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RBL Bank Car Loan Eligibility
Owning a car is not a distant dream anymore. With many financing options and leading financial institutions offering numerous options, it is rather easy to purchase a new four-wheeler. All top banks in the country offer car loans for buying a new car as well as a used car. As an applicant, you must meet all criteria of the car loan eligibility as per the bank.
RBL Bank is one of the leading banks in the country that offers car loans to their customers. If you meet the RBL Bank car loan eligibility, purchasing a new car is a cakewalk. The bank offers financial assistance for small cars, compact cars and SUVs. You can choose the tenure period offered by the bank from 12 to 60 months. The RBL Bank offers upto 90% of the value of the car as a loan. The bank also has the option of fixed rate of interest for your car loan.
As an existing customer of the bank, it is possible to apply for a car loan online. As a new customer, the bank may request a few details additionally before applying for a car loan.
RBL Bank offers car loan for the purchase of new cars. However, it is at the discretion of the bank to offer loan for a pre-owned vehicle and/or a new car depending on the income level, age and other factors of the applicant.RBL Bank Car Loan Eligibility Criteria
It is prudent to check the eligibility for a car loan before applying for one to avoid rejection. The eligibility and loan criterion for a car loan from RBL Bank has been mentioned below:
Salaried Individuals
- The age of the applicant should be a minimum of 21 years and maximum of 58 years at the time of loan maturity. This is kept at a maximum of 60 years for Government employees.
- A minimum total work experience of 3 years is required.
- There needs to be a minimum one landline contact at the residence or the office of the applicant. A post-paid mobile connection is required.
- Minimum income required on the basis the segment of the car purchased is mentioned below:
| Segment | Tier 1 - Small | Tier 2 Compact | Tier 3 - Mid-sized | Tier 4 - Large-sized | Premium Cars |
|---|---|---|---|---|---|
| Minimum Income | Rs.1 Lakh | Rs.1.5 Lakhs | Rs.3.5 Lakhs | Rs.5.5 Lakhs | Rs.9 Lakhs |
Self-Employed Individuals/Professionals
- RBL Bank has set the minimum age of the applicant to 25 years and a maximum of 65 years at the time of loan maturity.
- The applicant needs to have a minimum of 3 years of experience in the same line of business.
- The bank requires the applicant to have one landline contact at the residence or the office and a post-paid mobile connection is required.
- The minimum income to be drawn by this type of individual is mentioned below:
| Segment | Tier 1 - Small | Tier 2 Compact | Tier 3 - Mid-sized | Tier 4 - Large-sized | Premium Cars |
|---|---|---|---|---|---|
| Minimum Income | Rs.1 Lakh | Rs.1.5 Lakhs | Rs.3 Lakhs | Rs.4 Lakhs | Rs.7.5 Lakhs |
The basic requirement of documents to be submitted along with the application are:
- PAN Card needs to be submitted by Individual/Partnership Firm/Company
- Identity Proof needs to be submitted by all type of applicants from any – Voter’s ID, Driving License, Passport or Aadhaar
- Address Proof is to be submitted by all type of applicants from any – Voter’s ID, Driving License, Passport, Telephone Bill, Electricity Bill, Registered Lease Deed or Sale Agreement/Bank Statement
- Business Continuity proof is required to be submitted by the Self-Employed with a document dated 3 years back. This can be any one of the Bank Statement, Sales Tax Challans, IT returns, Shops and Establishment Certificate, Certificate of Incorporation and Partnership Deed.
- The bank requires passport size photographs of the applicant and co-applicant if any.
- The Pro-forma invoice of the car is to be submitted
- Margin money transfer receipt from the dealer
- RTO set
RBL Bank also requires different financial documents to process the loan and fulfil the eligibility criteria. These are:
For Salaried Individuals:
- Latest salary slips of the past 3 months
- Latest Form 16s
- Bank statements from the applicant’s primary account for the past one year
For Self-Employed Individuals/Sole Proprietorships:
For Self-employed Professionals:
- Latest audited IT returns and financials for the past 2 years including Balance Sheet, P&L account, income computation sheet
- Bank statements of the applicant for the past 1 year
- Professional Qualification degree and degree certificate or final year marksheet
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 – A credit score reflects your financial condition. This is considered very strongly by the bank. If the credit score is high , the car loan will be received without any issues. If the credit score is less, then the eligibility for a car loan diminishes.
Age – The minimum age eligibility for a car loan is 21 years of age. Also, the loan needs to be paid off before you turn 65 years. Banks prefer applicants who have more working years left.
Income level – The amount of loan that could be disbursed by the bank depends quite a lot on your income levels. The proof of your income needs to be shared with the bank. The bank has created a threshold income eligibility limit. In case you fall behind this limit, you can include your spouse’s income or any other family member’s income to increase your eligibility.
Debt – Debt affect your eligibility status very much. The debt-to-income ratio is a major point in the loan process. If you are currently paying off another loan, there are decreased chances of your eligibility for a car loan.
How to improve your eligibility for car loan?
It is possible to increase your eligibility for a car loan by taking some of the following steps:
Repay existing debts – One must finish repaying dues if any on priority. This automatically increases your eligibility for a car loan. Debt management is a skill and this needs to be sharpened to receive other financial assistance. The debt-to-income ratio needs to be kept at a healthy level.
Bring in Co-applicants – It helps to include another co-applicant in your loan application. This can be any family member like spouse, father, mother, siblings. This can be done even if the car is not purchased in their name.
Increase your credit score – Improving your credit score is a big step and can go a long way with the bank. It is important to clear any outstanding, credit card bills and so on. Completely discarding the credit card affects the available credit limit. The revolving debt needs to be managed on the lower side to increase your credit score.
FAQs
(1) When does the bank reject my loan application?If your credit score is very poor, chances are high that the bank will reject your loan application. It can also happen when you have applied for a loan or credit cards many times or defaulted on EMIs.
(2) What are EMIs?Equated Monthly Instalments help in repaying your loan to the bank in smaller amounts on a regular basis. EMIs help you afford financial assistance to buy a car by breaking down the repayments in smaller amounts and spread across a certain tenure.
(3) Is it possible to negotiate the rate of interest with the bank?If you are eligible for a car loan, it is possible to negotiate better terms and rate of interest with the bank. However, it is the discretion of the bank to give a different rate of interest for an application.
(4) How can I improve my credit score?Having a good credit score is critical to getting a car loan sanctioned. This can be done by paying off debts, closing any outstanding amounts and ensuring the revolving debt is kept to the minimal.
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