Auto Loan Checklist
Your dream car is just a loan away; however taking an auto loan is no child’s play! In fact, taking an auto loan is the biggest challenge in the whole process of car buying. So let us apprise you of the basic documents and all necessary things required to get your auto loan sanctioned. We have tried to cover all documents that go with you loan application and are marked as important by all banks (both private and public) before sanctioning your auto loan –
- Photo identity proof – You are required to submit any one of the basic photo identity proof like Passport, Pan Card, Voter ID, Driving Licence or Aadhar card.
- Residence Address Proof: You can submit either of Passport or ration card or a copy of electricity bill or water bill as your residence proof.
- Residence Ownership Proof: Banks demand for Property Documents, Maintenance Bill or Electricity Bill as your residence proof.
- Income Proof: No auto loan gets sanctioned unless you submit your latest 3 months salary slip and Form 16. It is this salary slip that determines your loan amount eligibility.
- Specific documents for salaried people – Salaried people are required to submit Job continuity proof by submitting any one document like Current Employment Certificate or Current Job Appointment letter (if it is more than 2 years) or even Experience Certificate would do.
- Specific documents required for entrepreneurs – If the car is bought by a company and auto loan is taken by an entrepreneurship or company, some specific documents like Office Address Proof (Property Documents or utility bills), Office Ownership Proof (Property Documents or utility bills), Business Existence Proof (3 years old Saral Copy, Shop Establishment Act or any Tax Registration Copy) along with Company Registration license needs to be submitted.
Other than these, Bank Statement for latest 6 months where salary gets credited or which is your main business account along with down payment dealer receipt, Car Quotation and your passport size photographs need to given to the bank.
When professionals take an auto loan, they need to furnish their latest Income 2 years Income Tax Returns including profit & loss statement, Balance Sheet & Auditors’ copy as well.
And a final note – make sure you keep a Xerox copy of all these documents with yourself as well. Loan sanctioning is a matter of minutes once your documents are ready. You will find yourself on the driver’s seat of your dream car in no time. As everyone says, well planned is half done… Strategic documenting is the first step to happy driving!