A four-wheeler was considered a luxury item in the olden days. It was more of unlocking a milestone as you would have to shell out lump sum money without any financial aid such as loans. Today, possessing a car has become a necessity. With different types of models being introduced by automobile companies almost every day, the costs of these four-wheelers have increased and almost inaccessible for lower as well as the middle-class segment.
You need a car for your daily work commute, duties or leisure. Therefore, considering the rise in the price and new cars, banks and other financial institutes have started offering loans for the same. You can either opt for a personal mortgage or a car loan.
What are car loans?
Known as four-wheeler loan, is a secured loan where you have to keep your vehicle as collateral. Based on the type of vehicle, the lenders offer you the loan amount. In this case, the interest rates are less as you provide security to the lenders. If you do not repay the loan on time, the lender will sell off your car to cover the loan amount.
To get the loan, you have to fulfil certain conditions. The car loan requirements are:
1) You must be an Indian national to apply for the loan
2) You should be a salaried, self-employed or business owner to avail of a car loan
3) The minimum age to apply for the loan is 21 years. The maximum limit is 65
4) Salaried employees should be in employed in their current job for at least a year. On the other hand, self-employed professionals should be operating their existing business for minimum 2 years
What car loan documents should the salaried and self-employed people produce to the lenders?
Lenders seek for various documents from the applicants mainly to gauge their credibility and repayment capacity. Most of the lenders prefer to provide loans to individuals who are creditworthy. For this purpose, lenders check the applicants' credit history and financial profile. Some of the components could vary from borrower to borrower. The car loan documents are slightly different for salaried and self-employed professionals. They are as follows:
1) Salaried employees:
• ID proof such as Aadhaar, PAN card, driving license, passport, voter’s ID, etc.
• Address proof like Aadhaar, PAN card, passport, utility bills, life insurance policies, ration card, etc.
• Age proof comprises of birth certificate, school certificate and likes
• Income proof should include your last 3 months payment slips, past 6 months bank statement
• Signature proof
• You will also have to show the proforma invoice that contains the price quoted by at the time of purchase of the car. The car loan amount will be based on the cost of the vehicle
2) Self-employed professionals:
• ID proofs such as Aadhaar card, PAN card, driving license, passport, voter’s ID, etc.
• Address proofs like Aadhaar, PAN card, passport, utility bills, property papers, ration card, etc.
• Age proofs include birth certificate, school certificate, Aadhaar, etc.
• Your bank statement should be of past 6 months
• You have to show your previous 2 years income tax return. Besides, you also have to furnish the documents such as audited balance sheet, profit and loss statement, etc.
• Office proofs like maintenance bill, utility bills and business registration copy
• You will also have to show the proforma invoice based on which the loan amount would be provided
These are some of the car loan documents required to get your loan quickly. If each of these is in place, then car loans are the ideal solution. If you are unsure about the documents, you can always call the lender's customer care number for reconfirmation
You need a car for your daily work commute, duties or leisure. Therefore, considering the rise in the price and new cars, banks and other financial institutes have started offering loans for the same. You can either opt for a personal mortgage or a car loan.
What are car loans?
Known as four-wheeler loan, is a secured loan where you have to keep your vehicle as collateral. Based on the type of vehicle, the lenders offer you the loan amount. In this case, the interest rates are less as you provide security to the lenders. If you do not repay the loan on time, the lender will sell off your car to cover the loan amount.
To get the loan, you have to fulfil certain conditions. The car loan requirements are:
1) You must be an Indian national to apply for the loan
2) You should be a salaried, self-employed or business owner to avail of a car loan
3) The minimum age to apply for the loan is 21 years. The maximum limit is 65
4) Salaried employees should be in employed in their current job for at least a year. On the other hand, self-employed professionals should be operating their existing business for minimum 2 years
What car loan documents should the salaried and self-employed people produce to the lenders?
Lenders seek for various documents from the applicants mainly to gauge their credibility and repayment capacity. Most of the lenders prefer to provide loans to individuals who are creditworthy. For this purpose, lenders check the applicants' credit history and financial profile. Some of the components could vary from borrower to borrower. The car loan documents are slightly different for salaried and self-employed professionals. They are as follows:
1) Salaried employees:
• ID proof such as Aadhaar, PAN card, driving license, passport, voter’s ID, etc.
• Address proof like Aadhaar, PAN card, passport, utility bills, life insurance policies, ration card, etc.
• Age proof comprises of birth certificate, school certificate and likes
• Income proof should include your last 3 months payment slips, past 6 months bank statement
• Signature proof
• You will also have to show the proforma invoice that contains the price quoted by at the time of purchase of the car. The car loan amount will be based on the cost of the vehicle
2) Self-employed professionals:
• ID proofs such as Aadhaar card, PAN card, driving license, passport, voter’s ID, etc.
• Address proofs like Aadhaar, PAN card, passport, utility bills, property papers, ration card, etc.
• Age proofs include birth certificate, school certificate, Aadhaar, etc.
• Your bank statement should be of past 6 months
• You have to show your previous 2 years income tax return. Besides, you also have to furnish the documents such as audited balance sheet, profit and loss statement, etc.
• Office proofs like maintenance bill, utility bills and business registration copy
• You will also have to show the proforma invoice based on which the loan amount would be provided
These are some of the car loan documents required to get your loan quickly. If each of these is in place, then car loans are the ideal solution. If you are unsure about the documents, you can always call the lender's customer care number for reconfirmation
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