Has anyone here taken a car loan with a bad credit score? Is it even possible in India? What kind of interest or conditions should I expect?
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Yes, it’s possible to get a car loan with a low credit score in India, but it comes with conditions such as-
- You will have to pay larger down payment (approx. 30-40%) and less amount of loan
- Consider to improve your CIBIL before applying by clearing your previous dues, maintaining low credit utilization etc.(Tips to improve your credit score-Ways to improve your credit score fast in India)
- Consider applying for the loan with a co-applicant or guarantor who has a better credit score.
- Got a car loan with bad credit and a high interest rate, pay EMIs on time and improve your credit score you could refinance to a lower rate in a year or two and save big over the loan’s term.