The car loan is a bank loan to purchase a car - new or with mileage. When making such a loan, the purchased vehicle becomes a pledge, which will serve as debt repayment. Thanks to the banking service, you can buy a car when lacking your own funds.
Specificity of car loans
Auto on credit implies that the bank's client will pay interest specified in the contract. Their size and duration of debt repayment are prescribed in the document. In addition, a borrower's expenses include a commission for the services provided by the banking institution. In case of untimely payment, the lender will apply penalties.
After buying a car acquired on credit, the owner can freely use the vehicle. Before repaying the loan, the borrower has no right to sell, give or otherwise align the car. Such actions should be coordinated with the Bank.
Often, one of the requirements of the car loan is the mandatory design of the CASCO insurance policy on the purchased car.
Where to contact?
For the design of the car loan, a person can contact the bank or use the services that the car dealership provides the conditions here. The last option is good because you do not have to spend time on the choice of a suitable banking institution. True, the number of banks with which the automobile salon works, most likely, will be small. In addition, they may not have the most favorable conditions.
Who can arrange an auto loan
To obtain a loan, the borrower must comply with the necessary requirements. Man's age should usually be from 21 to 60 years. Citizens from 18 to 20 years can also use the car loan service, but in their case there may be a submission of additional documents. Among the conditions presented to conclude a loan agreement is the need to be a citizen of Russia, to have registration at the place of residence, as well as a permanent job, the income on which will allow to repay debt obligations in time.
What documents do you need from the borrower
The list of necessary documents for obtaining a loan for the purchase of a car may differ depending on the specific bank. This list may include:
· An application form, which provides a bank;
· Passport of a citizen of the Russian Federation with a mark on registration;
· Certificate of income and taxes;
· Copy or extract from the employment record.
Those whose age is from 18 to 20 years, it may be necessary to provide documents that confirm the presence of kinship with the guarantors.
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