Favorable conditions for car loans consist not only of a low loan rate, but also of other important conditions: loan terms, commission fees, insurance, and so on. In addition, you need to pay attention to other factors, such as early repayment of the loan, the time allotted for making a decision, the number of documents. Therefore, first you need to find a suitable bank, and only then choose a car and a car dealership with which the selected credit institution cooperates.
Requirements for the future borrower
At first glance, it seems that all car loan programs are the same. They provide for almost equal conditions and requirements for borrowers.
Each borrower must meet the following requirements:
- the borrower's age ranges from 18 (sometimes 21 years) to 61 years.
- work experience from 1 year.
However, many banks meet their borrowers halfway and soften these conditions by allowing a working pensioner over 60 years of age to issue a loan.
Quick consideration of the application
Timing may vary from bank to bank. It varies from a few hours to 5 days. Usually the final decision is made in 2-3 days. And do not forget one important point: the lower the loan rate, the longer the application review period. This is due to the fact that banks are trying to minimize risks and check the reliability of the client.
Maximum loan amount for a car
Choose banks that issue large sums for the purchase of a car (from one and a half to two million), because this speaks of the reliability and solidity of the credit institution.
Car loan security
Each credit institution seeks to mitigate risk. Therefore, banks require that the future car be pledged. Or the terms of lending involve a surety. Choose the most optimal solution for you, because it may be easier for you to issue a car as a pledge than to look for guarantors.
An initial fee
Find the lending organization for a loan that will suit you with the down payment. In many banks, this amount is 20-30% of the loan amount. Depending on the preferred loan program for some lenders, this figure can range from 0% to 50%.
Depending on the selected type of car loan and its term, the rate will differ. In addition, the lending interest rate depends on the initial payment and the choice of the period in which the loan will be repaid. The shorter the term, the less interest you end up overpaying.
There are also other criteria, for example, commission fees or requirements for a car, so before making a final decision and settling on a particular bank, you should familiarize yourself with its proposals.