Yes, a student can get a car loan, but it can be a little difficult. There are many banks and Non-Banking Financial Companies that are willing to lend, provided there are a few criteria that are met by the student for the car loan.
All lenders have a minimum age requirement that needs to be met in order to get a car loan. In most banks or NBFCs, this minimum age requirement is 21 years, but some banks and Non-Banking Financial Companies (NBFCs) are exceptions and have a minimum eligibility age of 18 years. So, if you are above 18 years of age, you can apply for a car loan to buy your dream car.
Part time job/full-time job:
If you are a student but have a part time job or have just finished studying and now have a full-time job, then you can show your salary slips (pay slips) as a proof of regular income to get a car loan approved by your bank/lender. Most banks/lenders look for proof of regular income to access your capability to repay the car loan and proof of regular income will be needed as evidence for repayment ability.
Apply with a guarantor:
A car loan has a higher chance of approval if you apply for the loan along with a guarantor. The guarantor can be your parent, a sibling or any another relative and must have a good, stable job; provide income proof for the same; and should have a good credit score, as this can help with getting a car loan with ease. A guarantor is a person who will need to pay for your loan if you default on payments or cannot repay your car loan.
A good credit score & history:
If you have a good credit score of above 700 and a long credit history that is well maintained, then it will be easier for you to get your car loan approved. A credit score is used by the bank/lender to assess your credit worthiness. So, if you have a good credit history, it can be advantageous.
Large down payment:
If you make a large down payment for the purchase of your car, then the loan amount to be taken will be much smaller. So, banks/lenders will be willing to lend a comparatively small amount as a car loan for a student. So, the higher the down payment on your car, the more the chances of getting your car loan approved.
Good relationship with lender:
If you have a good and long relationship with the lender you are borrowing from, then this can prove beneficial in getting the car loan approved. Lenders generally prefer their existing customers to avail more credit, so if you have been a faithful customer, they will aim to help you with getting your car loan approved.
To apply for a car loan, click here.