Four Wheeler Loan Interest Rate | Four Wheeler Loan Scheme EMI | Eligibility for Car Loan | Four Wheeler Loan Eligibility Calculator
It’s tempting to buy a new car, whether it’s an upgrade, a first car, or a family vehicle. Whatever the reason, obtaining a Four Wheeler Loan simplifies the process. Car loans are typically three to five years in length, but certain lenders may give loans up to seven years. A longer loan term may result in lower equivalent monthly instalments (EMIs), making the automobile appear more inexpensive, but you will end up paying more in interest. Remember that a car is a depreciating asset, so taking out a larger loan might not be the greatest option. However, if you take out a short-term auto loan, the EMIs will be high, and non-payment will result in a blot on your credit report.
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Top Banks’ Four Wheeler Loan Eligibility Criteria
You must meet specific eligibility criteria when applying for a new Four Wheeler Loan, and these criteria can vary from lender to lender. Let’s take a look at some of the leading lenders’ requirements:
Axis Bank Car Loan Eligibility Criteria
| Salaried Individuals | |
| Minimum Age limit | 21 years |
| Maximum Age limit | 70 years at the time of loan maturity |
| Minimum Annual Income needed | Rs.2.4 lakh |
| Employment Status | Applicant Should be in continuous employment for at least 1 year |
| Other Criteria to be fulfilled | To confirm income eligibility, the applicant must be able to present Form 16 and the most recent pay stub. |
| Who is Eligible? | Applicants who have had a salary account with Axis Bank for the past three months are eligible. Applicants employed at MNCs, public and private limited companies, and permanent employees of state/central government/PSUs/reputed colleges/schools |
| Self-Employed Individuals | |
| Minimum Annual Income | Rs.1.8 lakh – Rs.2 lakh |
| Maximum Age | 75 years at the time of loan maturity |
| Minimum Age | 18 years |
| Employment/Business Status | Should be in the same line of business for at least 3 years |
| Other Criteria | Should be able to produce latest Income Tax Returns to prove income eligibility |
State Bank of India Car Loan Eligibility
| Category | Minimum Income Criteria | Maximum Loan Amount | Age Criteria |
| Employees of central and state government, public sector undertakings (PSUs), private companies, reputed establishments | Rs.2.5 lakh p.a. | 48 times of the net monthly income | 21 years to 65 years |
| Self-employed professionals, businessmen, partnership/proprietary firms | Rs.3 lakh p.a. | 4 times gross taxable income or net profit | 21 years to 65 years |
| Individuals involved in agricultural and allied activities | Rs.4 lakh p.a. (can include co-applicants income) | 3 times of net annual income | 21 years to 65 years |
ICICI Bank Four Wheeler Loan Eligibility
You can use the ICICI Bank’s ‘Car Loan Eligibility Calculator‘ on their official website to determine your eligibility for a car loan. To assess your eligibility, you’ll need to provide information like your phone number, place of residence, type of job, automobile model you want to buy, ex-showroom price, and so on.
HDFC Bank Car Loan Eligibility
The following individuals/entities are eligible for an HDFC Bank car loan:
- Self-employed sole proprietors
- Self-employed individuals/professionals at partnership firms
- Salaried individuals
- Self-employed individuals/professionals who own private companies
- Self-employed individuals in public-limited companies including directors
| Salaried Applicants | ||
| Minimum Age limit | 21 years at the time of loan application | |
| Maximum Age limit | 60 years when the loan tenure ends | |
| Job Stability | Should have worked continuously for 2 years and at least 1 year with the current employer | |
| Minimum Annual Income required | Rs.3 lakh | |
| Other Criteria required | Should have a post-paid mobile/telephone | |
| Self-Employed Individuals/Professionals (Sole Proprietorship) | ||
| Minimum Age limit | 21 years at the time of loan application | |
| Maximum Age limit | 65 years when the loan tenure ends | |
| Business Stability | Should have been in the same line of business for at least 2 years | |
| Minimum Annual Income required | Rs.3 lakh |
| Self-Employed Individuals/Professionals (Partnership Firms/Private Limited Companies/Public Limited Companies) | ||
| Minimum Annual Income required | Rs.3 lakh |
Four Wheeler Loan Eligibility Calculator
Many institutions, including ICICI Bank, HDFC Bank, Kotak Mahindra Bank, and others, have a ‘Car Loan Eligibility Calculator’ that allows you to determine your eligibility for a car loan. On the bank’s official website, you may find this tool. The tool will verify if you are eligible for a car loan after entering basic information such as your contact number, residence stability, kind of employment, car model and ex-showroom pricing, and so on. The information you are needed to provide will differ from bank to bank, so you should check the eligibility of specific lenders before applying for a car loan.
