Documents for a Successful Car Loan Application
10 Feb 2023
Table of Content
Documents Required for Car Loan
Applying for a car loan is a great way to own a car and repay by manageable EMIs. Loans are a powerful instrument planned by financial institutes like banks, for borrowers who can aspire to a better living by planning and calibrating expenses to achieve better material goals. Loan eligibility comes with certain criteria and documents are needed to qualify a candidate for a loan. The documents are evidence of loan eligibility and a transaction between the borrower and the lender.
• General Documents
Loan documents generally include documents that each borrower is required to submit. The car loan documents list will include an individual’s KYC, and an estimate outlining the terms and conditions of the loan. This is the first paperwork that needs to be filled out by the lender. The loan contract binds the borrower to the lender for a specific period. Car loan application paperwork supplied by the borrower enables evaluation and the risk at which the lender is lending money to the borrower.
Getting a car loan has become simple through the process of an online application. Individuals can apply for two types of car loans , purchasing a new car or a used car. With the right documents and minimal paperwork, banks offer 90% and 75% financing for purchasing new and pre-owned cars. Mostly all financial institutes extend car loans. The service is relatively simpler for salaried individuals than self-employed as additional documents are required for this category.
Follow the car loan documents list below to know the documents required by the bank for car loans.
• Car Loan Documents - Salaried Individuals
Salaried individuals can get car loans easily as it is easier to estimate their creditworthiness. Owing to the consistent cash flow of their income, they follow a steady savings and expense ratio. Self-employed individuals may not always have a regular flow of income making them less creditworthy. A car loan is available for salaried individuals from private limited companies, the public sector, both central and state government employees as well as a public sector undertaking. Employees are eligible for a loan from the age of 21 years and their loan maturity tenure should not exceed 70 years. This can be included with the spouse or a co-applicant (close relative).
Car finance documents for Salaried Individuals
| Document | Requirement |
|---|---|
| Identity Proof |
Aadhaar card PAN card Driving Licence Passport Voter ID |
| Address Proof |
Aadhaar card Passport Driving Licence 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. 10th mark sheet Aadhaar card |
| Proof Of Income for Car Loan | Salary slips (for last 3 months) Form 16 Income tax return document |
| Bank Statement Signature Verification | 3 to 6 months bank statement Banks verify this in separate forms which applicants filled out along with their signature |
| Vehicle Loan Agreement | This document reflects the dealer quoted price for the car selected by the applicant. The loan amount is dependent on the price of the car. |
• Car Loan Documents – Self-Employed Professionals
Self-employed people include high-income professionals like lawyers, chartered accountants, doctors in private practice etc. Insurance agents, shop owners, freelancers and merchants attached to some sort of a trade, business, or service fall under this category. These individuals are required to go through extensive paperwork to qualify for a car loan eligibility . Documents like a lease agreement with the landlord as proof of rent paid per month, income proof, the most recent tax return certificate, and asset proof like banks statements or the title document for the car are used as collaterals, and credit report less than two years old is also used. Self-employed sole proprieties in the business of manufacturing, trading and service can apply for car loans at a minimum age of 21, their loan maturity period must not exceed 70 years.
Car finance documents Self Employed Professionals
| Document | Requirement |
|---|---|
| Identity Proof |
Aadhar card PAN card Passport Voter ID Driving licence |
| Address Proof |
Aadhar card Passport Voter ID Driving licence 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 operative, the following documents must be provided: Office address proof Maintenance bill Utility bill In addition, a copy of the business registration license must be provided. |
| Proof Of Income for Car Loan |
Income tax returns for last 2years Audited balance sheet Profit-loss statement |
| Signature Verification Proof | Banks verify this in separate forms which applicants fill out along with their signature |
| Vehicle Loan Agreement | The Vehicle Loan Agreement reflects the price of the car filed along with the other required documents asking for the maximum loan amount. Most banks offer up to 90% of the price of the car as loan |
• Car Loan Documents - Self-Employed Non-Professionals
Documents for Self Employed non-professionals follow the same requirement criteria as would for any self-employed person.
Car finance documents Self Employed Non-Professionals
| Document | Requirement |
| Age Criteria | Individuals between 21 years and below 65 years. Limited companies should be at least 3 years old |
| Income Criteria | Minimum Business stability of 2-3 years |
| Other documents | Business registration Business address proof |
Get an Instant Car Loan at the Bank of Baroda
Bank of Baroda is one of the most reliable banks when it comes to applying for car loans. Bank of Baroda car loans offers up to 90% (100% also on select models also) finance for the on-road price of a new automobile. You can get upto Rs. 5.00 crore for new car. The interest rate is calculated based on the CIBIL score of the applicant and the daily reducing balance. The bank allows a repayment tenure of up to 84 months. With an affordable processing fee, the loan is applicable for salaried, corporate, NRIs, professionals, and self-employed individuals.
The reason why the Bank of Baroda should be any car loan seeker's preferred choice is:
- The loan processing time is minimum
- The documentation process is minimum
- The bank's foreclosure charges are NIL
- The down payment is low
- Interest rates are low and affordable
You can calculate the EMI from their online Car Loan EMI calculator. Apply for a loan only from the Bank of Baroda website. Provide your email ID, and telephone number with other required information and the bank will get in touch with you. If you feel comfortable visiting the branch, visit the nearest branch. Follow the document requirements and apply and enjoy the benefits of a car loan instantly.
Popular Articles
Related Articles
-
Disclaimer
The contents of this article/infographic/picture/video are meant solely for information purposes and do not necessarily reflect the views of Bank of Baroda. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Bank of Baroda and/ or its Affiliates and its subsidiaries make no representation as to the accuracy; completeness or reliability of any information contained herein or otherwise provided and hereby disclaim any liability with regard to the same. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Bank of Baroda or its affiliates to any licensing or registration requirements. Bank of Baroda shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.
