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Important Documents for Applying Car Loan
Introduction
Owning a car may have been a luxury in the past. Still, with the steady economic development of the nation, gradual expansion of the city premises, and increasing demand for mobility, cars have emerged as a necessity. And easy availability of car loans has significantly improved the affordability of owning cars. By paying just 10% of the total cost of the vehicle, you can own a car today with the help of car loans.
For an easy and hassle-free car loan, you should give the documentation part its due importance. The reason being the documents required to avail of a car loan has increased considerably over the years as processes have become more transparent and stringent. Also, the list of documents needed for car loans is different for different categories of loanees, such as salaried individuals and self-employed professionals.
Here is the car loan documents checklist for different types of applicants:
Car Loan Documents for salaried individuals |
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|
Type of document |
Documents required |
Proof of Identity |
|
Proof of Address |
*Utility bill or ration card should be in the name of the loan applicant |
Proof of Age |
|
Proof of Income |
*Number of salary slips required may vary from bank to bank, from 2 to 6 months |
Bank Statement |
|
Proforma invoice |
The document would contain the details regarding the price quoted by a dealer for the car chosen by the loan applicant. |
Documents required for availing a loan for pre-owned cars for salaried individuals are the same as above.
Car Loan Documents for self-employed individuals |
|
|
Type of document |
Documents required |
Proof of Identity |
|
Proof of Address |
*Utility bill or ration card should be in the name of the loan applicant |
Proof of Age |
|
Proof of Income |
|
Bank Statement |
|
Proof of business ownership |
To prove that the business or professional activities of the applicant are operational, the following documents need to be provided:
Furthermore, the applicant must also provide a copy of the business registration license. |
Proforma invoice |
The document would contain the details regarding the price quoted by a dealer for the car chosen by the loan applicant. |
Additional Read: 8 Things to Keep in Mind While Opting for a Pre-Used Car Loan
Conclusion
Banks ask for the documents mentioned above to access the credit worthiness and financial stability of the loan applicant. As banks generally prefer to provide loan to individuals who have a good credit history and proper documentation, it is essential that you prepare your car loan documents to experience a hassle-free process.
Disclaimer–
ICICI Securities Ltd.( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Mumbai - 400025, India, Tel No : 022 - 2288 2460, 022 - 2288 2470. I-Sec is a Member of National Stock Exchange of India Ltd (Member Code :07730) and BSE Ltd (Member Code :103) and having SEBI registration no. INZ000183631. Name of the Compliance officer (broking): Mr. Anoop Goyal, Contact number: 022-40701000, E-mail address: complianceofficer@icicisecurities.com. Investment in securities market are subject to market risks, read all the related documents carefully before investing. We are distributors of Insurance and Mutual funds, Corporate Fixed Deposits, NCDs, PMS and AIF products. ICICI Securities Ltd. acts as a referral agent to ICICI Bank Ltd., ICICI Home Finance Company Limited various other Banks / NBFC for personal finance & housing related services & the loan facility is subjective to fulfilment of eligibility criteria, terms and conditions etc. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon.
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