Digital banking has made the once-tedious processes like loan applications into an effortless and smooth flowing online procedure. Car loans, for example, are barely a few clicks away. Nowadays, all you have to do is test-drive your car, pick the one that suits you the best, and apply for a loan immediately! However, before you rush to get your loan processed, it would be wise to ensure that you meet specific eligibility criteria that every institutional and even non-institutional loan provider will have. If you wish to speed up your car loan application and get possession of your car sooner, then you need to know the documents required for car loan and have the right materials in place.
Document checklist:
Depending on the income source, the documents required for car loan differ from individual to individual. Every individual who is applying or thinking of applying a car loan must have a car loan documents checklist that helps you keep documents handy. Be it documents required for an auto loan, and these primary documents will be a standard requirement for all:
Identity proof – You will need to show your Voter ID Card, Passport, Aadhaar Card or your Pan Card, as an identity proof, for car loan documents.
Address proof – You need to have your Aadhaar Card, Telephone or Electricity Bill, Passport, Shop and Establishment Certificate, in case you are a self-employed individual.
Income Proof – These documents tend to vary based on your source of income or earning.
Bank statement of the past six months is a must, irrespective of your source of earning
Salary slips and Form 16, if you are a salaried individual
Income tax returns, if you are a self-employed individual.
Since it is a car loan application, you most probably won’t need a guarantor of any sorts either. However, there are certain cases where your bank may require you to furnish a guarantor, like when your annual income happens to be lower than the bank’s eligibility criteria. Additionally, always remember to check with your bank or other loan providers, and know about any updates in the document list, and revision in the eligibility criteria, if any. Some banks also require more documents than others, which is why it is always advisable to consult their executives beforehand.
Once you have the documents required for car loan ready, it doesn’t take too long for the loan process to wrap up. You can apply for your car loan by filling an online inquiry form or getting in touch with your bank executives. Once you have picked a lender, your process will not take any more time. Moreover, if you are applying to institutional banks, then you can always rely on their online loan application forms and processes. Banks send executives over, for you to hand over your loan documents and just like that, your loan process is over.
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