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Know Tata Capital Car Loan Eligibility Criteria

Know Tata Capital Car Loan Eligibility Criteria

Car Loan Eligibility Criteria in India (Tata Capital 2026)

Buying a car – new or pre-owned – requires a considerable investment. But, this does not deter car buyers from buying a car. To back this enthusiasm, banks and non-banking finance companies have introduced car loans as one of their products with a new car loan and used car loan as the two categories. Alike other types of loans, car loans also have specific eligibility criterions. Most often these criterions remain same across all lenders, but sometimes there may be a slight variation. Tata Capital is one of the most trustworthy and popular choices among loan seekers. This non-banking financial company offers car loans both for used and new cars. 

Here is a list of eligibility criterions that you must fulfil in order to avail a car loan from Tata Capital:

Income Criteria for Salaried & Self-Employed Applicants

Based on the source of income, borrowers are classified as salaried professionals and self-employed professionals. And, the appraisal for a car loan for both the categories differ as stated under:

a. Salaried professionals – A salaried professional is one who is employed in a public or a private sector company. In order to be eligible for Tata Capital used car loan, a salaried professional should draw a minimum salary of Rs. 3-lakh per annum, whereas to avail Tata Capital new car loan, the salaried professional should draw a minimum salary of Rs. 2.5-lakh per annum. He should be employed for a minimum of two years, out of which one year should be with the current employer.

b. Self-employed professionals – A self-employed professional is one who owns his own business. In order to be eligible for Tata Capital used car loan or new car loan the self-employed professional should have a current minimum income of Rs. 2-lakh per annum and he should be in the business for at least three years and is applicable if you are the sole proprietor of a business. However, if you are a partner in a partnership firm, then you need to have an annual income of at least Rs. 60,000, and your business should have an income of at least Rs. 4.5-lakh per annum.

Age Criteria for Car Loan Eligibility

The applicant has to be of minimum 21 years of age and at the most should be 60 years of age at the end of the tenure. Relevant age proof needs to be submitted along with loan documents to verify the age of the borrower.

Loan to Value Ratio (LTV) for Car Loan

The loan to value ratio determines the amount of loan to be sanctioned for the car in question, and is a common term used by lenders. As a borrower, your credibility and financial position will determine the loan amount that will be sanctioned by Tata Capital. However, Tata Capital provides a loan up to 90% of the total cost of the car or the actual sale price, whichever amount is lower.

Required Documents for Car Loan Eligibility

Along with the above-mentioned eligibility criterions, salaried individuals have to provide mandatory documents such as PAN card, identity proof, address proof, age proof, signature proof, ITR/salary slip or Form 16, bank statement of last three months including your recent photograph. The self-employed individuals will have to provide Certificate of incorporation for Private and Public Ltd. Companies, certificate of commencement of Business for Public Ltd. Companies, registered partnership deed for partnership firms, Memorandum and Articles of Association in the case of Public and Private. Ltd. Companies, Address Proof and PAN Card of the Firm, ITR and audited balance sheet and profit and loss statement including a photograph of Director or Partner.

Submission of the loan application by ensuring you meet the above-mentioned eligibility criterions will enable you to avail Tata Capital car loan within 24 to 36 hours. But, failure to meet any of the eligibility criteria could lead to rejection of your car loan application.

Car Loan Eligibility Calculator: How to Check Online Instantly

To check your car loan eligibility in India instantly, you can use an online car loan eligibility calculator. This tool quickly estimates the loan amount you may qualify for based on factors like your income, age, employment type, and existing financial obligations. 

A car loan eligibility check online is convenient, saves time, and helps you understand whether you meet the car loan eligibility criteria before applying. Performing a car loan eligibility check ensures you plan your finances effectively and increases your chances of a smooth loan approval, making the process transparent and hassle-free.

