How to check used car loan eligibility?

In general checking eligibility for a used car loan is quite easy. Most lenders offer an online way to check your eligibility with an eligibility calculator. The applicant simply answers questions about their age, income and loan amount needed to see if they are eligible right away. There are standard criteria, including age, income, and employment/business continuity. Salaried applicants typically need to be in their current employment for at least one year, whereas self-employed applicants must show two or more years of business continuity.

You will require a reasonable credit score, usually over 700. Applicants can also check their eligibility with loan officers or a mobile app. Eligibility applications may require extra information/documentation, which may include identity verification, proof of address, proof of income, etc., including details about the car. The application process is user-friendly, and the application can be done online, enabling you to check eligibility from anywhere. The car should also have certain age and ownership criteria to meet acceptance guidelines.

If your current loans or credit card dues are high then the lender will check your debt-to-income ratio to make sure the new EMIs are manageable. Most banks and NBFCs do not like a debt-to-income ratio of more than 60% of income. Paying off debts along with regular repayments will improve your eligibility. Most importantly, shopping around and comparing offers with several lenders will help you get the best deal on your used car loan.