How to get Pre-approved for a Car Loan?
A Car Loan is an incredible facility that equips you with the necessary funds to buy your dream car. You typically need to finalise your car and arrange the down payment before applying for the loan. The lender assesses your application, determines your eligibility and sanctions the loan. But what if you could skip these steps and get pre-approved for Car Loans? Let us understand how pre-approval for Car Loans works and its impressive benefits.
What is a Pre-Approved Car Loan?
A pre-approved Car Loan is one where a lender considers you eligible for a Car Loan before you even apply for one. If you are deemed eligible for a pre-approved Auto Loan, the lender sanctions and disburses the loan amount to you, after which you can buy your preferred car. Essentially, it is a system that turns the entire Car Loan process around, and gives you the flexibility to make the purchase when you want to do so.
How to Get Pre-Approved For A Car Loan?
Banks consider certain critical factors while determining whether you pre-qualify for Auto Loans. These include the following:
- You should be an existing customer with a longstanding relationship with the bank.
- You should repay your credit card bills on time and in full.
- You should consistently maintain a good credit score to qualify for pre-approved loans and easily disbursed loans such as Xpress Car Loans.
- You should maintain sufficient funds in your Savings Account and have other investments like Fixed Deposits with the bank.
- You should avoid utilising the entire credit limit on your credit card.
- You should have repaid your previous loan EMIs on time.
Benefits of Getting Pre-Approved for a Car Loan
There are several benefits of getting pre-approved for a Car Loan, such as.
- Instant fund disbursal
If you receive pre-approval for a Car Loan, you do not have to wait for the bank to sanction the loan amount. The bank disburses the loan instantly into your account, after which you can visit your preferred dealership and book your car. You simply need to accept the bank's invitation to start the process. With Xpress Car Loans, the process is just within 30 minutes to process the application
Another incredible advantage of getting pre-approved for a Car Loan is that the application process is entirely documentation-free. Since banks typically offer these loans to their existing customers, they already have your documents and credit history information. Thus you can easily skip the documentation process and proceed to book your car.
- Maximum funding
A crucial advantage of getting pre-approved for a Car Loan is that you can avail of maximum funding. If the bank believes you have fulfilled the eligibility for Xpress Car Loans however, it may offer you up to 90% of the car’s on road funding price as a loan on selected vehicles. You can get high-value loans ranging from ₹1 lakh up to ₹20 lakhs.
- Flexible repayment terms
While you can get the funds instantly, you can repay your pre-approved Auto Loan comfortably. Most lenders generally provide flexible repayment tenures lasting up to 84 months. You also have the opportunity to pre-pay your loan any time after one year without incurring a prepayment penalty. Also, since the bank deems you creditworthy, it offers attractive interest rates against the loan.
Apply for an Xpress Car Loan
Now you need not postpone your dream of becoming a car owner. If you are pre-approved, you are all set to purchase your dream vehicle. However, if you are still somewhere on the path towards pre-approval you can reduce a long-drawn application process to just half an hour and pay the dealership within 48-72 hours with your own Xpress Car Loan.
To get started with your Car Loan, click here now!
Read more on how to choose the perfect Car Loan here.
*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Xpress Car Loan at the sole discretion of HDFC Bank limited. Loan disbursal is subject to documentation and verification as per Banks requirement.