Tips to Get Car Loan Approval Quickly

The feeling of buying a car is indescribable, and with easy access to financing options, like a car loan, you don’t have to wait for months or years for it. In fact, with some simple tips, you can hasten the approval process and soon receive your card. Here’s how you can do it:

Keep Your Documents Ready

Most of the time, delays occur due to absent or incomplete documents. So, if you have all your documents prepared and ready, you can prevent last-minute trouble and delays. These are the most frequently asked documents:

• Aadhar Card, PAN card, or your passport as proof of identity.
• Electricity bill, voter id, or rental agreement as address proof.
• Your last 6 months’ salary slips, ITR, or your bank statements as proof of regular income.
• Car quote or bill from the dealer regarding your car.
• Your photos and signature proof.

Maintain a Healthy Credit Score

Your credit score is an indicator of how reliable you are as a borrower. It depends on a number of factors, one being how well you have paid off previous debts. Generally, a credit score above 750 is a score that tells the financier that you’re not as risky, which will give you faster approvals and better interest rates.

If you do have a bad credit score, then try the following to improve it:

• Pay off any old debts that you may have.
• Avoid applying for multiple loans.
• Repay older debts to keep your debt-to-income ratio under 40%-50%

Don’t Over Borrow

If you request a loan amount that is higher than your income, then the financial institution may not approve the application or take longer to make sure that you can repay the loan in time or not.

• You should keep your loan-to-value ratio realistic; the loan-to-value ratio is the portion of the car you want to finance.
• Make a down payment of about 10-20% of the car’s value to reduce what you need to borrow, which can make you a less risky borrower.

Ensure Stable Employment and Income

Financiers prefer individuals who have stable employment and income over individuals who do not when sanctioning loans.

Whereas salaried employees can offer salary slips as evidence, self-employed persons, can offer ITRs, bank statements, or even GST returns to assist in making their case. If you are in the latter group, be sure to disclose all sources of income.

Check Your Eligibility

Before you send in your application, it is worth checking the minimum eligibility criteria set by the lender beforehand. These usually include age limits, a minimum monthly income, and minimum credit rating. Eligibility calculators available on the internet can provide an instant view, and you can self-assess your chances of approval beforehand. In this way, your profile will match the requirements of the lender and you can avoid rejections and delays.

The whole point of getting your car loan approved quickly isn’t to rush the process; it’s to stay prepared with the right documentation and stay organized and transparent throughout. If you do the simple things — like maintaining a good credit score, having proper documentation, and having a stable income —then getting a vehicle loan quickly shouldn’t be a concern.