{"id":2062,"date":"2020-08-05T20:59:16","date_gmt":"2020-08-05T15:29:16","guid":{"rendered":"https:\/\/aayushbhaskar.com\/?p=2062"},"modified":"2022-07-30T18:36:22","modified_gmt":"2022-07-30T13:06:22","slug":"credit-score-car-loan","status":"publish","type":"post","link":"https:\/\/aayushbhaskar.com\/credit-score-car-loan\/","title":{"rendered":"What’s The Minimum Credit Score To Get Car Loan in India","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"
Planning to buy a new car?<\/p>\n
The first thing you need to check is your credit score. Before you select a car, plan your EMIs and prepare your budget you need to know if you’re going to get a loan or not.<\/p>\n
The credit score is the single most essential factor banks consider when approving a loan. Especially car loans and credit card applications.<\/p>\n
Depending on your credit score, your interest rate is defined as well. You can save a decent amount of money over a course of time with a high credit score.<\/p>\n
The credit score ranges between 300-850. In case of applying for a car loan, the minimum credit score to get approval is 730. However, you might get a higher interest rate than usual.<\/p>\n
If your score is 750 or above, chances are you will get instant approval on up to 90% of the ex-showroom price of the car you choose.<\/p>\n
Preferably I would say you should have a credit score of 750 like most CAs and finance experts would.<\/p>\n
But from my personal experience, I got a car loan with a credit score of 730.<\/p>\n
A few months back purchased my first car – a Hyundai Venue SX. Being a teenager, I didn’t have a year-long credit history.<\/p>\n
Instead, I had 7 months of credit card transaction history to support my loan application.<\/p>\n
I made a few mistakes of not paying the credit card bill on time – I thought I had successfully set up the auto-debit feature and the bill would get paid without my involvement.<\/p>\n
That wasn’t the case. I ended up missing 2 payments and my credit score went down to 730.<\/p>\n
I still got my loan approved with ICICI bank.<\/p>\n
What I learned in the process were three big lessons:<\/p>\n
Although it is possible to get a car loan at 730 credit score, you should positively try to improve it and take it above 750. That’s the ideal score to become a decent finance consumer in the eyes of financial institutes.<\/p>\n
Any score below 750 is considered moderately poor.<\/p>\n
It directly means you have missed payments, you’ve been fined for the delayed bill payments or have defaults. All of which is a nightmare for you as banks notoriously dismiss any application with default or missed payments in their credit reports.<\/p>\n
The best Indian banks to get a fast car loan approval with a minimum credit score of 730 are HDFC, ICICI and IndusInd banks.<\/p>\n
I hope you got the answer to your question. The next step is to apply for a car loan with at least 20% of the downpayment in hand. If your credit score is above 750, you’ll get 90% of the ex-showroom cost of the car.<\/p>\n
Make sure you save at least 20% of the car cost to cover insurance, tax and other unforeseen costs that may occur.<\/p>\n
Any questions? Let me know by leaving a comment below.<\/p>\n","protected":false,"gt_translate_keys":[{"key":"rendered","format":"html"}]},"excerpt":{"rendered":"
Planning to buy a new car? The first thing you need to check is your credit score. Before you select a car, plan your EMIs and prepare your budget you need to know if you’re going to get a loan or not. The credit score is the single most essential factor banks consider when approving …<\/p>\n","protected":false,"gt_translate_keys":[{"key":"rendered","format":"html"}]},"author":1,"featured_media":2071,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[12],"tags":[16],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/aayushbhaskar.com\/wp-content\/uploads\/2020\/08\/The-Minimum-Credit-Score-to-Get-a-Car-Loan-Approval-in-India.png","acf":[],"yoast_head":"\n