Auto finance comes into play when a person requires some financial help at the time of buying any kind of vehicle. Banks and other financial institutions give financial help to the people who want to buy a vehicle, but don’t have enough funds to make an outright purchase.
Banks or financial institutions give auto finance and keep the hypothecation of the vehicle purchased by using their funds. When the buyer pays the loan amount along with the interest in full, they then transfer full ownership to the buyer.
The aspiring vehicle buyer has to provide some documents at the time of purchasing the vehicle. Those documents are mandatory to obtain auto finance. Though the documents required vary from financial institution to institution, you will find that they are more or less same.
- The applicant should give passport size photo of him/herself. The number of photos required will vary from institution to institution, but minimum one recent passport size photo has to be submitted.
- The applicant has to give the photo copy of his or her proof of identity. A valid driving license, PAN card, passport, bank account, and other documents can be used as proof of identity.
- The applicant has to give a photo copy of his or her proof of address. A telephone bill, credit card statement or electricity bill can be used as proof.
- The applicant has to give a photo copy of his or her income. A salary slip or a full income tax return statement can be used for this purpose.
- Along with the above documents, the
quotation of the vehicle to be purchased has to be given. The quotation should
be from an authorized dealer.
After scrutinizing all the above documents, if the financer finds the applicant to be credit worthy, they then give the funds to the applicant to purchase their vehicle.