Document Checklist for Car Loans

Owning a car is part of the Indian middle-class dream. A self-owned vehicle is capable of giving an individual a sense of entitlement. As the citizen of the modern world, a vehicle is an acknowledgement of your own capability to generate funds by the sweat of your brow. However, sometimes your dream vehicle might be just out of reach because of financial concerns. This is the point in time, car loans become an important consideration when the lack of a vehicle eventually becomes an impracticality for your life. Here are the documents you would need to keep in hand when you are planning on availing car loans.

For Salaried Individuals

Individuals who are already earning a salary are well placed to avail car loans as banks are generally not reluctant to give out loans to these individuals, given that they do not have a bad credit history. The formalities and the documents that are required tend to be standard. Here is a list of the necessary documents:

  • Bank statement for the last 6 months.
  • Income Proof
  • Signature Verification Proof
  • Pro-forma invoice of rate list
  • Income Tax for the last 2 years
  • Address Proof
  • Identity Proof
  • 2 passport size photographs

Non-Salaried Individuals

This class of people include businessmen and professional individuals who live on an irregular income. The document checklist for them tends to be much more comprehensive than the requirements posed to salaried individuals. Here is a list

  • Bank statement for the last 6 months
  • Identity proof
  • Address proof
  • Income proof
  • Income Tax returns for the last 2 years
  • Form 16 for the last 2 years
  • Audited balance sheets
  • P&L statement for two years
  • Shop and Establishment Act Certificate

Individuals Engaged In Farming and Diary

People who make a living out of agriculture and allied activities are required to furnish a different set of documents for availing car loans. These are as follows:

  • Bank statement for the last 6 months
  • 2 passport size photographs
  • Identity proof
  • Address proof
  • In case of crop cultivation land holding documents need to be furnished with photographs
  • In the case of allied agricultural activity, documentary proof of the daily runnings of the farm or plantation must be submitted

No matter what income class you hail from, a car is an intimate dream to have. The technicalities of availing car loans are inherent in the documents you have to submit to the bank. We hope this exhaustive list we had provided aids you in your journey to buying yourself a new car.