A good CIBIL score of 750 is considered for car loan. However, the credit score requirement may vary depending on different eligibility criteria. It may seem impossible to apply for a car loan, if you do not have a credit history, but you can still get one from institutions. However, the plan will constitute of a very high interest rate.
To increase your chances for securing an auto loan, you must have a sound credit history that can convince the lenders about your repayment capacity. For a loan on car, there s no need of collateral as the car itself serves as one. Thus, it becomes more important that you prove yourself as credit reliable to banks.
Sometimes a score of 600 can be considered as safe to grant a car loan, but the criteria will differ based on bank to another. Taking a car loan on good CIBIL score can help getting attractive interest rates. Also high credit score forms for better eligibility to seek other loans and credit cards. Having a decent CIBIL score will form an impression to banks that you are the right candidate for taking credit, even if you do not provide additional security for debts.
A poor CIBIL score will deny you to buy your dream car on loan, for which you will then have to apply for a loan from other places, with possibility of burdening with higher rate of interest. Thus, keep your financial records clean, and enjoy a faster process for car loans.
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