What Is A Car Loan Eligibility Calculator
Whether for business or for personal use, owning a car is a real dream for many. When you consider a car loan, you are likely to do your due homework in checking for affordability and eligibility. While you must get a car loan from a lender who has banking expertise in auto loans to get the best rate and comfortable repayment options, you also need to check how much loan you are likely to get and what your EMI looks like. For this, you can use the car loan eligibility calculator.
What is a car loan eligibility calculator?
The quantum of finance you can get in the form of a car loan can be calculated by using the car loan eligibility calculator available online. Your car loan eligibility depends on your current income, value of the car you are looking to buy and assessment of your repayment capacity through current expenses or EMIs you are currently servicing. The car loan eligibility calculator helps you to arrive at an estimate of how much loan you can get, based on your inputs on your current income, value of the car, existing EMIs, age, location among other factors, though the factors taken into consideration for calculating car loan eligibility may vary from bank to bank.
How is car loan eligibility calculated?
Most car loan eligibility calculators use monthly income to come around to an estimate of loan value you are likely to get for a given car. Some factors or parameters common across car loan eligibility calculators are
- Current EMIs you are already paying
- EMI you can comfortably pay
- Car loan tenure you prefer
- Some calculators may also consider your Cibil score to approximate your eligibility
- Your monthly income
How to use the car loan eligibility calculator?
Open the car loan eligibility calculator page online. You can go to the bank website for that. Enter the following inputs (these differ from bank to bank but here are some of the common ones that most banks would like to know in order to compute your car loan eligibility)
- City you live in
- Age or date of birth
- Select your net monthly income
- Select the loan tenure you would prefer
- Some banks may ask details for the current EMIs you are already servicing
- Cost of the car you are planning to buy and make of the car
- Click on the button Check Loan Eligibility (or variants of it) to get the value of the loan you can expect to get
The calculator will give you either the EMI you are likely to pay for your car loan or the loan value you are likely to get taking into account your current finances, cost of the car, age, retirement among other factors. There may be other criteria applicable as well to be eligible for a car loan in the first place.
How do I know if I am eligible for a car loan?
You can take a look at the checklist of eligibility criteria provided on the website of the lenders for a car loan. For Bank of Baroda, the eligibility for car loans is open to
- Salaried Employees
- Businessmen, professionals and Farmers
- Directors of Private and Public Limited companies, Proprietor of Proprietorship Firms, partners of Partnership Firms.
- Corporates (Partnership, private Limited, Public limited and Trust)
What are the benefits of going for a car loan?
- Car loans are designed for those who may be unable to purchase a private vehicle all at once due to paucity of funds or fear of sparing lumpsum savings in one go.
- A car loan from Bank of Baroda comes with advantages like quick processing, minimal documentation and speedy fund disbursal. Additionally, the bank’s loan borrowers are not required to pay foreclosure charges or pre-payment penalty, nor do they need to pay advance EMIs.
- With large banks like Bank of Baroda, with higher limits on the car loan amount, you can avail loans for new cars for up to Rs.100 lakh (Rs.1 crore).
- You don’t have to worry about down payment since now you can get up to 90% financing on the car’s on-road price with Bank of Baroda’s auto loan.
- If you are an existing home loan or other loan borrower with a commendable credit history, you may enjoy additional concessions on the interest rates bank offers on the car loan.
What is the collateral for car loans?
As collateral, all cars financed through our auto loans are hypothecated with the lender. The hypothecation is removed once the borrower repays the entire dues of loan account.
What is the age limit to apply for a car loan?
The minimum age of the borrower should be 21 years, while the maximum age should not exceed 70 years after the repayment period is over.
What is car loan EMI calculator?
In using a car loan EMI calculator, you need to key in three basic variables- the loan amount you are likely to need, the tenure or the repayment period that suits your finances and the interest rate. Now, the interest rate is what you get from the bank, while the other two are the ones you can play around with on the calculator.