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Syndicate Bank Car Loan Eligibility

Syndicate Bank is one of the oldest public sector banks in the country. It has been serving the banking needs of more than two generations and evolving its product offerings to meet the new age demands of customers. With more than 500 branches across the country, Syndicate Bank offers a variety of financial products from savings accounts to loans and fixed deposit schemes. Syndvahan is the car loan product offered by Syndicate Bank and quite sought after due to the attractive features of the product. One can receive up to 85%of the on-road price of the vehicle with Syndicate Bank and loan repayment period of 85 months.

Syndicate Bank offers the facility of applying for loans online through their official website. Post submission of required documents for the loan, the bank assesses the eligibility of the customer to avail the loan as per the guidelines laid out. Through Syndvahan, one can purchase a four-wheeler and two-wheeler at competitive interest rates. For availing the car loan from Syndicate Bank, one must meet the basic eligibility criteria that has been laid out by the bank.

Syndicate Bank Car Loan Eligibility Criteria

Syndicate Bank Car Loan Eligibility

Before applying for a car loan, it is important to check the car loan eligibility criteria of the bank. This helps in ensuring a complete application and avoids the chance of loan rejection from the bank. The car loan eligibility criteria for Syndicate Bank car loan is mentioned below.

The following criterion for taking a car loan from Syndicate Bank is only for new four-wheeler vehicles.

  • Applicants must have a minimum income of Rs. 2 lac per annum or above.
  • Any individual is eligible to apply for this car loan.
  • Any proprietor, partnership firms, societies and legal entities such as HUF, Directors or Employees of private companies are eligible to apply for a car loan from Syndicate Bank.
  • The bank will offer a maximum of 85% on-road price of the new vehicle and Rs. 10,000 towards accessories.
  • The vehicle that will be purchased is to be hypothecated with the bank.
  • Third party guarantee requirement is waived off.
  • The rate of interest on the car loan is determined by one-year MCLR + 0.75% for the non-salaried class and salaried class where salary is not credited into Syndicate Bank account.
  • For the salaried category wherein, salary is credited into Syndicate Bank account and a minimum CBIL score of 700 is maintained, the rate of interest is calculated with one-year MCLR + 0.50%.
  • The repayment period of the loan is 84 months.

The following documents are required to complete the processing of car loan from Syndicate Bank:

  • Application form for the loan filled up
  • Proof of age such as Aadhar, PAN. Driving license etc.
  • Proof of identity such as Aadhar, passport, voter’s ID, PAN card etc.
  • Residential proof
  • Proof of income
  • Recent passport size photos
  • Proof of verification of signature
  • Bank account statement and other bank documents requested

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

The eligibility for a car loan depends on various factors. The main points affecting the eligibility are:

Credit score –  The bank checks for your credit score when an application for a car loan is submitted. It reflects your financial condition and helps decides the terms and conditions of the loan requested. A healthy credit score hovers above 700. A high score helps your loan to be considered. A low credit score reduces your chances to get a car loan.

Age –  Most banks maintain the minimum age requirement for taking a car loan at 18 years. The loan needs to be closed by the age of 65 years. Banks prefer customers who have a long working life so that there are no bad debts.

Income level – All banks have minimum income requirement to apply for a car loan. The proof of your income also needs to be submitted to the bank. If one is not able to meet the minimum criteria, it is possible to apply for the loan jointly with your spouse or include your spouse’s income to increase the eligibility.

Debt –  Banks offer car loans based on your current financial health condition. Debt to income ratio is considered highly during a car loan application process. It is advisable to close out remaining debts before applying for a car loan as this will reduce the chances of loan rejection.

How to improve your eligibility for car loan?

One can take some simple steps to improve the eligibility criteria for a car loan.

Repay existing debts – It is prudent to pay off all existing debt before applying for a car loan. Banks conduct thorough background checks before sanctioning a cheque. Debts indicate pending liability and does not show well on your financial status. It is important to pay off debts to ensure that the car loan application is successful.

Bring in Co-applicants –  One can add a co-application to the car loan application to strengthen the eligibility. The co-applicant can be spouse, parents, sister or brother.

Increase your credit score –  Having a good credit score helps in securing a car loan. It is better to clear out your debts such credit card payments, closure of existing loans and any other debts. Banks depend on credit score before deciding on car loan approval.

FAQs

(1) What is the maximum amount of car loan offered by Syndicate Bank?

Syndicate Bank offers a maximum of 85% on – road price of the car as a loan. This comes with additional Rs. 10,000 for accessories.

(2) What are the minimum income criteria for a Syndicate Bank car loan?

The applicant must have a minimum income of Rs. 2 lacs while applying for a Syndicate bank car loan. If the applicant does not meet the basic requirement, it is possible to include the spouse’s income in the application.

(3) Can we apply for a car loan online with Syndicate Bank?

Yes, it is possible to apply for a car loan online with Syndicate Bank. This helps in speedier processing of the loan and faster disbursements.

(4) Who are eligible to apply for a car loan with Syndicate Bank?

Any individual can apply for a car loan with the Syndicate Bank. Proprietors, Partnership firms, Trusts, Societies and other legal set-ups except HUF and Directors or employees of corporate companies are eligible to apply for a car loan.

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