What are the documents required for a car loan

Before driving your dream car, you need to get a car loan, and the right documents are important. Ready? Let’s go through the essentials!

1. Identity Proof

Commonly Accepted Identity Proofs:

• Aadhaar Card: Widely accepted and easy to verify

• PAN Card: Important for tax and identity purposes

• Passport: Valid for both identity and address proof

• Driving License: A practical option for a car loan

• Voter ID: Another reliable proof of identity

2. Address Proof

Commonly Accepted Address Proofs:

• Aadhaar Card: Double-check that your address is current

• Voter ID: Reflects your local residency

• Driving License: Also serves as both identity and address proof

• Ration Card: Still a valid option

• Electricity Bill: Should not be older than three months

3. Age Proof

Age plays an important role in your car loan eligibility. Most lenders have an age limit of 21 to 65 years for loan applicants.

Documents for Age Proof:

• Birth Certificate: A classic and straightforward proof

• Educational Certificate: Your 10th or 12th-grade mark sheet often mentions your date of birth

• Aadhaar Card: Serves as a multipurpose document

• Passport: Another valid and reliable option

4. Income Proof

For Salaried Individuals:

• Salary Slips: The last 3-6 months’ salary slips

• Income Tax Returns (ITR): At least the last 2 years

• Form 16: Provided by your employer for tax purposes

For Self-Employed Individuals:

• Income Tax Returns (ITR): Minimum of 2-3 years’ returns

• Balance Sheets: A summary of your financial situation

• Profit and Loss Statement: Reflects your business’s performance

• Business License or Registration: Proof that your business is legitimate

5. Bank Statements

Lenders usually ask for bank statements from the last 3-6 months to check your income and spending habits. This helps them understand your financial situation.

Why Are Bank Statements Important?

• They show if you have a stable and sufficient income.

• They reveal your spending habits and financial discipline.

• They can indicate if you have any ongoing EMIs or significant expenses.

6. Additional Documents for Self-Employed Individuals

If you're self-employed, you'll need to provide extra documents. Lenders want to make sure your business is legitimate and makes a steady income.

Additional Documents Needed:

• Business Ownership Proof: Business registration certificate, GST registration, or shop license

• Office Address Proof: Utility bills, rental agreements, or ownership documents

• Balance Sheets and Profit & Loss Statements: To prove your business’s financial stability

7. Passport-Sized Photographs

Why They’re Necessary:

• Used for attaching to your application form

• Required for identity verification

Keep 2-3 recent photographs handy. It’s always better to have a few extra!

Summary

Conclusion

Applying for a car loan is easier if your documents are organized and up to date. Make sure to double-check everything before submitting to avoid any problems.

Takeaways:

• Prepare your documents in advance for a hassle-free experience.

• Keep an eye on your credit score for better loan offers.

• Always read the loan terms carefully before signing.

How can EazyBankLoan help you in taking a loan?

We understand that getting a loan can be very stressful with confusing documents, unclear communication, and various other challenges. That is why we take care of your loan application process, saving you time and hassle by handling the paperwork and communicating with the loan providers.

Check the details at EazyBankLoan

Need help? Reach out at support@eazybankloan.com

Frequently Asked Questions (FAQs)

1. What’s the minimum income requirement for a car loan?

   • It varies, but most lenders look for a monthly income of at least ₹25,000.

2. Can I apply for a car loan jointly with someone?

   • Yes, applying with a co-applicant, such as a spouse, can increase your loan eligibility.