Documents Required for Mahindra Finance Car Loan

• 1. Identity Proof (Any One):
  • PAN Card (mandatory for credit checks and tax purposes)
  • Aadhaar Card
  • Passport
  • Voter ID Card
  • Driving License
• 2. Address Proof (Any One):
  • Aadhaar Card (if not used as ID proof)
  • Passport
  • Utility Bill (electricity, water, or gas bill—not older than 3 months)
  • Voter ID Card
  • Rental Agreement (registered) with utility bill
  • Bank Passbook or Statement (with address, stamped by the bank)
• 3. Income Proof:
  • For Salaried Individuals:
    • Salary Slips (last 3 months)
    • Bank Statement (last 6 months, showing salary credits)
    • Form 16 or Income Tax Return (ITR) for 1–2 years
    • Appointment Letter or Employer Certificate (optional, if requested)
  • For Self-Employed Individuals:
    • Income Tax Returns (ITR) with computation of income (last 2 years)
    • Bank Statement (last 6 months, showing business transactions)
    • Business Proof: GST Registration, Shop & Establishment License, Partnership Deed, or Professional Certificate (e.g., for doctors, CAs)
  • For Farmers/Agriculturists:
    • Land Ownership Documents (e.g., 7/12 extract, mutation entries)
    • Bank Statement (last 6 months, showing agricultural income)
    • Crop Sale Receipts or Income Certificate from local authorities (if available)
    • Note: Formal income proof may be relaxed in rural areas; alternative documents like passbooks may suffice.
• 4. Vehicle-Related Documents:
  • For New Car Loan:
    • Proforma Invoice or Quotation from the dealer (specifying ex-showroom price)
    • Car Details (make, model, variant)
  • For Used Car Loan:
    • Registration Certificate (RC) copy
    • Insurance Policy (valid and active)
    • Valuation Report (from an authorized valuer or Mahindra Finance’s empaneled agency)
    • Transfer Papers (if applicable)
  • For Loan Against Car (Top-Up/Refinance):
    • Original RC (to prove ownership)
    • Insurance Policy (current and comprehensive)
    • Proof of no existing loan (NOC from previous lender, if applicable)
    • Valuation Report (to determine loan amount eligibility)
• 5. Photographs:
  • 1–2 passport-sized photographs (often required for offline applications or loan agreements)
• 6. Application Form:
  • Duly filled and signed Mahindra Finance Car Loan application form (provided online or at the branch)
  • Includes personal details, loan amount, tenure, and vehicle information
• 7. Additional Documents (If Applicable):
  • Co-Applicant Documents: Same as above (ID, address, income proof) if a co-applicant is involved
  • Guarantor Documents: ID, address, and income proof (rarely required, depends on credit profile)
  • Post-Dated Cheques (PDCs) or ECS Mandate: For EMI repayment setup (if requested)

Key Factors for a Mahindra Finance Car Loan

• 1. Applicant’s Profile:
  • Age: 21 to 58–60 years at loan maturity. Younger/older applicants may require a co-applicant.
  • Employment Type:
    • Salaried: 1–2 years' experience with stable income.
    • Self-Employed: Business operational for 2–3 years with consistent profits.
    • Farmers: Based on agricultural income and land ownership.
  • Income Level: Minimum ₹20,000/month (salaried) or ₹2 lakhs/year (self-employed/farmers). Higher income improves eligibility.
  • Credit Score: 650+ preferred. Lower scores may qualify in rural areas but with higher interest rates.
• 2. Loan Amount and Repayment Capacity:
  • Loan Amount: Up to 100% of ex-showroom price (new cars); 90–100% of valuation (used cars); ₹47 lakhs max for top-up loans.
  • Debt-to-Income Ratio: EMI should be one-third to half of monthly income.
  • Existing Liabilities: Can reduce eligible loan amount.
• 3. Vehicle Details:
  • New Cars: Any passenger or utility vehicle (Mahindra, Tata, Hyundai, etc.).
  • Used Cars: Not older than 5–10 years; combined car age + tenure ≤ 8–10 years.
  • Loan Against Car: Must be fully owned and not older than 5–7 years.
  • Vehicle Value: Based on ex-showroom price (new) or valuation report (used).
  • Brand Preference: Special deals may be available on Mahindra cars.
• 4. Interest Rates and Loan Tenure:
  • Rates: Starting ~10.5% p.a. for high credit scores.
  • Tenure: 1–5 years (12–60 months). Longer terms reduce EMI but increase interest.
  • Market Conditions: Interest rates depend on RBI repo rate and economic trends.
  • Location: Rural borrowers may see slightly higher rates.
• 5. Documentation:
  • Completeness: Submit ID, address, income, and vehicle-related papers.
  • Authenticity: Mismatched or fake documents result in rejection.
  • Rural Flexibility: Land documents may be accepted as income proof.
• 6. Geographical Location:
  • Coverage: Applicant must reside in a serviced area (Mahindra has 1,386 branches).
  • Urban vs. Rural: Rural customers may get lenient criteria but higher rates.
• 7. Down Payment:
  • Contribution: Voluntary down payment reduces EMI and interest.
  • No Down Payment Option: Available, but total loan cost increases.
• 8. Purpose of Loan:
  • New Car: Easy approval with complete documents.
  • Used Car: Depends on condition and age of the vehicle.
  • Top-Up/Refinance: Based on value of the vehicle and previous repayment record.
• 9. Processing Fees and Charges:
  • Processing Fees: ₹3,000–₹5,000 or 1%–2% of the loan amount.
  • Penalties: 4%–5% foreclosure charges or late fees if applicable.
• 10. Co-Applicant or Guarantor:
  • Support: Can boost eligibility and help secure better terms.
  • Requirement: Not mandatory but may be recommended for low income or credit score.
• 11. Mahindra Finance Policies:
  • Special Schemes: Offers on Mahindra cars and seasonal promotions available.
  • Risk Assessment: Final decision based on internal credit scoring.
• 12. Economic and Regulatory Factors:
  • RBI Guidelines: Influence maximum rates and lending policies.
  • Inflation: Impacts interest rates and affordability.