In most cases, the minimum age to get a car loan is 21 years, but some banks and Non-Banking Financial Companies (NBFCs) 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 a car.
There are a few factors that can help you get a car loan if you are only 18 years of age. They are:
Part time job or full-time job:
If you are a student with a part time job or have finished studying and have a full-time job, then you can show your pay slips as a proof of income to get a car loan approved by the bank/lender. Most banks/lenders look for income proof to access your repayment capability and regular income can suffice as evidence for repayment ability.
Apply with a guarantor:
It can be easier to get a car loan if you apply with a guarantor. Your guarantor must have a good, stable job and provide income proof for the same and should have a good credit score. 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.
Good credit score & history:
If you have a credit score that is above 700 and a long credit history 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 then it is very beneficial.
Large down payment:
If you make a big down payment for the purchase of your car, then the loan amount to be taken will be much lower for the car. So, banks/lenders will be willing to lend a comparatively small amount as a car loan for an 18-year-old. So, the higher the down payment on your car, the more the chances of getting your car loan approved.
To apply for a car loan, click here.