Documents for a Successful Car Loan Application

10 Feb 2023

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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
Voter ID  
Address Proof   Aadhaar card
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
Voter ID
Driving licence  
  Address Proof   Aadhar card
Voter ID
Driving licence
Ration card
Utility bill (telephone, electricity, or water)
Life insurance policy  
Age Proof   Birth certificate
School transfer certificate
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.

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    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.

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Check Eligibility Criteria To Get A Car Loan

Owning a car is a dream of almost every individual in India. With the ease of securing loans, buying cars, either new or pre-owned, has become an achievable dream. Banks and other financial institutions are loaning sums to many for fulfilling aspirations. Is everyone eligible for car loans? Banks make it possible for everyone to apply for and receive a car loan as long as they fulfil some criteria. Private and popular financial FinTechs are easier on the eligibility criteria for car loans if borrowers are willing to pay high-interest rates. Banks are safe and dependable sources for borrowing funds. They have thus minimised their requirements but continue to hold some as essential for ascertaining the eligibility of the candidate along with reducing their risk percentage while loaning to individuals. Let us talk about eligibility for car loans in greater detail.

Types of Car Loans

At Bank of Baroda, you can get financing of up to 90% of the on-road price of a brand new car of your choice if you opt for Car Loan . Anyone can avail of a Bank of Baroda Car Loan, subject to their eligibility. These are available for a maximum loan tenure of 7 years, and the loan amount can be as much as Rs 1 crore. The bank gives a 0.25% concession on the interest rate to its existing home loan customers with a clean credit history. What's more, Concession of 0.50% in rate of interest on Car Loans to those applicant/s who offer minimum 50% of Loan limit as liquid collateral security e.g. Fixed Deposit of our Bank, NSC, KVP or LIC Policy.

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