Documents Required For A Car Loan

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Documents Required For A Car Loan

List of Documents required for Car Loan

Documents  Requirements
Application Form With signature and Photograph
Proof of identity Passport/VoterID/Aadhar/Drivers License/PAN Card
Proof of address Drivings License/Valid Passport/Job Card/Voters ID
Proof of Age Driving License/Class 10th mark sheet/Birth certificate/ TC/School leaving certificate
Proof of Income Income Tax Return/Salary slips/Bank statement/Form 16
  • For verification of borrowers, credit score, these car loan documents are required.
  • These documents are to be verified by the banks before proceeding to the car loan.

What are the Documents Required for a Car Loan?

Documents Required for Car LoanA Car loan is the best way to buy a car if you are having limited finance and the documents required for a car loan can be obtained easily. You can get financial help from the banks and NBFCs. All you need to be eligibility criteria for car loan. Banks need your documents for the approval of a car loan.

Financial institutions require loan borrowers for a number of records in order to check their integrity and financial security. Every day, thousands of people apply for car loans. Applicants’ financial security varies. Most lenders, including banks and financial institutions, tend to lend to people who have a good credit history. They usually check this detail by looking over the loan applicant’s papers.

If you have a decent credit background, you will be able to get a car loan quickly and easily. People with poor credit, on the other hand, could be subjected to lender constraints. Before accepting the loan, the lender may request additional documents such as mortgage information, credit card statements, and so on. People with a poor credit background can also be charged higher car loan interest rates.

In certain situations, a bad credit history will result in a loan application being rejected outright. Documents required for a car loan may differ as per the profiles. For salaried and self-employed profiles, there are different income documents. To get approval for a car loan, you need to submit some required documents as per the banks. After the verification process, you can get approval.

Apply for a Car Loan

Car loan depends upon some factors:

  1. Salary/Income of the individual
  2. Price of the car model
  3. Credit history
  4. Employment profile

Banks check the creditworthiness of the individuals and their profiles. If they are falling under some special categories, they can get special offers from the banks. A car loan is an easy and simple process.

To get instant approval, an individual needs to submit the documents required for a car loan. Given below is the list of documents required for a car loan for a quick approval. Check your eligibility and documents and apply now. Call Dialabank on 9878981166 to get the expert’s assistance.

Why Car Loan Documents Required?

A Car loan or any other loan for that matter, need documents to apply for the loan this is because the loan applicant needs to present proof of all the claims made to get the loan. 

In the case of secured loans, documents are even more important. It is usually seen that secured loans are designed to discharge specific type of expense and the bank facilitates this by providing enough funds to fulfil the need of the customers.

In the case of a car loan, the purpose of the loan is defined as the purchase of a four-wheeler. A bank or NBFC demands documents for a car loan due to two main reasons 

  1. They act as proof that of the applicant’s existence and claims. The proof of identity and address help the loan provider verify that the customer is really who says he is and not a fraud.
  2. The documents in case of a car loan include the evaluation offered by the car dealer to the customers which helps the loan provider determine the exact amount of requirement of the loan and to decide the terms to be offered to the applicant of the given amount.

Documents Required For A Car Loan

Documents required for a car loan are as followed:

  • Identification proof
  • Proof of age
  • Address proof
  • Application form
  • Passport size photograph
  • Income proof
  • Bank statement
  • Proforma Invoice
  • Signature verification proof

Car Loan Documents Required for Salaried Professional

Document Requirement
Identity Proof Aadhaar card
PAN card
Driving License
Passport
Voter ID
Address Proof Aadhaar card
Passport
Driving License
Voter ID
Family card (ration card)
Utility bill (Electricity, water, or telephone)
Life insurance policy
The applicant’s name must be present on the ration card or utility bill.
Age Proof Birth certificate
School transfer certificate
Std. 10 mark sheet
Aadhaar card
Income Proof Salary slips
Form 16
Income tax return document
Bank Statement 3 to 6 months bank statement
Signature Verification Proof Banks have separate forms for applicants to fill up along with their signature
Proforma Invoice
This document contains the price quoted by a dealer for the car chosen by the applicant. The loan amount will be based on the price of the car.