Factors Affecting Four Wheeler Loan Eligibility
Eligibility for a Car Loan is determined by Several Factors
- Credit Score: Lenders look at your credit score to determine your repayment capabilities and payment history for past or current loans. If you have a credit score of 750 or higher, your lender will believe you are responsible in terms of repaying your loan on time, and will most likely accept your loan application quickly.
- Type of Car: Your car loan eligibility is determined by the type of car you intend to buy with car finance. According on the characteristics and specifications of the car, each model will have a unique resale value. As a result, if the car you want has a high market value, your car loan eligibility will be high as well. Because a car is an asset whose value depreciates over time, its resale value is considered for determining eligibility.
- For applicants, employment status and business longevity are important considerations. If a salaried employee is asking for a car loan, he or she must have worked for a minimum of one year and a maximum of two to three years in his or her current position. If the candidate is self-employed, they must have worked in the same business for at least two to three years.
- Applicant’s income: When you apply for an auto loan, your lender will look at your income to see if you can afford to pay the EMIs on time. If you have a greater salary, the lender will believe that you will be able to repay the loan without issue. If your salary is a little lower, though, your lender may be concerned about your ability to pay all of your auto loan EMIs on time. As a result, the lender may offer you a smaller loan.
- Your Employer’s Reputation: Your employer may be able to assist you in increasing your vehicle loan eligibility. If you work for a Fortune 100 firm or another high-ranking company, for example, your loan eligibility will improve. You will be able to obtain a larger loan amount to finance the purchase of your car in this manner. If you do not work for such a corporation, however, it is necessary that you generate a significant salary in order to be accepted for a larger loan amount.
- Relationship with Your Lender: If you already have an account with a bank and have a strong relationship with them, you can work out a deal with them to have a larger loan approved at a cheaper interest rate.
Car Loan Documents for Salaried Professionals
| Document | Requirement |
| Identity Proof | Aadhaar cardPAN cardPassportDriving LicenseVoter ID |
| Address Proof | Aadhaar cardVoter IDPassportUtility bill (Electricity, water, or telephone)The applicant’s name must be present in the ration card or utility bill. Driving LicenceFamily card (ration card)Life insurance policy |
| Age Proof | Birth certificate Std. 10 mark sheet School transfer certificateAadhaar card |
| Income Proof | Salary slips Income tax return document Form 16 |
| Bank Statement | 3 to 6 months bank statement |
| Signature Verification Proof | Applicants must complete out separate documents with their signatures at banks. |
| Proforma Invoice | This document offers a dealer’s pricing quote for the car that the applicant has chosen. The loan amount will be determined by the car’s pricing. |
Car Loan Documents for Self-Employed Individuals
| Document | Requirement |
| Identity Proof | Aadhar card Voter ID PAN card Driving license Passport |
| Address Proof | Aadhar card Passport Voter ID Driving license Ration card Utility bill (telephone, electricity, or water) Life insurance policy |
| Age Proof | Birth certificate School transfer certificate Marksheet Aadhaar card |
| Bank Statement | 3-6 months bank statement |
| Business Ownership Proof | The following can be presented to establish that the business is open for business: Office address proofUtility billMaintenance bill Additionally, the applicant must also provide a copy of the business registration license. |
| Proof of Income | Income tax returns for up to 2 years Profit-loss statement Audited balance sheet |
| Signature Verification Proof | Most banks have separate forms to prove the signature of the individual. |
| Proforma Invoice | Along with the other documents, a proforma invoice showing the vehicle’s price must be filed to indicate the intended loan amount. Most banks will lend up to 95% of the car’s purchase price. |