What is a car loan?
A car loan is a type of loan given by banks to individuals to finance the purchase of a car. The car being purchased is used as the “asset” that guarantees the loans. The typical period of a car loan is between 1 to 7 years.
What do I need to be eligible for a car loan?
Car loans are given under four main programs
- Professionals (doctors, lawyers, etc. who are freelancers)
- Self Employed
- ID Program.
The required documents for the car loans are:
- A positive credit rating (a good I-Score result)
- A balanced Debt Burden Ratio (DBR), which means that the loan amount you are looking to borrow, added to your existing loan obligations does not exceed your ability to pay back the loan based on your proven income. For example: Your obligations shouldn’t exceed 50% of your salary