What documents are mandatory for a used car loan application apart from KYC?

While submitting KYC documents is a standard practice when applying for a car loan, it is not the only documentation required. The lender will require paperwork to verify your financial situation and confirm legal status of the car as well as ensuring the lender is compliant with all regulations.

Normally these would be the following requirements that you provide in addition to your KYC (Aadhaar, PAN, Passport etc):

• Proof of income: recent monthly salary statements, recent (prior month) bank statements, or tax returns.
• Proof of Address: electricity bill, rental agreement etc. or bank statement with your address.
• Registration Certificate (RC): a RC will normally be required for all used car loans to prove ownership of the car.
• Insurance proof: evidence of car insurance coverage.
• Sale Agreement/invoice: provided by either the seller or the dealer. Proves the sale or transaction, which is required in the loan processing phase.
• Passport size photograph: most lenders will refer these as a requirement for identification purposes.
• Employment verification: For salaried bank loans - proof of employment and may provide a copy of the appointment letter or work ID; self employed bank loans proof of a company registration/business name (GST certificate).

There may be additional verification of this documentation, depending on the applicant's employment situation, or lender.