According to a news report, car sales have got a boom this year. Well according to the statistics, since May 2017, the sell in-car has grown 23% including the 9% growth in their sale in 2019 only that constitutes 39% solely. So we can say that the major boom came a previous year in which 2.5 lakh cars were sold every month. Even domestic companies like Mahindra or Maruti Suzuki have seen tremendous growth by 15% in last year only. The car selling industry itself saw the selling of 1.1 million vehicles in the first four months of 2020 only before lockdown. As of March 31st, 2020 3 million cars were sold setting a record of the decades.
What a great way to start a new year and a new decade right? With a flood of youth on Indian roads, the industry will see more and more boom and the roads will be filled with more cars as more and more people will be able to buy cars. So there is no doubt in it that the demand for Car Loans is increasing. Alo this increase in the sale of car loans has reduced the car loan interest rate. Canara Bank Car Loan provides loans at a rate of 7.35%. In a report by Ernst & Young, the new non-transport vehicle financing market in India will become 2x by 2020. The approximated value of the market is Rs. 1,55,000 crore. The report also mentioned that the Car Loan market in India is a growing market and finance penetration stands at 74%.
These estimates were given hoping that India’s selling of vehicles will increase exponentially to about 50% more sell in vehicles. So now we will talk about the eligibility criteria for a car loan:-
1) Age of the loanee must be between 18 to 75 years
2) Minimum Salary must be ₹10000
3) If the loanee is self-employed or is a partner in a firm, the firm must be at least 3 years old.
4) If the loanee is working under someone, he must have experience of 2 years in that field.
5) A person can buy a new or a used car depending on his salary.
6) The loanee must be a resident of his current address for at least one year.
It must be noted that the eligibility criteria for a car loan depend upon the bank to the bank just like any other loan. There is an eligibility calculator that helps you calculate your end for a certain car from a certain bank.
Worth the help of this calculator, a person can come to know about two things:-
1) Is he/she eligible to apply for a car loan.
2) From which lender he can buy the car loan.
This helps you save your time and money from going from lender to lender to get the best deal for car loans. There are also different eligibility criteria for used cars. This is because the car is used and has depreciated its value from the original price. So mostly all of the criteria would be the same but there will be leniency in the salary.
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