Car is considered to be an item of great importance in the Indian economy has also gained in utility with perpetual succession as the economy has grown and opened up to become a smoothly operating machine with all the necessary ancillaries in place. However with limited potential to earn and the glaring income differences that are present in our economy there is a high chance that a significant amount of money can be saved and utilized for consumption purposes in addition to the basic consumption items that are required to be purchased for meeting the subsistence needs.
For that purpose banking institutions in the country have come up with attractive car loan offers that can be availed of regularly. However, the ratification process of a car loan is complicated and requires the submission of particular documents that would engage the interested borrowers with the bank which is providing the car loan. Following are some of the important documentation required to be submitted before the car loan is approved-
Application Form- The most primary document that requires to be submitted while availing of a car loan is the application form provided by the commercial private banking institution that is providing the loan facility. The application form contains the details of the borrower including his details like age, permanent address, and occupation. Apart from that, the specifications of the loan like the Car loan interest rate, amount, and the small intricate details associated with the loan are also provided in the application form. Thus the submission of the application form initiates the process of availing of the car loan facility from the bank.
Proforma Invoice- The proforma invoice consists of the details of the billing address of the car and the location where the car would be sent. It is referred to as the bill of sale that is sent to the borrower of the loan in advance mentioning the details about the shipping address, shipping location, and the delivery point of the goods and services ordered. Thus this intimation provided by the borrower to the bank is considered to be an important item that requires submission before the car loan is approved.
Passport Size Photograph of the Borrower- Along with the submission of documents it is also imperative that the borrower submits a pair of passport size photographs that would be highly useful in the submission and loan ratification and verification process.For example- the Indian Bank Car Loan facility offers the borrower the option of submitting a passport photograph, a digital copy of which can be attached along with the application form that is being submitted to the requisite banking authorities.
KYC Documents- In today's banking scenario the documents which have attained the highest quantum of importance are the KYC linked documents. The process of KYC linking can be initiated with the submission of the requisite documents to the Central Government authorities who would enter the Aadhar Card number and the mobile number of the borrower in the application number and link it through digital means.
One would also have to provide fingerprints and digital signature with the same so that the process can be ratified and the documents can be considered for scrutiny. The car loan interest rate can also not be evaluated and the loan processing mechanism thus cannot be initiated until the documents are subjected to KYC linking. Thus it is considered to be a very vital process in the ratification of car loans.
Conclusion: Apart from the aforementioned documents, some other specific documents like office proof, income proof, and bank statements showing the amount of the money that is earned by the account holders monthly are displayed.
