For car loan, check lenders on their total borrowing cost and service

Select companies that offer easier terms for repayment of the loan

Vehicle loan outstanding stood at Rs 5,09,022 crore on May 19, 2023, registering a year-on-year growth of 22.2 per cent, according to the Reserve Bank of India’s monthly bulletin of July. With the festive season around the corner, more buyers are likely to approach lenders in the next few months for a vehicle loan.  

Check credit score

Lenders usually consider the credit scores of applicants while evaluating their loan eligibility. “Applicants having a credit score of 750 and above usually have higher chances of loan approval. Some lenders also offer lower interest rates to applicants having higher credit scores,” says