Can I take a loan for a car under company ownership?

You can take a loan for a car that’s owned by a company, but lenders treat it a little differently from a normal personal purchase. It is important to understand this nuance as many people try to buy an old office car or a vehicle used in a small business and expect the paperwork to work the same way. However, there are a few things that you need to keep in your mind:

• Start by checking who legally owns the car. The RC should clearly show the company’s name. Some buyers skip this and only notice it during the branch visit, which slows things down.
• Lenders will ask for company documents. They usually need a sale letter from the firm, a board resolution or simple authorisation, and ID proof of the person signing. In most cases, they also check if the company has any pending loans against the car.
• Delays happen if the paperwork isn’t clear. If the seller can’t provide clean documents or if the company’s name doesn’t match across papers, the loan process may be paused. At this stage, you may receive calls asking for updated copies. Save a screenshot of whatever you receive; it helps later.
• If the company is shutting down, it gets complicated. Lenders want proof that the sale is legitimate and not part of a dispute, so expect extra verification.

Once the documents line up, the loan usually moves in a straight line, and the process feels far simpler than it looks at first.