If you really think about it, it's easier getting a loan for a car than a loan for bus fare!
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    Car Loan Documents Checklist (Updated)

    With the range of car loan products available in the market, it is no longer a distant dream for a middle-class family in India to own a car. Most major financial service providers operating in the market provide car loans for their customers. In the recent days, the process involved in getting a car loan has been made simple through online application. This trend has made it possible for many individuals to easily access car loans. With proper documents and paperwork, some financial institutions even offer 100% financing to buy a car.

    The paperwork involved in the application process has been made simpler in the recent days. Still, it is necessary for an applicant to submit a list of documents in order to avail car loan. The car loan documents required are pretty much the same for most financial service providers. The documentation process is usually simpler for salaried professionals. For self-employed individuals, some additional documents such as income tax reports are required in order to successfully avail car loan.

    Why Car Loan Documents Are Required?

    Financial institutions seek various documents from loan applicants mainly to verify their credibility and financial stability. Thousands of people apply for car loan everyday. The financial stability of applicants vary from one person to another. Most lenders including banks and financial institutions prefer to offer loans only to creditworthy individuals. They typically validate this information by verifying the documents submitted by a loan applicant. Once you have submitted all the required documents, these financial institutions conduct a check on the applicant’s credit score and financial position.

    If your credit history is good, you can enjoy quick disbursement of car loans without any hassles. On the other hand, people with bad credit score may face certain restrictions from the lender. The lender may sometimes require additional documents like mortgage details, credit card statements, etc. before approving the loan. The lender may also charge higher interest rates for people with bad credit history. In certain extreme cases, poor credit history may lead to the outright rejection of a loan application. Considering all this, paperwork and documentation is one of the major steps that you cannot skip during the car loan application process.

    Car Loan Documents Required for Salaried Professionals

    The following documents are typically required for salaried professionals when they apply for a car loan with a financial service provider.

    Identity proof - An identity proof is any official document with the applicant’s photo identity in it. Generally, copies of various documents such as Aadhar card, PAN card, driving license, passport, voter ID, etc. can be used as identity proof.

    Address proof - Any official document bearing your correct residential address can be used for this purpose. Many official documents such as Aadhar card, passport, driving license, voter ID, family card (ration card), utility bill, etc. can be provided for this proof. The applicant’s name must be present in the ration card or utility bill when these are used for submission.

    Age proof - Many banks and lenders require age proof along with other documents. Some of the acceptable age proof documents include birth certificate, school transfer certificate or marksheet, Aadhar card, etc.

    Income proof - Proof of income is a must for salaried individuals. Only by establishing proof of income, an individual can prove that he or she is capable of repaying the car loan. Most banks seek at least three salary slips from the applicant to establish income proof.

    Bank statement - This provides further proof of financial stability and income from the applicant. Financial institutions may ask bank statements for 3 months to 6 months depending upon their internal requirements. Make sure that the bank statement you provide is for the account in which you receive your salary.

    Signature verification proof - This is mostly used by banks to verify the signature of the applicant. Banks have a separate forms for applicants to fill up along with their signature.

    Proforma invoice - This contains the price quoted by a dealer for the car chosen by the applicant. The loan amount will be based on the price of the car.

    Car Loan Documents Required for Self-Employed Individuals

    Most of the proofs required for self-employed individuals are the same as that of salaried individuals. However, banks may require some additional documents to validate the creditworthiness of a self-employed individual. For salaried professionals, the income is credited regularly every month. Monthly income is not something that is consistent for self-employed professionals. Hence, these additional documents are required to establish consistency in the annual income of the self-employed individual.

    Identity proof - Any documents with photo identity including Aadhar card, PAN card, passport, voter id, driving license, etc.

    Address proof - Any official document that carries the residential address of the individual. This includes Aadhar card, passport, voter id, driving license, ration card, utility bill (telephone, electricity, or water), etc.

    Age proof - Birth certificate, school transfer certificate or marksheet, Aadhar card, etc. to establish the age of the applicant.

    Bank statement - Bank statement for 3 months to 6 months to establish the financial soundness of the individual.

    Business ownership proof - Office address, maintenance bill, or utility bill to prove that the business is under operation. Moreover, the applicant must also provide a copy of the business registration license.

    Proof of income - Income tax returns for up to 2 years is required to prove that the individual is paying taxes to the government. In addition, other documents like audited balance sheet and profit-loss statement must also be filed with the lender.

