Once you have figured out the type of car loan you wish to acquire, getting it needn’t necessarily be a time-consuming drawn out process. One way to ensure you get a loan approved quickly is to make sure that you have all the documents authorised and handy so that you won’t spend a lot of time going back and forth providing missing pieces of information. Here is a checklist that you can refer to which will help you get the car loan faster:
Checklist For A Car Loan Applicant
- A completed application form
- A photocopy for identity card (NRIC) or a copy of passport (whatever is applicable)
- A copy of your valid driving licence
- A copy of latest income tax return receipt (J Form)
- Latest salary slips for 3 to 6 months (as requested by the bank)
- For a self-employed applicant, copies of latest bank statements for 3 to 6 months
Checklist For Ownership Transfer Of A Used Car/Vehicle
Listed below are the mandatory documents need to be presented at the time of the loan application for used private and commercial vehicles:
- 2 copies of JPJ form for transfer of a vehicle that has been filled and signed by a new owner
- Original copy of the Vehicle Endorsement Certificate (JPJK2)
- Copy of the registered owner’s identity card
- A copy of the new owner’s identity card
- Identity proof of a representative (if any)
- Letter of ownership claim cancellation by the registered owner
- All documents related to Ownership Transfer Inspection Report by PUSPAKOM
- 2 Business Licenses issued by the local authority (Sabah and Sarawak) (for private vehicle of sole/partnership company)
- A copy of Form D (Business Registration Certificate)
- A copy of Form 9 or Form 13 (for trade vehicles)
- A cancellation letter or original vehicle owner transfer documents provided by LPKP or Tourism Ministry (if relevant) (for trade vehicles)
- Form JPJK1 for the declaration of the type of goods transported (for decontrolled vehicles)
- Any other document as specified by the bank of financing institute (if requested)
How To Ensure That Your Car Loan Is Approved
Once you have collected all the required documents that are mandatory for your car loan application, you need to make sure that your car loan is approved as early as possible and you do not have to go through the tiring waiting period to get your dream car. Thus, consider the following pointers to get through the application process quickly:
- Finalise The Type Of Car You Want: This helps you in approaching the right bank with an apt scheme that suits your requirements. Different interest rates are offered for different types of car loan schemes, thus finalising an appropriate package plays an important part towards financial affordability.
- Consider The Eligibility Criteria: Read about the eligibility guidelines before applying for a particular type of car financing. You need to meet the age, income and credit criteria to obtain a car loan.
- Maintain A Good Credit Score: It is one of the most important factors that can affect the approval process. It is important to have a healthy standing when the bank will tally your credit score for approval. You can improve your credit score by various means. Make sure that you have all your previous loans cleared. If you have taken up a loan recently, do not delay your repayments as it affects your credit score the most. Also, you can continue maintaining the investments like fixed deposits, or insurance plans that you have with the bank etc.
- A Guarantor Or Collateral: Most of the times banks do not ask for a guarantor or collateral for a car loan package. However, if you need to provide a guarantor, make sure that he/she is a financially secured candidate with a good credit score. This will help you in furthering the approval process.