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Kotak Mahindra Bank Car Loan Eligibility

Owning a car in the millennium is a necessity rather than the luxury. However, there are still a good many people who are hard put to fork up the price of a brand new car - or even a used car. The answer to this dilemma is to take a car loan. So, if you are planning on purchasing your own car, all you need to do is check your car loan eligibility.

Kotak Mahindra Bank has made car loan a hassle-free experience. Once you have checked your car loan eligibility with Kotak Mahindra Bank, your loan can be disbursed in a short while.

Kotak Mahindra Bank Car Loan Eligibility Criteria

Kotak Mahindra Bank Car Loan Eligibility

Following are the criteria for getting a Kotak Mahindra Bank car loan:

  • All Indian residents can get a car loan from Kotak Mahindra Bank
  • Individuals must have an income of at least Rs.15,000 per month
  • They should have a permanent residence where they have resided for at least 1 year.
  • They should have been in their current employment for a minimum of 1 year.
  • They should be 21 years old or more.

More specifically, car loans are available to the following -

  • Salaried individuals
  • Self-employed individuals
  • Proprietary Firms
  • Partnerships
  • Companies

You can avail car loans for new, used, as well commercial use cars. To know more about each type of loan, visit a Kotak Mahindra Bank.

What are the factors impacting the eligibility of a car loan?

A number of factors impact your eligibility for a car loan. Some of these factors include -

  • Credit score – Credit score is a numeric indicator of your creditworthiness. It takes into account your income, your savings, and your loan repayment history. If you have a low credit score, you may be asked to provide a guarantor, additional collateral, or if the score is extremely low, you may be refused a loan.
  • Age –  You should be at least 21 years of age to become eligible for a car loan - and you must provide proof of age. It is also necessary to pay off your entire car loan before you turn 65. So age is an important determinant of eligibility.
  • Income level – Different banks have different minimum requirements. It also depends on the car you choose to buy and its price. You will be required to show proof of your income. You may add your spouse’s income to your own to become eligible for loan.
  • Debt –  The total amount of debt outstanding against you will also impact your loan eligibility - albeit indirectly. The outstanding loan impacts your debt-to-income ratio which is an important determinant of eligibility.
  • How to improve your eligibility for car loan?

    If you find that you are not eligible for a Kotak Mahindra Bank Car Loan, you can take steps to improve your eligibility.

  • Repay existing debts - If your outstanding debts are high, consider repaying most of them so that your debt-to-income ratio becomes favourable and improves your chances of becoming eligible.
  • Increase your credit score – Your credit score comprises of your debt-to-income ratio, your loan repayment history, your income, and other factors such as the number of credit / debit cards in your name - including add on cards. Closing down a card or two and repaying past debts in a timely manner will help improve your credit score.
  • Bring in Co-applicants – If you still find that you are falling short, you can bring in another earning member of your family to act as co-applicant. Their credit score will be added to your when considering eligibility. Bear in mind though that the same criteria that apply to primary applicants, will also apply to co-applicants.

Kotak Mahindra Bank Car Loan Eligibility Calculators

Kotak Mahindra Bank car loan is a hassle-free process as long as you have a reasonable credit score. If you wish to check your eligibility, you can visit the bank website and use their car loan eligibility calculator facility which allows you to enter different loan amounts and tenures along with some other information such as your credit score. The calculator will then give you a tentative idea about your eligibility and the rate of interest you are likely to be charged, as well as the EMI you will pay.

Frequently Asked Questions: Kotak Mahindra Bank Car Loan Eligibility

(1) What is car loan eligibility calculator?

A car loan eligibility calculator is an online facility provided by most banks, which gives you an idea about your eligibility for loan, the interest rate you will be charged, and the EMI you will pay. Please bear in mind that these estimates are subject to proper documentation being provided by you.

(2) What are the eligibility criteria of the Kotak Mahindra Bank car loan?

Any Indian resident over 21 years of age can apply for a car loan. There are certain other criteria based on occupation, income, and outstanding debts.

(3) What if you are not eligible for the car loan?

If you find that you are not eligible for Kotak Mahindra Bank car loan, you can bring in a co-applicant who is an earning member of your family.

(4) How can I improve my credit score?

The simplest way to improve your credit score is to pay off as much of your previous debts as you can and keep your outstanding debt at the minimum.

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