Owning a vehicle is an aspiration for most people, be it for personal or professional use. For those who have second thoughts due to affordability, Vehicle loans are the wind beneath their wings.
Today anyone can become more independent by purchasing a vehicle given the accessibility to two wheeler loans. Several lenders offer this loan at competitive interest rates and repayment tenures.
Listed below are the types of Vehicle loans you can avail:
- Used car loan
- Commercial vehicle loan
- New car loan
- Two-wheeler loan
Here are some of the much talked about benefits of Vehicle loans
- Savings are better off to be kept as a security for untimely need, and Vehicle loans provide a cushion without having to exhaust your savings.
- These loans can be repaid over a time duration, which a borrower may deem comfortable.
- Today a significant number of lending institutions provide 100% finance on the showroom price, allowing the borrower to buy a vehicle immediately.
- There is no requirement of collateral since your vehicle acts as one.
To pass vehicle loan eligibility, the borrower must be:
- An Indian national residing in or outside India.
- Can be salaried, professional, business owner or self-employed.
- Must be at least 21 years or below 65 years.
- Must be working in their current job for a year or two.
Impact of credit history on a Vehicle loan
A good credit score can help the borrower avail Vehicle finance quickly since it is an indicator of your future credit habits to the banks. A satisfactory credit rating will also allow you to avail loan of a higher amount and longer tenure.
Longer tenure loans can lower the impact of the credit burden on the borrower. Additionally, it can help in availing pre-approved loans with quick disbursals. A good score can also encourage the lender to decrease the interest rates that eventually allows a borrower save on interest payments.
Additional Read: All you Need to Know About CIBIL Score
Steps to improve your CIBIL score for bike loan or car loan
• A clean repayment record –
Make sure you don’t default on previous loan EMIs and credit card debt if any as that negatively impacts your credit rating.
• A healthy mix of credit –
Do not apply for a slew of unsecured loans. The lesser number of previous unsecured loans you have, the better. Why? Because, if your application reflects that you are continuously in excessive need of credit, your CIBIL score will suffer.
• A frequently review credit history –
Monitoring your score and credit report regularly can help in systematic decision-making and in understanding your eligibility for future loan applications.
Additional Read: How to Check Your CIBIL Score Online
To sum up
Are you still wondering whether to get that dream bike or car? Before it’s too late, reach out to Tata capital and apply for a vehicle loan at enticing interest rates and flexible repayment tenure. You can also check your car or bike loan eligibility by logging on to our website or giving us a call today!