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Detailed car loan document checklist

If you have been holding off that dream of buying your dream car, it is time to fulfil it. Yes, it has become rather easy to purchase a car today, thanks to various banks, NBFCs and auto dealers offering loans for cars. You can purchase a car on loan by paying a small interest rate and affordable EMIs (equated monthly instalments) over tenures of up to 7 years. As long as you can prove that you fall in the lenders’ eligibility criteria, that you have the capacity to repay the loan, and have the documents in order, your request for a car loan is easily sanctioned.

Detailed checklist of documents for car loan

To ensure that you face no obstacles in getting your loan processed; you must furnish all of the following documents required for auto loan. They are as under:

Proof of Identity: To qualify for any loan in India, you should be able to provide proof of identity. Valid proof of identity documents are those that are issued by the government of India and are embossed with your photograph on it. While you should always carry your original proof of identity documents for verification, you must also provide photo-copies of the document submitted along with your car loan application. You can provide one of the following documents as proof of identity:

• Aadhaar Card
• Passport
• Driving license
• Voter’s ID
• PAN card

Proof of address: You must also furnish your proof of address along with your auto loan application. Typically, a proof of address document is one which has your permanent address mentioned on it. However, if your current residential address differs from your permanent address, (in case you are living in a different city or a rented facility); you must also provide your current address details. If your current and permanent addresses are the same, you need to mention it on the loan application form. Note that if you are living in a rented facility, you may have to provide a notarised lease as proof of address. You can provide any of the below government approved documents as proof of address:

• Aadhaar Card
• Driving license
• Ration Card
• Passport
• Electric Bill (for current address)
• Telephone Bill (for current address)
• Notarised lease

Proof of income and employment: Lenders approve your loan application only if they are convinced that you have the capacity to repay the loan amount. As a result, your car loan documents checklist also includes your proof of employment documents. You need to furnish details of your current employment status including the duration you have been employed, a letter of employment/offer letter, salary slip of the last 3-6 months, as well as bank statements of the last 6-12 months and Form 16. Applicants who are self-employed or business owners are required to furnish proof of business, bank statements of business accounts along with IT returns of the last 3 years.

Photographs: You must also provide 2 recent, coloured, pass-port size photographs with your loan application.