Car Loan


WHAT IS CAR LOAN?

Car loan is taken to purchase a car (new or used) without having to pay the complete payment upfront. Car is hypothecated in the name of the lender/bank.

Features: Some really amazing features of car loan

  • Flexible terms of contract and maximum loan tenure of upto 7 years
  • Very competitive and attractive rates of interests
  • Tax benefit on the payment of EMI’s if the vehicle is to be used for business purposes
  • Everyone with a Permanent Income can apply for a car loan
  • Some banks offer up to 100% of car finance on ex showroom price and generally up to 85% of car finance on ex-showroom price is available
  • Very low processing fees and prepayment charges

Eligibility criterion:

Your eligibility for Car Loan depends on the following factors

  • Income
  • Age
  • Qualification
  • Period of employment
  • Previous running EMI’s

Document Checklist:

 

 

Entity

 

Salaried

Sole Proprietorship

Partnership

Private Limited Company

 

Individual

Proprietor

Partner

Director

Individual documents

Age & ID proof (any of the below): of Proprietor/Partner/Director

  • PAN Card
  • Passport
  • Drivers’ License
  • Aadhar Card

Yes

Yes

Yes

Yes

Residence Address Proof (any of the below): of Proprietor/Partner/Director

  • Passport
  • LIC Premium (not over two months old)
  • Utility Bill (not over two months old)
  • Arms License (not over two months old)
  • Mobile Bill (not over two months old)

Yes

Yes

Yes

Yes

Photograph of Proprietor/Partner/Director
with Signature

Yes

Yes

Yes

Yes

Sanction letter and schedules/Statement of loans in the name of individuals/partners/directors

Yes

Yes

Yes

Yes

Residence/Office Ownership (any of the below):

  • Electricity Bill
  • Sales Deed Copy

N.A.

Yes

Yes

Yes

IT Return/Form16 of last 3 Years

Yes

Yes

Yes

Yes

Photograph with Signature

Yes

Yes

Yes

Yes

Last 6 months bank statement of all operative accounts

Yes

Yes

Yes

Yes

In the case of transfer of a loan: Last 12 months of  loans statement  along with the Sanction Letter of your previous bank

Yes

Yes

Yes

Yes

Company/Firm related documents

Business continuity proof – 3 years income tax return &income  statement

N.A.

Yes

Yes

Yes

Last3year audit report and audited financials

N.A.

Yes

Yes

Yes

Business incorporation date proof – PAN Card

N.A.

N.A.

Yes

Yes

Office Address proof (any one of the flowing):

  • Utility bill (Electricity)
  • VAT/Sales Tax/Service Tax Registration certificate

N.A.

Yes

Yes

Yes

Partnership Deed

N.A.

N.A.

Yes

N.A.

Certificate of Registration

N.A.

N.A.

Yes

Yes

List of current partners with shareholding on firm letterhead

N.A.

N.A.

Yes

Yes

MOA(Memorandum of Association ) and AOA (Articles of Association)

N.A.

N.A.

N.A.

Yes

Latest share holding pattern on company letterhead

N.A.

N.A.

N.A.

Yes

List of current Directors on company letterhead

N.A.

N.A.

N.A.

Yes

Certificate of Incorporation

N.A.

N.A.

N.A.

Yes