    Signature verification proof - This is required to establish the correct signature of the applicant. Most banks have separate forms to prove the signature of the individual.

    Proforma invoice - A proforma invoice containing the price of the vehicle must also be filed along with the other documents to indicate the desired loan amount. Most banks offer up to 95% of the car’s price as loan.

    A filled up application form must be provided along with all the other documents listed here. Photograph of the applicant is needed in both cases.

    These are some of the documents required while applying for a car loan. It must be noted that the car loan documents required may vary among financial institutions. Most banks provide the list of required documents in their official websites. If you are not clear about the documents required, you can contact the bank’s customer service or visit the branch and enquire about the documents required for car loan application. It is also necessary to make sure that all documents are up to date and relevant. Once these documents are submitted with the financial institution, the documents will be verified and the application process will be initiated.

    Car Loan Document Checklist Reviews

    • HDFC Bank Car Loan
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have been holding my car loan with HDFC bank previously,they gave me loan amount based on the vehicle price,and the rate of interest they have charged me was nominal,and even they have charged me processing fee which was okay,now i have closed this loan.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Mar 23, 2019
    • Kotak Car Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      I took a Car loan from the KOTAK MAHINDRA BANK . Their rates are much cheaper that other companies. The application process was easy and hassle free. I never had any issues with their services. I use to pay my EMI on time . Customer support is good here .
      Was this review helpful? 0
      , thiruvananthapuram
      Reviewed on Mar 23, 2019
    • SBI Car Loan
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I took car loan with State bank of India,The loan amount was sufficient,like based on my requirement they gave loan,and i have purchased Renault car , the rate of interest they have charged me was nominal,it is floating in nature,like based on the market value it use to change,they have not charged any processing fee, still this loan is running.
      Was this review helpful? 0
      , kolkata
      Reviewed on Mar 23, 2019
    • Kotak Car Loan
      "Good service"
      0.5 4.0/5 "Great!"
      The rate of interest was high with KOTAK MAHINDRA BANK , and there was processing fee for my car loan and it is nominal .The documentation procedure went smooth.I have chosen car loan through KOTAK MAHINDRA BANK . The customer service and response was better.
      Was this review helpful? 0
      , chennai
      Reviewed on Mar 23, 2019
    • HDFC Bank Car Loan
      "Good service"
      0.5 4.0/5 "Great!"
      The loan amount was satisfactory, I pay an EMI on time. The tenure period is for good . Overall it was a very good loan experience e with the HDFC .It was a super fast loan experience. I took a car Loan from the HDFC BANK . The whole loan process was easy and super fast.
      Was this review helpful? 0
      , mumbai
      Reviewed on Mar 23, 2019
    • ICICI Bank Car Loan
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have been holding car loan with ICICI bank ,Their service was prompt,and the loan amount which they have given me was sufficient based on the vehicle they have given me loan, and the rate of interest they have charged me was nominal,and even they have charged me processing fee that too was nominal,and still this loan is running,so far i have not faced any issue.
      Was this review helpful? 0
      , mumbai
      Reviewed on Mar 23, 2019
    • review Car Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      My experience was good I have taken four wheeler loan from TVS credit my loan amount is 3Lack and 3 years tenure and rate of interested is 8.65% only 3 rest emi I have then finished this loan and their response is good I am satisfied with TVS credit limit.
      Was this review helpful? 0
      , coimbatore
      Reviewed on Mar 23, 2019
    • SBI Car Loan
      "Good Experience"
      0.5 4.0/5 "Great!"
      I just submitted my papers for the SBI card loan through the consultancy, they do have one point of contact. But interest is really reasonable, the loan process was very hassle fee and the amazing part was zero processing fee on my loan disbursement.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Mar 22, 2019
    • Kotak Car Loan
      "Process should be simple"
      0.5 3.0/5 "Satisfactory"
      I had car loan from Kotak Mahindra very long back, the process was lengthy and it has hassle documentation process. I was surprised regarding the way of loan, the interest and charges are good, however on road price of the card was approved on time.
      Was this review helpful? 0
      , bangalore
      Reviewed on Mar 22, 2019
    • ICICI Bank Car Loan
      "Very Good Service"
      0.5 4.5/5 "Excellent!"
