What KYC documents are needed for a second-hand car loan?

When you are applying for a second-hand vehicle loan, you will have to submit standard KYC (Know Your Customer) documents. These usually include:

• Proof of identity (Aadhaar card, PAN card, passport or voter ID)
• Proof of address (utility bill, Aadhaar, passport or rental agreement)
• Proof of income (salary slips, bank statements, or IT returns when self-employed)
• Latest passport sized photos
• Car documents (registration certificate, insurance papers, and sale agreement)

Some lenders may require additional documents like proof of documents for self-employed customers or a no-objection certificate (NOC) from the previous owner. It is best to keep the entire set of documents, to be sorted and in order to minimise the approval timeline. It is also a good idea to check with the lender for the latest documents checklist, so you will have everything needed for when you apply.

To speed up the process, it is a good idea to have both the original documents and photocopies on hand and accessible as the lenders are likely to ask to see the proof. More lenders are allowing their customers to submit only digital copies or are allowing customers to upload the documents online, which can speed up the approval time.

For understandable reasons, any joint or partnership application will require the KYC and proof of income for all co-applicants. For self-employed applicants, the lender will need to see business registration certificates or GST registration documents.