Car Loan

Car Refinance Loan is a type of secured loan. You can avail funds by keeping your car as collateral to the bank or NBFC. This type of secured loan is getting popular day by day. Banks and NBFCs are also willing to give this loan. By opting for loan against car, one can get smaller loan amounts for shorter tenure. Until your car is kept as collateral to the bank, you can still use your car. Banks give loan on the basis of car's current condition, borrower's financial history, credit score, ability to repay the loan and other debt obligations. The amount of loan is decided on the current on road value of the car. Banks give loan amount up to 60% to 70% of the car value for the tenure of maximum 60 months i.e. 5 years.

What are the Documents Required to avail a Car Refinance Loan?

The list of required documents differs from bank to bank. But we have given a generic list of required documents below:

Neatly signed and filled car refinance loan application form.
Passport-size photographs.
Statements of investments (if any).
Bank statements and salary slips of last 6 months from application date.
Identity and signature proof - Passport, Pan card, Driving License, Voter ID card, Aadhar card, employee identity card in case of government employees.
Address Proof - Bank statement, Rent Agreement, Voter ID card, Ration card, Passport, Driving License, telephone/electricity/water/credit card bill or Property tax.
Age Proof - Voter ID card, Secondary school leaving certificate (class 10), birth certificate, Passport, Aadhar Card, pension payment order or receipt of LIC policy.
Valuation/cost estimation report from evaluator approved by the NBFC or Bank.
Car ownership papers.
Business proof (registration of business).
Copy of ITR/Assessment Orders of 3 years.
Copy of challans proving that Advance Income Tax has been paid.