Car Loan Documents for Self-Employed Individuals

Document Requirement
Identity Proof Aadhar card
PAN card
Passport
Voter ID
Driving license
Address Proof Aadhar card
Passport
Voter ID
Driving license
Ration card
Utility bill (telephone, electricity, or water)
Life insurance policy
Age Proof Birth certificate
School transfer certificate
Marksheet
Aadhaar card
Bank Statement 3-6 months bank statement
Business Ownership Proof
To prove that the business is under operation, the following can be provided:
Office address proof
Maintenance bill
Utility bill
Additionally, the applicant must also provide a copy of the business registration license.
Proof of Income Income tax returns for up to 2 years
Audited balance sheet
Profit-loss statement
Signature Verification Proof Most banks have separate forms to prove the signature of the individual.
Proforma Invoice
A proforma invoice containing the price of the vehicle must also be filed along with the other documents to indicate the desired loan amount. Most banks offer up to 95% of the price of the car as a loan.

Other Papers and Documents – Income proof:

Other documents required for a car loan entail:

  • Salaried individuals:
    Latest Salary Slip and 2 years Form 16/ Income tax returns.
  • Self-Employed individuals:
    Income Tax Returns of 2 previous financial years.
  • Partnership Firms, Societies & Companies :
    Income Tax returns of 2 previous financial years along with complete financial/audit report.
  • Documents supporting customer information :
    Identity Proof, Signature Proof, and Address Proofs as per Bank norms.

Post-Sanction or Pre-Disbursement Documentation For Car Loan

After the lender has completed the post-sanction review, a series of documentation called post-sanction documents is needed.

  • Cash receipt with a margin
  • Loan Agreement duly concluded, along with ECS Form or Standing Instruction (SI) order from Regional Transport Office.
  • It is a provisional document issued by an insurance provider that provides proof of insurance coverage before the final policy arrives. ECS Form or Standing Instruction (SI) request.
  • Insurance Cover Note- It is a temporary document provided by an insurance company that provides evidence of insurance coverage before the final policy arrives.

Documents Required for State Bank of India (SBI) Car Loan

State Bank of India has the following documents required for a car loan:

  • Application form with photograph
  • Evidence of your identity
  • Proof of address
  • Previous six months’ bank statement
  • Salary slips from the previous three months for salaried employees
  • Documents such as a balance sheet and an income tax return Self-employed benefit and expense declaration
  • Quotation of car
  • Vehicle registration and insurance

Documents Required for HDFC Bank Car Loan

Documents required for a car loan from HDFC Bank, the following documents are required:

  • Photocopy of the application type
  • Evidence of your identity
  • Bank declaration for the previous six months as
  • Proof of Residence
  • Balance sheet, Income Tax Return Log, and last three months pay slips for salaried employees Self-employed benefit and expense accounts.

FAQs on documents required for a Car Loan

✅ What are the documents required for a car loan?

If you’ve made the decision to purchase a car, you’ll need to apply for a car loan. You can review a bank’s qualifying conditions and paperwork list. The documentation needed and the eligibility requirements differ from one lender to the next.

How can I get a car loan without proof of income?

You will get a car loan without evidence of income if you apply the following documents: a copy of their Business Ownership Certificate and IT returns, residential proof (where you’ve lived for a year or two), recent financial accounts, and income proof of co-applicant (if any).

Which of the following are the pre-approval documents required for a car loan?

There is no paperwork available for a car loan pre-approval. Established consumers with a strong credit background are typically offered pre-approved car loans by banks.

What are the criteria for getting a car loan?

The requirements for obtaining a car loan differ depending on the provider. A borrower must, however, be between the ages of 18 and 75, receive a minimum wage of $10,000, and have all of the paperwork required by the lender.