Catholic Syrian Bank Car Loan Eligibility

Customers should check their car loan eligibility before approaching the bank to avoid any rejection. Rejection of car loan from a bank could have adverse effects on one’s loan eligibility in the future. Hence, it is important to understand the eligibility criteria set out by Catholic Syrian Bank before applying for a car loan with them.

Catholic Syrian Bank offers two types of loans, viz. Individuals Car loans & VIP Car loans

Individual Car Loans

• This loan can be availed by Individuals, Institutions, Firms & Companies
• This loan is available for purchase of non-commercial motor vehicles like Car, Jeep, Van etc
• Customers can avail up to 80% of the on road cost including Invoice price, Road tax, Insurance Premium and Registration charges. The quantum of the loan amount depends on the income of the applicant
• Requires a guarantee of minimum one person
• Hypothecation of the purchased vehicle serves as the security for the loan
• The loans are offered for a maximum tenure of 5 years

Documentation

Income Proof - Latest Salary slip / certificate or latest IT Return with computation or self-declaration by borrower (if fully covered by collateral security)

VIP Car Loans

This car loan is available for high net individuals.

• Available for account holders having term deposits of not less than ₹25 lakhs in his/her own name or jointly with family members for the last one year
• Also available for customers with fund based advance of not less than ₹25 lakhs for a minimum period of one year
• Offers a loan amount equal to 100% of invoice value excluding Insurance, Registration, Road Tax and other incidental charges
• This loan type does not require any guarantee
• Only income proof document required for this loan is the statement of the customer’s bank account for the past one year
• Hypothecation of the purchased vehicle serves as the security for the loan

What are the factors impacting the eligibility of a car loan?

Many factors affect the eligibility of a car loan. The main points are mentioned below:

Credit score –  The applicant’s credit score is an indication of their financial standing. This is considered very strongly by the bank. Higher the credit score, the higher the chances of approvals. A higher credit score can also fetch you better interest rate and higher amount on your loans.

Age of the applicant –  The minimum age eligibility for a car loan is 21 years and the maximum age eligibility is only up to 65 years. Hence, the younger the applicant, longer the earning years left. This assures the Banks against the loans turning bad.

Salary of the applicant – All banks have a threshold income eligibility limit. This limit indicates the repayment capability of the applicant and hence banks give greater importance to this factor. Applicants can include their spouse’s income or any other family member’s income to increase their eligibility.

Existing Loans –  Pre-existing loans affect your eligibility for a car loan. The debt-to-income ratio is a major point in the loan process. Pre-existing loans mean decreased cash flow which may cause trouble in repaying the car loan. Hence, pre-existing loans are a deciding factor in your loan application.

How to improve your eligibility for car loan?

Simple precautions in one’s financial planning helps them to secure a desirable car loan.

Repay existing debts: Make sure that you repay all your loans or debts on time. This automatically increases your eligibility for a car loan. A healthy repayment history and a good debt-to-income ratio helps applicants in securing a car loan with attractive interest rates and other conditions.

Add Co-applicants –  If you have another earning member in the family, add them as co-applicants. This can be any family member like spouse, father, mother, siblings. Higher income assures the bank of prompt loan repayment resulting in quicker loan approvals.  

Improve your credit score –  Check your credit score. If it is not great, take immediate steps to improve it. Improving your credit score is a big step and can go a long way with the bank. Have a clean repayment history on all your debts, credit cards and any other liabilities. Maintain a healthy revolving credit with your credit card to increase your credit score. Make timely payments on all the dues. If possible, close any debts or loans, which will give a higher approval rate for your future loans.

FAQs: Catholic Syrian Bank Car Loan Eligibility

1. What is the interest rate offered on car loans by Catholic Syrian Bank?

Catholic Syrian Bank offers an interest rate of 9.9% to 10.75% p.a. on their car loans. This interest rate is case specific and is determined by various factors like the applicant’s salary, age, loan amount, etc.

2. Is it possible to negotiate the rate of interest with the bank?

Yes, it is always possible to negotiate the terms and conditions of your loan with the bank. They are open to it. Depending on your eligibility criteria you can talk to the bank for a better interest rate or waiver of processing fees etc.

3. How can I improve my credit score?

Having a healthy credit score is important to secure any kind of loan and it is simple to improve your credit score. Have a clean repayment history on all your debts, credit cards and any other liabilities. Maintain a healthy revolving credit with your credit card to increase your credit score. Make timely payments on all the dues and if possible pre-close existing loans

4. What are EMIs?

Equated Monthly Instalments is the regular instalment amount you pay back to the bank towards your loan. EMIs offer an affordable financial solution to buy a car by breaking down the repayments in smaller amounts and spread across a certain tenure

5. What is a VIP Car Loan from Catholic Syrian Bank?

The VIP Car Loan from Catholic Syrian Bank is specially designed for High Net Customers of the bank. It can be availed by account holders having term deposits of not less than ₹25 lakhs in his/her own name or jointly with family members for the last one year. Also available for customers with fund based advance of not less than ₹25 lakhs for a minimum period of one year.