What you need to know
Car loan eligibility rests on four things: a steady income above the bank’s minimum, a good credit score, room in your monthly budget for the EMI, and a car the bank will fund.
Basic eligibility
- Age: minimum usually 18 – 21; the loan must end before the bank’s upper age limit
- Income: typically ₹3 lakh a year minimum (SBI, HDFC Bank, Canara) or ₹25,000 net a month (PNB)
- Credit score: 750+ for smooth approval; 800+ for the lowest rates; Bank of Baroda requires 701+
- FOIR: total EMIs commonly within about 50% of net income
- Employment: salaried with a stable employer, or self-employed with 2+ years of ITRs
Minimum income by bank
| Lender | Minimum income | Other condition |
|---|---|---|
| SBI Car Loan | ₹3 lakh a year (₹4 lakh agriculturists) | Best rate for CIBIL 800+ |
| HDFC Bank Car Loan | ₹3 lakh a year (salaried) | — |
| Canara Bank Car Loan | ₹3 lakh gross a year | — |
| PNB Car Loan | ₹25,000 net a month | Loan up to 25 × gross monthly salary |
| Bank of Baroda Car Loan | As per bank norms | Minimum CIBIL 701 |
| Union Bank of India Car Loan | As per bank norms | Best rate for CIBIL 825+ |
How to improve eligibility
- Add an earning co-applicant
- Close small loans or credit card dues first
- Increase the down payment to reduce the loan
- Choose a longer tenure (only if you can prepay later)
- Apply where you already bank — pre-approved offers need fewer checks
Frequently asked questions
Can a first-time borrower with no credit history get a car loan?
Yes, many banks lend on income and banking history, but the rate may be higher; a co-applicant with a good score helps.
For information and comparison only. Loan terms, rates and rules change — confirm with the lender and read the Key Facts Statement before borrowing.