7 Essential Tips Before Applying for a Car Loan to Avoid Rejection
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Car Loan Rejection? Master These Rules Before Applying!
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News18•14-03-2026, 14:59
Car Loan Rejection? Master These Rules Before Applying!
•Ensure your CIBIL score is 750+; check 3-6 months prior and improve if needed.
•Meet eligibility: age 21-65, stable income (₹25k+ for salaried, 2-3 years business for self-employed).
•Maintain Income to Debt Ratio: Total EMIs, including car loan, must not exceed 50% of net monthly income.
•Make a 15-20% down payment to reduce bank risk and interest, even if 100% funding is offered.
•Prepare all documents (Aadhaar, PAN, ITR, bank statements) and understand interest types, processing fees, and pre-payment penalties. Avoid applying to multiple banks simultaneously.
