Documents required for Car Loan

If you are a self-employed individual, your income doesn't come in the form of regular paychecks. Whether you run your own business or work as an independent contractor, your income can fluctuate from month to month.

Getting loan approvals from banks may be a bit more challenging for self-employed individuals compared to those with steady jobs.

To improve your chances of securing a car loan, here are the essential car loan documents you will need to provide:

• Utility bills like electricity or maintenance bills for the business location to show evidence of your business
• A copy of your business registration, like a GST certificate or an MSME certificate
• Current Account and Savings Account bank statements for the last three months
• Income tax returns for the past two years, an audited balance sheet, and a profit and loss statement to show proof of income
• Udyam Registration Certificate (URC), For MSME.

If you are a self-employed individual in the field of manufacturing, wholesale, trading, or retailing within the MSME category, you can apply for a car loan with minimal paperwork.

Here is the list of car loan documents that you will need to provide:

• Audited balance sheet, a profit and loss (P&L) account, and your income tax return for the past two years as proof of income
• Bank statements for the last three months
• The Shop & Establishment Act certificate, MSME registration certificate, sales tax or VAT certificate, and the current account bank statement to confirm your business’s existence
• PAN Card and an authority letter signed by all the partners for partnership firms
• In the case of a privately held company, a list of directors and the shareholding pattern. Additional documents for private limited companies can include PAN cards, a board resolution, and a certificate of commencement of business for limited companies
• Udyam Registration Certificate (URC), For MSME.