Car Loan Documents Required and Eligibility Checklist

Do you want to get a Car Loan? Documents required for a Car loan, List of Documents Needed for a car loan,

It is the desire of many people to own a car, be it for personal or business reasons. And it is easy to see since a car saves you the hassle of getting from one place to another. After all, you no longer have to make do with the stress that comes with relying on public transport. Better, you have the freedom to travel to any location you so desire at any time of the day.

Car Loan Documents

And thanks to car loan lenders, you can now drive your dream vehicle without taking tolls on your finances.  What is even more fascinating, the process of landing a car loan is way simpler compared to a couple of years back.  As long as you have the correct documents in place, you stand the chance of getting 100% financing when buying a car.

Luckily, the documents required for a car loan are pretty much the same for most financial lending institutions.  In this post, we will take you through the list of documents you need to have with you before applying for a car loan.

Car Loan Documents
Car Loan Documents

Documents Required

Below is the list of documents you need to have ready before applying for a car loan:

  • Identity Proof

Identity-proof documents are a must-have if you’re to avail of a car loan.  Among the most notable documents you need to have as proof of identity is an Aadhaar card, PAN card, driver’s license, Passport or voter ID.

  • Address Proof

When it comes to addressing proof applicants need to have an Aadhaar card, Passport, Driving license, Voter ID, Family Card (ration card) or Life insurance policy. You can also use a utility bill such as electricity, water or telephone.  For those who decide to use the ration card or utility bill, ensure your name is on it.

  • Age Proof

Age-proof documents are also a must-have before applying for a loan. They include birth certificate, school transfer certificate, Std.10 mark sheet and Aadhaar card.

  • Proof of Income

If you happen to be a salaried professional, you can use a salary slip, Form 16, and an income tax return document as proof of income. Things tend to be slightly different with self-employed individuals as they have to submit their profit-loss statement, audited balance sheet and income tax returns for up to 2 years.

  • Business Ownership (self-employed)

Self-employed individuals are also required to submit proof of business ownership documents. They include office address proof, maintenance bill and utility bill.  Furthermore, they must also provide a copy of the business registration license.

  • Proforma Invoice

A proforma invoice should include the price of the car to indicate the loan amount you are applying for. Keep in mind most financial lending institutions can finance up to 95% of the car price.

These are the documents you need to have with you before applying for a car loan.  Remember, you must also submit the signature verification proof together with a bank statement dated between the last 3-6 months.  It is then that you can increase your chances of landing the car loan applied.

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