Bank Offers Zero Down Payment Option for Car Purchases, Cibil Score Crucial
Pune, 12th June 2024: Many individuals in India opt for car loans from banks to purchase new vehicles, often providing a down payment. However, some banks offer a Zero Down Payment option for select customers. This facility hinges significantly on the customer’s Cibil score, which influences loan approval, interest rates, and even full payment of the car price. The car’s price also plays a vital role, with lower-priced cars typically qualifying for this option more easily.
One of the key factors determining eligibility for Zero Down Payment is the Cibil score. Banks prefer customers with a good Cibil score, enabling them to avail of benefits like quick loan approval and low-interest rates. However, a deterioration in the Cibil score post-application may pose challenges in obtaining the loan.
Additionally, the price of the car is crucial for this facility. While it’s more readily available for lower-priced cars, individuals interested in higher-priced vehicles must meet specific criteria set by the bank.
Several documents, including income proof, Aadhar, PAN card, income tax returns, and bank statements, are essential for a car loan application. Moreover, the bank assesses if the applicant has any existing loans. If all requirements are met, the bank can easily provide the Zero Down Payment facility for purchasing a new car.
Facilitating Zero Down Payment is a strategic move by banks to attract customers and increase car sales. The convenience of not needing an upfront payment appeals to many potential buyers, potentially boosting car sales in the market.
Assistant Vice President of Banking Services, Mr. Rajesh Kumar, emphasized, “A good Cibil score opens doors to various benefits offered by banks, including the Zero Down Payment option. However, maintaining financial discipline is crucial to sustain these benefits.”
As car ownership becomes more accessible through such facilities, it is expected to stimulate the automotive industry, leading to increased production and economic growth.
