What is loan eligibility calculator:-

loan eligibility calculator:-
Loan Eligibility Calculator is one such calculator in which we can know our loan eligibility in a matter of seconds. You can self-assess your loan eligibility through the criteria on other given site by online method, and check whether your age, work experience and monthly remuneration falls within the specified limit. In this calculator you have to feed some of your information about loan and then you only have to click on calculate, the site will show you eligible amount & monthly EMIs.

Thinking about your car loan eligibility always and getting hassle from what should be your next step to increasing your chances to get approval? We are here to provide you all the kind of information that you need to know on car loan eligibility.

We are here to guide you choosing the right car loan for you so that you can make the right decision according to your choice and can apply for the right car loan. Your eligibility for a car loan will be vary from different lender.

Detail description:-

• Applicant's minimum age of 18 years
• The maximum age of the applicant is 60 years for salaried applicants and 65 years for self-employed applicants.
• Minimum income should be at least Rs.3 lakh annually.
• Any of the car model but must be approved.
• Employment Type -Salaried or Self Employed
  Country or place of residence India (rural/semi-urban/urban area)
• Total period of staying in current residence Minimum 1 year.

Factors that affect Loan eligibility

What are the main factors affect loan eligibility?

Age- The first and foremost factor that a lender/financier considers when you applies for a loan is your age. Generally, financial institutions try to limit the loan tenure to the retirement age of the primary applicant. This means that young professionals (early 20s and 30s) can avail loans with tenures of up to 25 years without any hassle. But it can be a bit tough for older applicants especially for applicants over 40 to be eligible for the extended tenure.

Car Type: The eligibility will determine by the type of car that you want to buy with Car Financing. Each model of car will have a specific resealing value according to the car features and specifications. So, if the resale value of the car is high that you want, your car loan eligibility will also be high. Since a car is an asset whose value will decrease in the coming years, resale value is taken into account to determine eligibility.

Income- Any category the applicant belongs to, they must have a stable and regular source of income. Let us categorize it into salaried, professional and self-employed. Basically, if the borrower is a good money earner then there is less risk in borrowing money from any bank.

• Salaried- The people who work in the firm whether they are private registered or government, then these rules also applies on them:-

1. Should have experience of last 1 year or more in the current organization.
2. Documents like pay slip, bank statement and Form 16 may be asked by lender.
3. Must be a co-applicant or guarantor too.

• Independent professionals - This category includes doctors, dentists, architects, engineers, management consultants, chartered accountants comes under independent workers/professionals. These people are required to submit bank statements and ITR papers to take the loan.
• Self employed- If you have your own company or your own business, or you have any other source of income like rented property or share holder then you come under this category. If you have solid proof of your income like bank statement or tax related documents then you can easily apply for loan.

Cibil score - Your CIBIL score plays a major role in getting your loan document approved. The Bank checks your past credit payments from Credit Information Bureau India Limited. This company keeps all of your past credit records, and your relationship with lenders. If your old record is not correct then it can greatly reduce your eligibility.

Loan tenure - If you choose a longer tenure for your loan, your eligibility will improve and it can extend even further. Your EMI will also be low and manageable. But the downside is that you'll end up your loan paying more interest.

Outstanding loans- If you have taken a loan in the past, then always pay it on time and try to repay your loan as soon as possible. Apply for another loan only after you have settled your previous loan. If your old loan goes unsettled, it can take a toll on your eligibility, and your loan approval may get rejected.

How to improve Loan eligibility

How do I improve my eligible loan amount?

Here we are going to tell you some innovative ways, with the help of them you can improve your eligibility of loan amount.

While applying for loan, you can make your own spouse or any family member as your co-applicant and can take joint home loan together. In this response the income of your spouse or your co-applicant will be considered and it increases your loan eligibility and amount.

You can choose a longer tenure of your loan to increase the eligibility of your loan amount. This will also reduce your monthly installments and make easier to repay the loan.

As we have already told you that you can add your life partner or your parents or any member of the household as a co-applicant for your loan. Provided their income should be fixed and their CIBIL score should also be good.

FAQ related to Loan eligibility

Who can take a Car Loan?
Before applying for the loan, there are some conditions, which you need to keep in mind. This includes information about age, minimum salary, type of job and residence.

Is it good to pay off car loan early?
Sometimes, paying off the loan early helps lenders pay less interest and, therefore, face prepayment penalties. Sometimes, paying off the loan early and bearing the costs of the prepayment penalty is a benefit because you save a little bit of interest.

What are the disadvantages of a car loan?
The main disadvantage of a car loan or any loan product is that you have to be privileged in the form of interest and fees. Basically, you are buying money from a lender. Failure to comply with the terms and conditions laid down in your loan undertaking could cost you more than you expected.

Is 786 a good CIBIL score for getting a car loan?
A 786 credit score is great, but it could be even better. If you can raise your score to an exceptional range (800-850), you may be eligible for the best lending terms, including the lowest interest rates and fees, and the most attractive credit-card rewards programs.

How to improve CIBIL score instantly to get loan approval?
Check your credit score and report regularly.
Don't miss payment.
Limit your credit usage.
Reduce your debt burden.
Avoid multiple loan/credit card applications in a short span of time.
Pay attention to the spending habits of your joint applicant

How much vehicle loan can I get for 40,000 salary?
Customers are advised to limit their car loan to no more than 20 per cent of their monthly income. For example, if you pay Rs. 40,000 per month, your monthly car loan EMI should not exceed Rs. 8,000

What is the minimum salary required for car loan?
For getting approval of car loan your minimum salary should be at least 15000* for a month.

Can I get a car loan with low CIBIL score?
A CIBIL score of less than 600 can affects your chances of getting a car loan as it reflects poor loan repayment behavior. The chances of getting reject you car loan is high.

How to use Loan Eligibility Calculator?
Loan Eligibility Calculator is one such calculator in which we can know our loan eligibility in a matter of seconds. You can self-assess your loan eligibility through the criteria on other given site by online method, and check whether your age, work experience and monthly remuneration falls within the specified limit. In this calculator you have to feed some of your information about loan and then you only have to click on calculate, the site will show you eligible amount & monthly EMIs.