The luxury and convenience of having a car are undebatable, and we all dream to have a car of our own choice for our long and short distance travelling needs. Applying for a car loan is an easy way to make our dream come true, but it can be complicated if you don’t know what it takes to get a car loan approved. Therefore, in this article, we have some valuable tips to get instant approval on car loan.
We know how crucial it is to choose the right car that can reflect our persona, and we spend a considerable amount of time deciding this. But, spending time to ensure that you can get your car loan approved easily is significant. If you follow the right approach, it’s easy to meet car loan approval criteria. All you need to do is follow these tips to get instant approval on car loan.
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Tips to Get Instant Approval on Car Loan
Apart from keeping all the essential documents in order and matching the age and income criteria, more things need to be considered to improve your chances of getting a car loan without much hassle.
Repay Your Debts Timely
All the financial institutions like and prioritise customers who tend to pay their EMIs, credit card bills, bank loans and other debts on time. Thus you would not only avoid the penalties, but you will also enhance your credit score. Your previous record of paying your debts timely improves the probability of getting a car loan quickly. And this ensures that you are credit-worthy and will pay the instalments on time.
Raise Your Credit Score
One of the foremost tips to get instant approval on car loan is having a good credit score. Nearly all loan approval processes start with checking the applicant’s credit score. Some banks term it as CIBIL score, where CIBIL stands for Credit Information Bureau (India) Limited, one of the four credit information companies licensed by RBI. The score given by the company reflects your credit history. If you have a lower CIBIL score, you can improve it by paying all your pending bills and bank debts.
Know Eligibility Criteria
Before applying for a car loan, do some search on eligibility criteria of different banks as each bank has its terms to approve debt for purchasing a car. It includes the minimum income requirements and the maximum amount that can be given as a car loan. By evaluating the eligibility criteria of different financial institutions, you would know whether you are the right choice for them or not.
Prepare Documents in Advance
Anyone who will give you tips to get instant approval on car loan, will ask you to prepare the essential documents before applying for the loan. You can visit the bank’s website to know the list of required documents to keep them organised in advance. Thus, you will decrease the chances of getting your loan application rejected.
Arrange the Down Payment
Some banks offer 100 per cent value of a car as debt, while the majority of the banks and financial institutions ask you to pay 15 to 20 per cent of the car’s value, and they will pay the rest. So, before applying for a car loan, it’s crucial to ensure that you have the funds to make the down payment. If you do not have 15 to 20 per cent of the total car value, then apply to only those banks providing a full loan to purchase a car.
Opt For Reputed Dealer
Following inclusion in tips to get instant approval on car loan is choosing a trusted yet reputed dealer. Such car dealers have collaborated with banks and insurance companies, and if you purchase a car through such a dealer, you will get your car loan approved quickly. You can visit different car outlets to know about their tie-up with banks and pick one that suits your needs the most. It is one of the most crucial tips to get instant approval on car loan.
Apply To Your Existing Financial Institution
As per the experts, applying for a car loan in your existing bank with an account improves your chances of getting the loan approved with ease. Your financial institution already knows how credit-worthy you are, and maybe you match their criteria of pre-approved customers. Most banks trust their existing customers if they have a previous record of timely paying their debts and credit card bills.
Apart from tips to get instant approval on car loan, we suggest you apply for a loan amount that you can pay timely without much hassle. The financial institutions determine the interest rate and maximum loan amount to an applicant based on their eligibility. You can take the assistance of a comparison website to evaluate the car loan offers of different banks to pick the most cost-efficient one with lower interest rates and simplified terms and conditions.