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Car Loan Eligibility Calculator: Find Out How Much You Can Borrow
Have you tried Minemi's Car Loan Eligibility Calculator? This smart tool provides an instant estimate of your car loan eligibility based on your income, obligations, and credit profile. Whether you're looking to buy a new car or a used one, this calculator gives you insights tailored to different lenders' criteria.
Your loan estimate
Loan Eligibility
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Total interest payments
Total loan payments
Total Monthly EMI
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This page will guide you through the factors affecting car loan eligibility, help you interpret your results, and offer actionable tips to secure the best loan terms.
Updated Oct 14, 2024 · 3 min read
Written By: Shanti Singh
Lead Writer 
Edited by Priya K.
Fact Checked
Understanding Car Loan Eligibility
Car loan eligibility can vary significantly depending on the lender and the type of vehicle you're financing. Here’s what you need to know:
1. FOIR vs. Multiplier-Based Method:
Some lenders use the Fixed Obligations to Income Ratio (FOIR) method, which evaluates the percentage of your income already committed to existing EMIs. A FOIR below 50% is generally preferred.
Other lenders rely on the Multiplier Method, where your annual income is multiplied by a fixed factor (e.g., 3-6 times) to calculate the maximum loan amount.
2. Loan-to-Value (LTV) Ratio:
- New Car Loans: Lenders usually offer up to 90-100% of the car's ex-showroom price.
- Used Car Loans: The LTV for pre-owned vehicles is typically lower, often capped at 70-80% of the car's current market value.
3. New vs. Used Cars:
- New Car Loans: These have more relaxed eligibility criteria, lower interest rates, and higher LTV ratios.
- Used Car Loans: These involve higher interest rates and stricter conditions due to vehicle depreciation and limited resale value.
Factors That Impact Car Loan Eligibility
Several factors determine your car loan eligibility:
- Income Stability: A higher and stable income increases your chances of approval.
- Existing Debt: Fewer ongoing EMIs result in a better FOIR, improving your eligibility.
- Credit Score: A credit score above 700 is ideal for securing favorable car loan offers.
- Tenure Preference: Longer loan tenures enhance eligibility but may increase overall interest costs.
- Down Payment: Making a larger down payment lowers the loan amount, improving eligibility.
Tips for Using Minemi’s Car Loan Eligibility Calculator
Maximize the value of Minemi’s calculator by following these simple tips:
- Accurate Income Details: Input your total monthly or annual income correctly, including any additional income sources.
- List Existing EMIs: Include ongoing loan repayments for precise FOIR calculations
- Select the Correct Loan Type: Specify if you're applying for a new car or a used car loan to get tailored results.
- Adjust Loan Tenure and Down Payment: Experiment with these variables to find the best combination for your budget and eligibility.
- Input the Vehicle Value: Use the car's ex-showroom price for new vehicles or the estimated market value for used cars.
- Understand the Results: Review the insights provided by the calculator and follow the tips to enhance your eligibility.
How Minemi Simplifies Car Loans
Minemi’s Car Loan Eligibility Calculator goes beyond simple calculations. Here’s how it helps:
- Provides tailored eligibility results based on lender-specific criteria.
- Offers insights into improving eligibility, such as reducing FOIR or making a higher down payment.
- Helps you compare options for new and used cars with actionable recommendations.
Frequently Asked Questions
What is a Car Loan Eligibility Calculator?
How does the Car Loan Eligibility Calculator work?
Can I use the calculator without impacting my credit score?
What factors affect my car loan eligibility?
Can I get a car loan if I have an existing loan?
How does tenure affect my loan eligibility?
Can I check eligibility for both new and used car loans?
Take the Next Step
Now that you’ve calculated your eligibility, explore the best car loan options with Minemi. Whether you’re purchasing a new car or upgrading to a better pre-owned model, Minemi connects you with top lenders for competitive offers.
Get started today and take one step closer to driving your dream car!
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