What does a zero down payment car loan mean?
The type of car loan where you do not have to make a down payment is called a zero down payment auto loan. In the case of such loans, the bank agrees to fund the value of the car completely. Thus, such loans are sometimes also called “100% finance.” This car loan is something that’s perfect for someone who wants to buy a car through a loan but does not have sufficient funds to make a down payment. On that note, given below are more details about zero down payment car loans as a financing option.
Features of a car loan with zero down payment
There are three main features that you need to note about car loans that need zero down payment.
● As mentioned before, you do not have to make a down payment because the bank is going to fund the cost of the car completely. However, it is necessary to note that in case you want some other car accessory, its cost will not get covered 100% by car financing.
● A good credit score is a must for a car
loan with zero down payments.
● The borrowers will need to pay the
necessary processing fees to the bank when taking a car
loan with zero down payment.
What are the eligibility criteria for a car loan?
· Age: The minimum age of a borrower has to be 25 years or more.
· Income: If you are a salaried individual, you need to have a minimum yearly income of Rs.2.50 lakhs. Present loan EMIs, along with the existing loan EMI, should be less than half of the applicant’s salary.
· Credit Score: A good credit record can go a long way in making sure your loan application is successful. So, the higher the credit score is, the better are your prospects of getting the loan approved.
· Nature of the employment: The borrower can be a salaried person or a self-employed individual with a minimum work experience of nearly 3 years.
· The value of the car: The more the value of your car, the lesser the chances of receiving 100% finance from the bank.
· Present relationship with the bank: If you are an existing customer with a reasonably good record, you have a better chance of getting zero down payment for your loan.
Documents required to apply for a car loan
All the documents that you need to submit might vary from one bank to another. But there are a few general documents that are needed for all kinds of loans, including zero down payment car loan:
● ID Proofs: Aadhaar Card, Passport, PAN Card, Driving License, Voter ID Card, etc.
● Address Proofs: Aadhaar Card, Ration Card, Voter ID Card, Utility Bills (Phone Bill, Electricity Bill, etc.), PAN Card, etc.
● Income Proofs: Certified Profit and Loss Statements, ITR of last two years, last three months’ payslips.
● Earlier loans or the vehicle ownership documents, such as the RC of the old car and the loan agreement, are alsonecessary.
So, have you always wanted to own a car but kept the plans on hold because of the hefty down payment? Now, ICICI Bank makes it easy for you to bring home your car by offering a car loan up to 100% of the on-road price. For more details, contact the bank right away and talk to a representative about the matter.
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