      It was pretty good experience i had in getting my Car loan from them where the process had been quite good and the loan amount was sufficient as well. The interest rate with them has been nominal and the interest rate with them has been pretty good as well.
      Was this review helpful? 0
      , bangalore
      Reviewed on Mar 22, 2019
    • ICICI Bank Car Loan
      "Excellent service"
      0.5 4.0/5 "Great!"
      I have taken Car Loan through ICICI Bank since got the information directly through Maruti showroom they have recommended ICCI Bank Car Loan . The car model is Maruti eeco .I have got the loan amount on time.The agent clearly explained the process .The rate if interest was high and also processing is high too.Not yet faced any issues on submitting the documents as well .The Overall Service is good as well.
      Was this review helpful? 1
      , new delhi
      Reviewed on Mar 22, 2019
    • SBI Car Loan
      "Need more customer support for good relationship"
      0.5 2.0/5 "Expected more"
      I am not at all happy with the SBi customer service . SBI never respect the customers . From the beginning itself , I am not okay with the process and Bank . My showroom has delivered the car very instantly after the sanction of loan . I am happy with the interest rate .
      Was this review helpful? 0
      , mysore
      Reviewed on Mar 22, 2019
    • review Car Loan
      "Need to improvre services"
      0.5 1.0/5 "Really Bad"
      My car loan has been taken with SRIRAM FINANCE , i am giving 1 rating to this financial institution because o their services which is not so good . The tenure period is 4 year . They charge very high rate of interest with this bank . For everything thing i have to visit the office .
      Was this review helpful? 1
      , mumbai
      Reviewed on Mar 20, 2019
    • IndusInd Bank Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      I had taken this loan almost seven years back and the process in getting this loan was pretty much easy. The loan amount has been good and the interest rate with them has been nominal as well. There has not been any additional charges made by them and there was a help from their customer support team as well.
      Was this review helpful? 1
      , bangalore
      Reviewed on Mar 20, 2019
    • SBI Car Loan
      "Good Experience"
      0.5 5.0/5 "Blown Away!"
      I had a car loan it was closed now with State Bank of India, I got the loan with the lower interest. The service was really nice, infact the rate of interest is lesser. From the bank I got the NOC letter after closing my car loan, overall it was good.
      Was this review helpful? 1
      , bangalore
      Reviewed on Mar 20, 2019
    • Oriental Bank of Commerce Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      I had taken this loan a while back and the process in getting this loan was quite easy. They had offered me with a lesser interest rate and the charges which they had made has been pretty less as well. Overall their customer support has also been helpful at times.
      Was this review helpful? 0
      , chandigarh
      Reviewed on Mar 20, 2019
    • Capital First Car Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      I got my car loan from Capital First and its been 3 months. I have purchased i20 new car and they have provided me 85% funding. The interest rate is okay and the charges has been informed, after getting confirmation from me then loan amount was credited to account. The tenure is 36months.
      Was this review helpful? 0
      , mumbai
      Reviewed on Mar 19, 2019
    • Reliance Commercial Finance Car Loan
      "Average "
      0.5 2.5/5 "Just OK"
      I have taken a car loan in Reliance Finance and it was suggested by the dealer. I have purchased a seconded car and the loan amount is 4.5L which was sufficient. The interest rate is high compared to others also processing fee is applicable. The customer service is not good and they need to improve on.
      Was this review helpful? 1
      , pune
      Reviewed on Mar 19, 2019
    • ICICI Bank Car Loan
      "Average service"
      0.5 3.0/5 "Satisfactory"
      I had been taken my car loan with ICICI bank previously, The loan amount which they have charged me was nominal,and th rate of interest they have charged me was nominal,they have charged according to the market price,and they have charged me processing fee or not i have no idea,like i took loan for 4,80,000,i need to pay extra 20,000 as charges,while closing loan they took to high charges,now 3 years happened i have closed this loan.
      Was this review helpful? 0
      , mumbai
      Reviewed on Mar 18, 2019
    • ICICI Bank Car Loan
      "Average"
      0.5 2.5/5 "Just OK"
      I applied directly for Car Loan with ICICI Bank. I have applied for the Loan amount of more than 1lakhs six thousand for the tenure of 3 years ,rate of interest was high ,processing fee was high ,agent clearly explained the process ,rate of interest was less when the agent told and Tata Capital agent gave high rate of interest. While submitting documents it took so long .
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Mar 18, 2019
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