Once you have zeroed in on the car that you want to purchase, the next step is to apply for a car loan. There is a lot less paperwork involved than a home loan since the bank does not have to verify any asset as in the case of home loans. It takes about three to six days for you to get a car loan -a lot less time than a home loan.
Here is a step-by-step break-up of the car loan application process:
Step 1: Enquiry with a lender:
The first step is to get in touch with a lender. You need to get in touch with as many lenders as possible and get them to make loan offers to you. Then negotiate with them to get the best interest rate. Check if there are any special offers.
After you have got all the banks to make their offers to you, select your lender based on the information you have in front of you.
Step 2: Documents Collection
After you finalize your lender, the lender’s direct selling agent will visit you and collect documents supporting proof of income, residence proof, and identity. You may be required to produce copies of IT returns, salary slips, bank statements, passport, driving license, and other relevant documents. These requirements vary from lender to lender.
Step 3: Field Investigation Agency Representative Visit
After submitting the documents, a field investigator will visit your home to double check the facts provided in the documents, such as your place of residence, tenure at work place, and so on. It is essential that you are present during this visit to clarify any query that the investigator might have. Otherwise, the investigator might not get all the facts clearly and could report that the facts you provided do not actually add up – thus forcing the lender to reject your loan application.
Step 4: Loan approved
Once the lender is satisfied with the veracity of your documents, the loan is approved. The lender then disburses the amount through cheques or demand drafts (DD).