Documents Required for Swift Approval of Your Loan Against Vehicle

Documents Required for Swift Approval of Your Loan Against Vehicle

When you apply for a car loan, the financial institutions require certain documents. The primary objective is to determine your financial stability and credibility. When you submit the documents, the lenders do a check on your credit score and financial position prior to approving your loan application.

If you have a good credit score and history, the financial institutions will approve the loan and disburse it quickly. In case your credit score is less, the lenders may require additional documentation such as credit card statements and mortgage-related information.

While the loan against vehicle interest rates are competitive, applicants with a lower credit score may have to pay a higher rate. In case of a very poor score, the lenders may reject your application too. Therefore, it is necessary to submit all the documents required to avail of a car loan.

Here is the list of documents that are required when you apply for a loan against vehicle:

If you are salaried

  • Identity proof such as Aadhar card, passport, Permanent Account Number (PAN) card, voter card, or driving license
  • Address proof can be an official document that has your accurate residential address such as ration card or utility bills
  • Age proof, which includes your mark sheet, school leaving certificate, or birth certificate
  • Income proof by submitting salary slips of at least three previous months
  • Three or six months bank statement (generally the one where your salary is credited)
  • Duly completed signature verification form
  • Proforma invoice showing the total cost of the car as quoted by the dealer, which is used to determine the loan against car amount

If you are a self-employed professional

  • Any identity proof as listed above
  • Residential address proof as aforementioned
  • Any official document showing your age
  • Three or six months bank statement to determine your financial stability
  • Business ownership proof in the form of an office address, maintenance bill, or utility bill along with the business registration license copy
  • Income proof through the income tax returns (ITRs) for the last two years along with the audited balance sheet and income statement, if applicable
  • Duly completed signature verification form
  • The proforma invoice showing the total cost of the vehicle to determine the loan amount

Today, being a proud owner of your dream car is no longer a distant dream due to the easy availability of vehicle loans. The majority of the banks and Non-Banking Financial Companies (NBFCs) offer different types of products based on an individual’s loan against vehicle eligibility.

Unlike the past, the entire procedure to apply and avail of a vehicle loan is simple, quick, and hassle-free. You may also apply for a loan online and receive instant approval. If you submit the required loan against vehicle documents and complete the necessary approval, several lenders may finance up to 100% of the value of the car. This means you do not even require the money to pay the down payment.

Lenders have reduced the paperwork required at the time of applying for a car loan. Nonetheless, it is important to submit the required documents to ensure that your application is approved without any delay. Although there may be some variations in the document requirements, most lenders require the aforementioned documents when applying for a vehicle loan.

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