When you apply for a car loan, you will need to send a set of documents so that the bank can verify the details and approve your loan application. The basic requirement of a car loan in terms of documents is identity proof, income slips, proof of age among others.
Time has changed, there are a variety of car models available in the market that it is no longer a far-fetched dream for middle-class families to buy a car. Most major financial services offer car loans. With car loans available, it has become all the easier to buy a car. Over time, the process involved in obtaining a car loan has become simplified with the online application process. With proper documentation and paperwork, some financial institutions even offer 100% cash to buy a car.
The required car loan documents are almost identical to most financial services providers. The documentation process is usually simple for paid professionals. For self-employed people, additional documentation such as income tax returns is required.
Read more to know the list of documents to be submitted at the time of applying for a Car Loan.
Car Loan Documents for Salaried Professionals
Documents Required
- Proof of Identity
- Aadhaar card
- PAN card
- Driver's License
- Passport
- Voting ID
- Proof of address
- Aadhaar card
- Passport
- Driver's License
- Voting ID
- Family card (assignment card)
- Expenses (Electricity, water, or telephone)
- Life insurance policy
Proof of Ages
- Birth certificate
- School transfer certificate
- Std. 10 Marksheet
- Aadhaar card
Proof of income
- Salary slips
- Form 16
- Tax Return Document
- Bank statement
- Bank statement for 3 to 6 months
Proof of signature confirmation
- Banks have a variety of applicants to complete and their signature
Proforma invoice
- This document contains the price quoted by the seller of the vehicle selected by the applicant. The amount of the loan will depend on the price of the car.
Self-employed car loan documents
Documents Required
- Proof of Identity
- Aadhar card
- PAN card
- Passport
- Voting ID
- Driver's license
Proof of address
- Aadhar card
- Passport
- Voting ID
- Driver's license
- Ration card
- Bills (telephone, electricity, or water)
- Life insurance policy
Proof of Ages
- Birth certificate
- School transfer certificate
- Mark Sheet
- Aadhaar card
Bank statement
- Bank statement for 3-6 months
Proof of Business Identity
To prove the business is working, the following can be followed:
- Proof of office address
- Maintenance money
- Office Bills
- Besides, the applicant must also provide a copy of the business registration license.
Proof of Salary
- Income tax return up to 2 years
- Audited balance sheet
- Profit Loss Statement
Proof of signature confirmation
- Many banks have different forms to prove the individual's signature.
Proforma invoice
- A proforma invoice containing the value of the vehicle should also be included along with other documents indicating the amount of loan you are seeking. Most banks offer 95% of the car price as a loan.
Why Car Loan Documents Are Needed
Financial institutions require a variety of documents from loan applicants in particular to ensure their financial integrity and financial stability. Thousands of people apply for a car loan every day. The financial stability of applicants varies. Many lenders including banks and financial institutions prefer to lend only to debtors. They usually verify this information by verifying the documents submitted by the loan applicant.
If your credit history is good, you can enjoy a quick car loan payment without any problems. On the other hand, people with bad credit statistics may face some restrictions from the lender. The lender may sometimes require additional documents such as loan details, credit card statements, etc. before approving the loan. Yes Bank car loan interest rate on your car loan mainly depends on the credit score you have. Yes Bank Car Loan interest rates can be changed for a borrower with a poor credit score.
In some extreme cases, bad credit history can lead to a complete rejection of a loan application. Because of all of this, paperwork and documents are some of the biggest steps you can take during the car loan application process.
Also Read:- Two-wheeler loan application and disbursal process
No comments:
Post a Comment