Car loan documents checklist
Getting a car of your dream is no more a hassle when you have all the documents in order. To get a car loan, you will need to submit a certain set of documents to ensure the fast processing of your loan. However, the car loan documents required are similar for most of the car financiers. But it is advisable to cross-check with your bank before applying for a loan to avoid any confusion. Read here the list of all the documents that you need to submit at the time of a car loan application.
Car Loan Documents for Salaried Professionals
Proof of Identity: (Any of the following)
- Aadhaar card
- PAN card
- Driving License
- Passport
- Voter ID
Proof of Address: (Any of the following)
- Aadhaar card
- Passport
- Driving License
- Voter ID
- Family card (ration card)
- Utility bill (Electricity, water, or telephone)
- Life insurance policy
Note: If you are presenting a ration card or utility bills, then make sure your name should be mentioned in these documents.
Proof of Age: (Any of the following)
- Birth certificate
- School transfer certificate
- 10th standard marksheet
- Aadhaar card
Proof of Income: (Any of the following)
- Latest salary slips
- Form 16
- Income tax return document
Bank Statements:
3 to 6 months of bank statements
Signature Verification Proof:
Banks have separate forms for applicants to fill up along with their signature
Proforma Invoice:
This document contains the price quoted by a dealer for the car selected by the applicant. The loan amount will be based on the price of the car.
Car Loan Documents for Self-Employed Individuals
Proof of Identity: (Any of the following)
- Aadhaar card
- PAN card
- Driving License
- Passport
- Voter ID
Proof of Address: (Any of the following)
- Aadhaar card
- Passport
- Driving License
- Voter ID
- Family card (ration card)
- Utility bill (Electricity, water, or telephone)
- Life insurance policy
Note: If you are presenting a ration card or utility bills, then make sure your name should be mentioned in these documents.
Proof of Age: (Any of the following)
- Birth certificate
- School transfer certificate
- 10th standard marksheet
- Aadhaar card
Bank Statements:
3 to 6 months of bank statements
Proof of Business Ownership:
To prove your business is under operation, you can provide the following documents:
- Address proof of your office
- Maintenance bill
- Utility bills
Additionally, the applicant will also have to submit a copy of the business registration license.
Proof of Income: (Any of the following)
- Income tax returns for up to 2 years
- Audited balance sheet
- Profit-loss statement
Signature Verification Proof:
Most of the financial institutions have separate forms to prove the signature of the individual.
Proforma Invoice:
A proforma invoice contains the vehicle's price. It should be filed along with the other documents to indicate the desired loan amount. Most banks offer up to 95% of the price of the car as a loan.
Importance of documentation while getting car loans
Financial institutions ask for the various documents from the applicants to verify their credibility and financial stability. With the help of these documents, banks and NBFCs evaluate the creditworthiness of the applicants.
If you have a good credit history, you can enjoy quick disbursement of car loans without any hassles. On the other hand, people with low credit scores may face certain restrictions from the lender such as outright loan rejection or higher rate of interest.
Considering all the important things mentioned-above, paperwork, and documentation are one of the major steps that you cannot skip during the car loan application process.
