A lot of people believe that taking a car loan or taking a loan on credit can be a tedious process, you might not be totally wrong to believe that. However, as time has advanced, lenders and banks have made the process much easier for people. A lot of people believe that taking a car loan or taking a loan on credit can be a tedious process, you might not be totally wrong to believe that. However, as time has advanced, lenders and banks have made the process much easier for people.

When looking to get a car loan, here’s a list of documents that you should keep handy:

• A valid photo ID: Since you’re taking a loan on credit, it is important to prove your identity to the lender or the bank concerned, which is why you need a valid ID proof. These usually include a PAN card, Aadhar card, Passport, a driver’s license, etc.

• Proof of residency: Another very important piece of information, should keep your rent agreement, house deed, passport, Aadhar card or any other residence proof ready when planning to apply for a loan on credit.

• Lender/ Bank form application and passport size photographs: You should have the bank application form filled duly with all the information. Other than that, usually one needs passport size photographs- at least 3- to complete the form formalities.

• Bank information: To take a loan on credit, you need to prove it to your lender that you’re capable of repaying the loan. Owing to that, you need to produce your bank statements for 6 months.

  • For salaried individuals: Other than that, if you are a salaried individual, you should also have 3-months salary slips and Form 16 or tax return proof for at least 2 years.
  • For self-employed people: A complete list of the balance sheet, profit and loss account and tax computation of the last 2-years, at least. Also, one needs to produce their registration certificate, a service tax registration or any other document that proves the validity of your business.

• Sign verification proof: Any valid government ID that you produce can work as a proof of the sign that you use for your official transactions. This is an important proof needed to get a loan on credit.

If you have these documents ready in time, the approval and disbursal of your car loan should not take very long. The entire process usually lasts for 3-4 days after which the loan amount is credited in your account.