Top Factors Affecting Car Loan Eligibility (2025 Update)

Several factors determine whether you qualify for a car loan in India. Understanding these can help you improve your chances and make the process smoother. When you conduct a car loan eligibility check online, lenders typically consider multiple aspects:

  • Age & Employment: Stable employment and being within the eligible age bracket matter.
  • Income & Financial Health: Higher income and a good credit history improve your chances.
  • Existing Liabilities: Outstanding loans or EMIs can impact approval.
  • Credit Score: A strong credit score is key to the car loan eligibility criteria in India.

Doing a thorough car loan eligibility check ensures a smoother approval process.

How to Improve Your Car Loan Eligibility Before Applying

Before applying for a car loan, improving your eligibility can help secure better loan terms and higher approval chances. You can take simple steps to strengthen your financial profile and ensure a smooth approval process. 

Here’s how:

  • Maintain a good credit score to boost your car loan eligibility in India.
  • Reduce existing debts and improve your debt-to-income ratio.
  • Ensure a stable employment history and consistent income.
  • Check your documents and financial records in advance.
  • Use a car loan eligibility check online to gauge your readiness.

Common Reasons for Car Loan Rejection 

Even if you meet most criteria, car loan applications can sometimes be rejected due to certain common issues. Being aware of these can help you improve your chances before you apply. 

  • Low credit score or poor credit history
  • Insufficient or irregular income
  • High existing debt obligations
  • Incomplete or incorrect documentation
  • Recent defaults or loan delinquencies

You can also perform a quick car loan eligibility check online to gauge your approval probability.

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FAQs

Is it better to finance a car or pay in full in India?

 

Financing a car lets you manage cash flow and avail structured EMIs. The car loan benefits include flexibility and convenience, making it easier to buy a vehicle. The benefits of taking car loan often outweigh paying in full, especially for preserving liquidity.

What is the biggest advantage of taking a car loan?

 

The biggest advantage of a car loan is that it allows you to purchase a vehicle immediately without paying the full amount upfront, while spreading the cost over manageable EMIs.

What are the disadvantages of long tenure car loans?

 

Long tenure car loans can increase overall interest costs, reduce financial flexibility, and risk negative equity. These are key disadvantages of financing a car that borrowers should consider carefully.

Does taking a car loan improve your credit score?

 

Taking a car loan can positively impact your credit score if repayments are made on time. Evaluating whether a car loan is good or bad helps you leverage the benefits of taking a car loan responsibly.

Who should avoid taking a car loan?

 

Individuals with unstable income, high existing debt, or insufficient savings should avoid taking a car loan, as they may struggle with EMIs despite the car loan benefits.

What is the minimum CIBIL score required for car loan eligibility in India?

 

Most lenders in India prefer a minimum CIBIL score of around 700 or above for car loan eligibility, as it reflects good credit behaviour and improves approval chances and interest rate offers.

Can I add a co-applicant to increase my car loan eligibility?

 

Yes, you can add a co-applicant to improve your eligibility. They must have a stable income and a good credit profile, which can improve overall eligibility, increase the approved loan amount, and enhance their chances of approval.

Is down payment mandatory for car loan eligibility in 2026?

 

In many cases, a down payment is required. Although it can vary by lender, vehicle type, and borrower profile.

What happens if I don't meet all car loan eligibility criteria?

 

If you don’t meet all criteria, your application may be rejected or approved with stricter terms. A car loan eligibility check online helps assess your chances and identify areas to improve first.

How can I check my car loan eligibility online instantly?

 

Simply enter basic details like income, age and credit score to complete a car loan eligibility check online instantly.

Does employment type (salaried/self-employed) change car loan eligibility?

 

Yes, employment type affects income stability assessment and documentation. Salaried applicants show fixed income, while self-employed applicants need proof of consistent earnings to meet car loan eligibility criteria.

Can NRI or resident Indian apply for Tata Capital car loan? What’s different?

 

Both NRIs and resident Indians can apply for car loans. NRIs typically need extra documentation, overseas income proof, and may have slightly different eligibility criteria and processing timelines.

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