Dhanlaxmi Bank Car Loan Eligibility

Car Loans for purchase of New Cars

Car Loans for purchase of Used Cars

Documentation requirements for applying a car loan with Dhanlaxmi Bank

The following basic documents are required to submit the application

• Duly filled Application Form
• Passport size coloured photographs
• Identity proof – Pan Card/Passport copy/Voters ID card/ Driving License
• Address Proof – Telephone Bill/Electricity Bill/Ration Card/Life Insurance premium receipt/Sale Agreement/Municipality TAX receipt/Property Tax Receipt/Valid Leave and License agreement
• Bank Statement – Last 6 months
• Income Proof
• For Salaried individuals - 6 months’ salary slip, Form 16 and ITR for last 2 years
• For Self Employed/Professional - Last 3 years ITR and previous one year ITR with Advance tax challan of current year
• For Partnership Firms/ Private Limited Company/Public Limited Company - Audited Financials and ITRs for last 03 years

Factors affecting Car Loan eligibility with Central Bank of India

There are various factors affecting one’s car loan eligibility.

• Nature of employment - Salaried, Self- Employed Professional or a Businessman
• Salary/Income
• Credit Score
• Age
• Co-Applicants Income
• Assets, Liabilities, other loans
• Existing relationship with the Bank

Credit Score – Your credit score plays a major role in the car loan processing. Credit Score indicates the financial standing of the applicant to the bank. Higher the credit score, higher the chances of loan approval. A healthy credit score can also help you to get conducive loan terms & interest rates.

Salary/Income – The Annual Income is taken in to consideration while loan processing. Banks would decide the quantum of the loan amount based on the salary of the applicant so that it corresponds to their repayment capability. Higher income and a lower loan amount are considered ideal by the banks and are approved easily.

Age of the applicant – Age of the applicant indicates the number of earning years left for the borrower to repay the loan. Longer the earning years left easier for the borrower to repay the loan.

Pre-existing loans/liabilities – Any existing debt for the applicant can put pressure on the car loan repayment. Hence banks look into any pre-existing liabilities while deciding the loan amount and the tenure. They also look into the repayment pattern on these existing loans or EMIs to understand the credibility of the applicant.

How can I improve my Car Loan eligibility?

These simple precautions towards financial management can help you improve your car loan eligibility

1. Pay attention to your credit score – Credit score is important while applying any type of loan. Hence, keep up to date with your current score and make sure you take necessary steps to improve it. You can achieve this by maintaining a healthy repayment schedule on your existing credit cards or other loans. Make sure that all EMIs are paid on time. Have a healthy revolving debt with your credit cards to improve your credit score.

2. Bring in co-applicants – If you have other family members who are earning, you can add them as co-applicants on the loan. This can be any family member like spouse, father, mother, siblings. Their income shall also be taken into consideration to calculate the debt to income ratio, which will increase the approval rating. This can be done even if the car is not purchased in their name.

3. Clear pre-existing loans or debts – Try and pay off your existing loans or debts. Not having any pre-existing liabilities will increase your chances for loan approval. The debt-to-income ratio needs to be kept at a healthy level.

FAQs: Dhanlaxmi Bank Car Loan Eligibility

1. What is an EMI?

EMI or 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.

2. What is the interest rate offered on car loan from Dhanlaxmi Bank?

Car loans from Dhanlaxmi Bank come at an attractive interest rate of 9.85% to 10.10%. But the interest rate offered depends on factors like the loan amount, repayment tenure, your salary, credit score, etc.

3. How can repaying my existing debts help in improving my loan approval rate?

When you do not have any pre-existing loans or liabilities, your debt to income ratio is increased. This gives a healthy outlook on your credibility and thus increases your approval rate.

4. What is the minimum salary to be eligible for a car loan?

Dhanlaxmi Bank offers loans to salaried individuals with a minimum annual salary of Rs.1,20,000/-

5. What are the benefits of having a good credit score?

A healthy credit score indicates your financial standing. It helps you in securing loans quickly and hassle free. You can also negotiate with the bank for a lower interest rate and better offers on the loan.