Criteria to be fulfilled when availing car finance

Jul 26 2010

It is natural that lenders expect those seeking Car Finance to fulfill certain criteria and these are mentioned in the form they are required to fill when they make that application. The information helps the lender to make a decision for whom to lend or whom to refuse.
Some of the typical data asked for is as under:
a) Documentary proof of the income along with other proof of residence, returns filed for tax, bank statements and so on.
b) Credit history report of the individual. This is very important for the lender to determine whether he should be extending car finance at competitive interest rates or should he charge higher. Usually Bad Credit loans carry a much higher interest rate and stretch over a period of up to four years.
c) Information about any other outstanding loans and the monthly repayment amount being paid. This may not always be asked but is possible with some lenders who are very particular about the profile of their customers and want to reduce risk.
Customers seeking car finance must also be clear about all the terms and conditions so that they walk into it well informed.

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