Is a valuation certificate compulsory for a used car loan application?

While a valuation certificate is not mandatory, it comes up in most used car loan applications because lenders want a clear idea of what the vehicle is actually worth. It’s not always compulsory, but in day-to-day practice, you’ll find that some form of valuation is almost always asked for. It helps them fix the loan amount and check the car’s condition without guesswork.

The usual starting point is a basic vehicle check. Many lenders arrange their own valuation through a partner inspector, so you may just have to share the RC copy and insurance and wait for their update.

If they don’t have an in-house check, they may ask you to get a short valuation report from an authorised centre.

What slows things down is missing papers. An RC mismatch, lapsed insurance, or an unclear service history can make the lender ask for extra documents. A simple screenshot of the insurance renewal or service bill often helps.

Some sellers give a price note or sale slip. It isn’t a valuation report, but lenders still keep it in the file to see the agreed price.

A small check like this keeps the loan process smoother, especially when you’re buying a car from an individual seller.