Keep These Documents Handy While Applying for A Car Loan

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Many of you will surely agree on the fact that buying a stylish car has become quite an easy job nowadays. Yes, these days with the availability of many private and government banks, it is absolutely easy to avail a car loan as they are always there to help you out. But, before applying for a loan in order to purchase your favorite car, it is very important for you to meet the eligibility criteria. However, apart from eligibility, having appropriate documents can help you get approved for a loan without any hassle. Moreover, banks or lenders generally look for such proof which shows that you are not in a position of risk, and will be able to repay your car loan amount in future so as to become a proud owner of a car.

So, read this article below to know the list of important documents required, when it comes to applying for a car loan:

Age Proof

Age proof plays a pivotal role, if you are applying for a car loan. It is the first and foremost criteria that a bank or lender look in a candidate, applying for a loan. Different banks require different age limit to apply for a car loan, but for many it usually ranges between 21-60 years. If you are of that age limit, only banks will consider you to give a loan. Plethora of private and public banks give importance to this age criteria, hence decide to give away the desired car loan. So, if you meet that age limit criteria, you need to keep in hand you age proof document so as to avail a car loan easily.

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Income Proof

To apply for a car loan, all you need to do is just submit the last three month’s salary slips along with a total of what you have been paid year-to-date. However, if the stubs that you are submitting are handwritten, you need to submit a total number of four consecutive statements along with the cancelled checks from none other than your employer. More to the point, if you are a self-employed candidate, the banks or lenders usually ask for your tax returns in order to determine your gross income. They need the copies of past two years of your tax returns. Also, you need to make sure that whether your lender requires any signed paperwork by an auditor or not.

More to the point, if you are the one whose source of income is from the rental, the banks may ask from you to submit the proof of social security, legal settlements, alimony or child support and other related documents. Furthermore, your lender may or may not require these documents, but if you carry the proofs of other source of income that you have, there might be a possibility that banks or lenders may provide you with a big loan amount, depending upon your source of income.

Residence Proof

Almost every bank or lending institute ask you to submit the copies of your address proof so as to get a car loan. It is important for them to know or check whether the applicant owns his own home or lives in a rented property. In order to complete the further proceedings, all they require is recent copies of your telephone bills, property tax receipt, and last, but not the least voter ID card as address proof. You need to keep these documents ready, before applying for a car loan.

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Identity Proof

It is important to submit an identity proof in any bank to avail the car loan. It is essential thing for a bank to know, whether the applicant owns the proper citizenship of the country or not. And, to evaluate this thing, asking for an identity proof is surely the best way. However, for salaried individuals, banks usually ask for identity card issued by their firm along with am NOC (Non Objection Certificate).

Photographs

Submitting your recent photographs are must in almost every bank. The picture should be the recent one so that you can easily be identified by the bank. You need to keep your photograph ready so as to get a car loan. However, one thing that needs to be mentioned here is the fact that the photograph should be clear, and more focus should be on your face.

Credit History

Before applying for a car loan, the banks or lenders are interested to know any other loans or financial obligations running on you. If so, how you have handled your debt payments in the past. Furthermore, this thing required you to submit the lease or mortgage agreements, your credit card statements, and finally the record of alimony.

Bank Statements

Your bank statements are also important while applying for a car loan through any bank. You need to have last 6 months bank statements ready with you so as to avail a loan. It is important for a bank to check your monthly statements as through this way a bank can analyze your monthly activity and can know your credibility. Moreover, in some cases, many banks ask for more than 6 months bank statement from an applicant. So, keep this document ready with you.

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Vehicle Documents

Different banks require different vehicle documents, if you are planning to buy a new car. However, some of the common documents required by almost all the banks are:

Booking receipt of the vehicle which majorly includes the price of the vehicle, identification number of the vehicle, year, model number, etc. So, be ready with these above documents to get a car loan.

Insurance Proof

If you have a car insurance, it is important for you to submit the copy of insurance in the bank as well. While submitting this document, you must prove in the bank that your insurance company is aware about this newly purchased car of yours. Thus, prepare the copy of this important document in advance while availing a flexible and unmatched car loan deal from your favorite bank.