to keep in mind while and after applying for a car loan because there are some things you have to put in line in order to obtain the loan.

Eligibility for Applying for a Car Loan

Car Loan Eligibility is different for different individuals. Depending on how you are employed, the eligibility is as follows:

● In the case of salaried employees, the person has to be at least 21 years old and must be less than 60 years old before the end of the tenure of the loan. The individual must have had a job for at least two years and at least 1 with the current employer. The applicant must be earning at least ₹2,50,000 per year, which may include the salary of the co-applicant, and finally, the person must have a postpaid phone.

● For self employed individuals, the person must also be at least 21 years old and must be less than 65 years before the end of the tenure. The person must have been in business for at least two years, earning a minimum of 2,50,000 per year.

For others who are also self employed but in partnership firms or are in the Public Limited Companies, the eligibility criteria are the same as for any other self-employed individuals.

Interest Rates To Be Kept In Mind

When you are applying for a loan and thinking exclusively of possessing the keys of your car, there is a possibility that you may tend to neglect other important factors that can become a problem later. When applying for a car loan always remember, the amount of money you will be provided with from the bank has to be paid back with some interest. So you give back more than you have taken. Keeping this in mind, it is logical that you look for those opportunities where you will have to pay the least amount of interest. Hence, there is no point being clouded by the benefits and other services of the loan provider if you are a steep rate of interest. On the other hand, choose the provider that will offer you a nominal rate of interest but at the same time, offer you excellent benefits. So make sure to compare the Car Loans Interest Rates before settling down for one.

With these things in mind, you will surely be able to buy the car you have always wanted to.