In this paced urban life, a car is no luxury but a necessity for your commute. Cars are your next best investment after buying a house. Getting the right car for yourself is no easy task. But not only that, selecting the right financer for your car loan is crucial too.
A car is an expensive purchase and so are its mistakes. The wrong financer can attract some unwanted troubles to your life. That is why you must select the right financer after comparing all available options.
While financing, another important question that pops up is can you get 100% finance? The answer to this is ‘Yes, you can!’. Lenders have zero down payment options. A loan where the borrower is not required to make any down payment towards the purchase is known as a zero down payment car loan. The banks or the financers offer car finance up to the on-road price of the car and so they are also called as 100% finance options. Although, this facility is limited to certain models and manufacturers only.
This option is ideal for those who wish to have their dream car but lack funds to make the down payment. A down payment is an initial amount paid by the borrower towards the cost of the car. This has an effect of reducing the amount of loan to be borrowed.
Let us understand some features of Zero Down Payment Car Loan –
- Your car financer funds the entire cost of the car and you are not required to make any payment towards it.
- Any add-on like accessories and other optional customizations are not covered under this car loan.
- You must have a good credit score for availing 100% finance on your car loan.
- There are certain loan processing fees that might be required to be paid upfront at the time of availing finance.
- An important point is that your cost of the car should not exceed your annual income as provided in your return of income.
Now that we know the features of 100 finance option, let us look at the car loan eligibility criteria
- The minimum age of the applicant shall be 25 years.
- The credit score shall be over 800 without any negative loan repayment history.
- The amount of car loan shall not be more than the applicant’s net annual income. Any existing loans with the proposed EMIs shall be less than 50% of the applicant’s monthly income.
- The balance in the account of the applicant shall be thrice the amount of the proposed EMI.
- There shall be no rejection of any cheques due to insufficient funds during the last six months.
- The applicant must have a permanent address at the palace of his residence for at least two years.
Keeping the above points in mind, get your favourite family car with a complete finance option. You sure can save on some of your hard-earned money and avail a 100% finance option.