What are the documents needed for a car loan?

Are you seeking a car loan? For getting the car loan from one of the lenders, you need to submit some documents to prove your eligibility for the car loan.

In a car loan, every applicant desire to have a reasonable interest rate of car loan, affordable EMIs, easy paperwork, and quick disbursement of the loan, etc. Though the list of documents required for car loan may vary with the bank, most of the banks have a standard document checklist.

So, here is the checklist of the car loan documents that are needed.

Document checklist

Some of the typical lists of documents needed for car loan are:

•    Proof of age

•    ID proof or Identification proof

•    Car Loan application form

•    A few passports sized photographs

•    Proof of address

•    A proof of income

•    Bank statement

•    Signature verification proof, etc.

After you provide all these documents to the bank, the lender bank will evaluate if you have reasonable credit risk and will you be able to repay the car loan. These details, along with your credit report score, will determine your interest rate of the car loan.

So, it is essential to clean your existing debts so that you can get your application processed sooner. Other than improving the chances of car loan approval, it will also help you get the car loan at a cheaper rate. In case of bad credit history, the lender may ask for credit card statements documents too and verification of other loans you might have taken.

The documents required for auto loan may be more in case of some banks. So, do check with your lender bank, which additional documents are needed.

After sanction of Documentation

You will get a duly signed loan agreement along with the regional transport office set. Other than this, you might also arrange the documents such as Standing Instruction or SI Request, ECS Form, Post-dated Cheques, Security Cheques, Margin money receipt, etc.

Documents needed from salaried people:

The following documents and a filled application form, are needed for salaried class:

•    Bank statement of the past six months

•    2 passport size photographs

•    ID proof

•    Address proof

•    Income proof such as latest salary slips, Form 16

•    IT returns of past two years

Documents for non-salaried or businesspeople:

The following documents are needed for non-salaried or business class people:

•    Bank statement of the past six months

•    2 passport size photographs

•    ID proof

•    Address proof

•    Income proof such as ITR

•    Audited balance sheet

•    P&L statement

•    Shop establishment certificate

•    Sales tax certificate