The approval of your car loan application mainly depends upon the submission of the right documents. Whether you are a salaried individual, self-employed, or a freelancer, you should be aware of what documents are needed so that the loan process becomes easy. And it consequently increases your chances of approval.
So, here we have the car loan documents checklist. Read on and learn in detail what documents are required for a car loan.
What Is the Need for Car Loan Documents?
- Identity Proof: To identify the borrower’s identity so that fraud can be prevented.
- Address Proof: To check and confirm the residential address of the loan applicant for communication.
- Income Proof: To evaluate the borrower’s repayment capacity and financial stability.
Documents Required for a Car Loan (For Salaried Individuals)
Proof of Identity and Address
- Valid Passport
- Aadhaar Card
- Voter ID
- Driving Licence
- Utility Bills (Electricity, Telephone Bill, Gas Bill)
Income Proof
- Latest Salary Slips (for the last 3 months)
- Form 16 or Income Tax Returns (ITR) for the last 2-3 years
- Bank Statements (for the last 6 months)
Employment Proof
- Employment Certificate or Offer Letter
- Employee ID Card
- Appointment Letter
Car-related Documents
- Quotation from the dealership
- Vehicle Registration Certificate (if exchanging an old car)
Additional Documents
- Passport-size photographs
- Any other document specified by the lender
Documents Required for a Car Loan (For Self-Employed Individuals)
Proof of Identity and Address
- Valid Passport
- Aadhaar Card
- Voter ID
- Driving Licence
- Utility Bills (Electricity, Telephone Bill, Gas Bill)
Income Proof
- Income Tax Returns (ITR) for the last 2-3 years
- Profit & Loss Account Statements
- Balance Sheet
Business Proof
- Business Registration Certificate (Certificate of Incorporation for companies)
- GST Registration Certificate
- Business Address Proof (Utility Bills, Lease Agreement)
Car-related Documents
- Quotation from the dealership
- Vehicle Registration Certificate (if exchanging an old car)
Additional Documents
- Bank Statements (Personal and Business accounts)
- Passport-size photographs
- Any other document specified by the lender
Documents Required for a Car Loan (For Freelancers)
Proof of Identity and Address
- Valid Passport
- Aadhaar Card
- Voter ID
- Driving Licence
- Utility Bills (Electricity, Telephone Bill, Gas Bill)
Income Proof
- Income Tax Returns (ITR) for the last 2-3 years
- Bank Statements (Personal and Business accounts)
- Client Contracts or Invoices
Professional Proof
- Registration Certificate (if applicable)
- Portfolio showcasing work history and projects
Car-related Documents
- Quotation from the dealership
- Vehicle Registration Certificate (if exchanging an old car)
Additional Documents
- Passport-sized photographs
- Any other document specified by the lender
Note: Self-employed individuals in partnership firms need to provide partnership deeds as income and business proofs.
Also Read: Understand the Benefits of Pre-Approved Car Loans in India
Documents Required for a Used Car Loan
The documents required for a car loan for a new car and an old car are mostly similar. However, depending upon the requirements of the lender, you may need to produce vehicle documents such as a registration certificate, insurance, and pollution certificate for a used car loan.
Conclusion
It is crucial to be ready with the right documents so that you can get your car loan approved quickly. Whether you are a salaried individual, self-employed, or a freelancer, make sure you provide accurate information with your car loan application. You should also double-check with your lender for any specific requirements throughout the application process.
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