{"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

    \n
  1. Always aim for a credit score of 750 and above<\/li>\n
  2. Always have updated income documents<\/li>\n
  3. Don’t miss monthly payments on credit cards and loans<\/li>\n<\/ol>\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":"\nWhat's The Minimum Credit Score To Get Car Loan in India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/aayushbhaskar.com\/credit-score-car-loan\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What's The Minimum Credit Score To Get Car Loan in India\" \/>\n<meta property=\"og:description\" content=\"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 …\" \/>\n<meta property=\"og:url\" content=\"https:\/\/aayushbhaskar.com\/credit-score-car-loan\/\" \/>\n<meta property=\"og:site_name\" content=\"Aayush Bhaskar\" \/>\n<meta property=\"article:published_time\" content=\"2020-08-05T15:29:16+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-07-30T13:06:22+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/aayushbhaskar.com\/wp-content\/uploads\/2020\/08\/The-Minimum-Credit-Score-to-Get-a-Car-Loan-Approval-in-India.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"1080\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@AforBhaskar\" \/>\n<meta name=\"twitter:site\" content=\"@AforBhaskar\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\">\n\t<meta name=\"twitter:data1\" content=\"2 minutes\">\n<!-- \/ Yoast SEO Premium plugin. -->","gt_translate_keys":[{"key":"link","format":"url"}],"_links":{"self":[{"href":"https:\/\/aayushbhaskar.com\/wp-json\/wp\/v2\/posts\/2062"}],"collection":[{"href":"https:\/\/aayushbhaskar.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/aayushbhaskar.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/aayushbhaskar.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/aayushbhaskar.com\/wp-json\/wp\/v2\/comments?post=2062"}],"version-history":[{"count":0,"href":"https:\/\/aayushbhaskar.com\/wp-json\/wp\/v2\/posts\/2062\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/aayushbhaskar.com\/wp-json\/wp\/v2\/media\/2071"}],"wp:attachment":[{"href":"https:\/\/aayushbhaskar.com\/wp-json\/wp\/v2\/media?parent=2062"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/aayushbhaskar.com\/wp-json\/wp\/v2\/categories?post=2062"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/aayushbhaskar.com\/wp-json\/wp\/v2\/tags?post=2062"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}