Tired of walking around in search of a matatu or hiking a lift? It is time to buy your own car. The process of buying a car is exciting, tedious but also very expensive. You may have to save up for a long time before you are able to afford your dream car or you can choose to apply for a car loan. If you opt for a car loan, there are a few documents that you will need to submit before you can secure a loan.
We have highlighted a brief car loan checklist to help you.
The most essential document when looking for financial assistance is your original national identity card. This card will enable the financial institution to identify you and also process you into their system. They can also use the identification number to find out if you may have committed fraud somewhere else.
Proof of income
Before you are considered eligible for a car loan, you will need to provide proof of source of income. This is another important document to establish your capacity to pay back the loan. If you are employed, you will need to submit your most recent payslips from your current employer. On the other hand, if you are self-employed, you will have to provide proof of income such as income tax returns receipts.
Proof of age
Car loans just like any other type of loan require one to be over the age of 18 to qualify. Every financial institution has an age bracket to which they offer a car loan. For most, it’s between 21- 60. Have your proof of age at hand when you are ready to apply for a loan. This could be any document with your date of birth, be it a birth certificate or even passport.
Before you are given a loan your asset financing partner will ask you for your correct current and permanent address. Having a valid address is important as it makes you more credible and makes it easier for the financial institution to collect what you listed as collateral in case you default. Your residential proof document can be any document with your current permanent address.
Before you are cleared to receive a car loan, you will have to provide an up to date credit history report. The asset financing partner may need to know if you have been blacklisted for defaulting loans in the past and ascertain that your credit ratings are good. If you are a chronic defaulter, chances are that you will not be given a loan.
Car value quotation
The financing institution will need an accurate quotation for the cost of the car from the dealership. The price quotation will determine the amount of money you will be loaned. This quotation should be submitted along with the loan application form to the bank.
You will have to provide the bank with your most recent, clear, coloured passport size photographs that will be attached to your loan application documents. The photographs will help them be able to identify you.
Documentation is an essential part of the loan application and approval process. Therefore before you apply for a car loan, ensure you have all the relevant documents to facilitate timely and hassle-free approval. Not to worry, you will be guided on the entire loan application process whenever you walk into any financial application. With all your documents ready, you are a step away from driving your brand new car.