Car Loans India

I can still remember that day when the bank, where I applied for car loan, rejected my loan application. I was so disappointed that I immediately called up the phone to know the reason of loan rejection. I was completely taken back by the reason of loan rejection as I did not pay attention towards this factor before applying for the loan. Let's have a look on some of points which can become reason of car loan rejection-

• Credit rating: The main reason of loan rejection can be low credit rating. CIBIL is India's credit information bureau who collects data about the credit history of people. If there would be frequent default in credit card payments, or EMI then it could lower your credit rating and can become reason of your loan rejection.

• Annual income: The annual income of the person is also the reason of loan rejection. Lenders check the disposable annual income of the person to know whether the concerned person can afford repayment or not. Applicant is required to submit bank statement, which tells about the financial condition. It means, if the lender will observe that your financial condition is not viable then your loan application can be rejected.

• Overdue account: If the applicant has already exceeded the credit limit then lender can reject your claim.

• Dependents: If the borrower has many dependents then also lender can reject loan application as the person would find it difficult to repay loan amount.

• Job stability: If the borrower is on the job for a long time then it shows some stability and therefore, there would be more probability that lender will accept your loan application. However, if you have changed jobs frequently then it could become reason of loan rejection. EMI calculator for car loan | HDFC bank car loan