required. However, business stability of minimum three years is required from the work establishment.
Similarly, at Axis Bank, the minimum age for applying for a loan is 21 years, while the maximum is 60 years. Income eligibility is based on Form 16 and salary slip. Here as well, a minimum of two years of continuous job is required. The strictest norms among all banks seem to be of SBI. It only allows a car loan if the annual income is more than R6 lakh.
Most finances on a new car loan are given up to 85% of the on-road price of the vehicle, which generally includes registration of the vehicle, insurance, warranties, etc.
Some common documents requirement include ITR, copy of residence proof and passport-size photographs of the applicant. Office address proof in case of service individuals is also needed.
Before taking a car loan, try and save a good amount to pay as downpayment. For a middle-class income earner, a rate of interest up to 15% can prove to be uncomfortable. So, it is better that you save money and repay the loan as quickly as possible. Negotiate and try to seek options where your liability will be minimal. Don’t default on the EMIs as it will impact your credit score.
The writer is CEO, BankBazaar.com