If you’re looking to buy a car, then opting for a car loan is one of the best options for you. A car loan is a secured loan that provides funds to help purchase a car. This car can be a new car or a used car. It is also possible to get a top up loan against the car which provides funds that are unconditional and can be used for any particular purpose. The loan against car or top up car finance acts like a personal loan which is secured against a car.
There are many lenders offering car loan which makes it easy to choose and apply for a car loan. With digital banking, many lenders have online loan application procedure where borrowers can fill in a form online and apply for car loans.
Whether you make a car loan application online or offline, the lender will require you to submit a list of documents. These car loan documents are essential for a lender to assess your eligibility before deciding on your loan application.
The documents required for car loans depend on the type of borrower I,e salaried borrower or self employed borrower. There are some documents that are common to both types of borrower and others that are peculiar to each type. It is important to provide as many documents as possible to the lender for them to assess your loan application.
Documents common to salaried borrower and self employed borrower:
- Proof of identity (Aadhar card, Passport, PAN card, Voter id, Driving License, job card issued for MNREGA, ID card issued by Central Government, State Government departments, Public Sector Undertakings, Commercial banks, Letter issued by Defence personnel of the Army, Navy, Air Force, Central Reserve Police Force, Border Security Force, Indo-Tibetan border force, Central Industrial Security Force, Sahastra Seema Bal)
- Proof of Address (Aadhar card, Passport, Voter ID, Driving License, MNREGA job card, Electricity bill, Telephone bill, Gas bill, Property tax, Bank account passbook, Pension payment orders)
- Cheque to cover loan processing fees
- Passport size photos
Documents specific to a salaried borrower:
- Last 3 months salary slips
- Latest Form 16 and Income tax returns
- Bank statements showing proof of salary credits
- Appointment letter or offer letter if the applicant has not worked for more than one year
- Bank statement for the last 6 years showing repayment of any outstanding loans
Documents specific to a self employed borrower:
- Income tax returns along with a computation of income for the last 3 years. This has to be attested by a CA
- Balance sheet and profit and loss account for the last 3 years attested by a CA
- Bank statements for the last 6 months for the business and the individual
- Details of what the business does
- Form 26AS
- List of directors and shareholders if it is a company attested by a CA or CS
- Memorandum and Articles of association
- Partnership deed for firm or LLP
Details of any existing loan of the business or individual such as type of loan, security, outstanding balance, installments etc
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