Progress does not stand still, banking services are improved every year. Today, you can get some types of loans and get money without personal contact with the bank. Everything is done remotely. Unfortunately, this cannot be said about this type of loan as car loans. Although today it is possible to submit an online application and get a preliminary decision from the bank.
Such an opportunity saves a borrower’s time considerably, since he can simultaneously send such questionnaires to several financial institutions.
Having received the answer and preconditions, you can choose a profitable and most economical option for yourself. And after already prepare a package of documents and go to the bank for registration of car loans.
You can apply online for a new or used vehicle. The borrower is obliged to indicate in such an application reliable information about himself, his income, family composition, place of residence, work.
If the client indicates incorrect data, he will be refused a loan, if not during the preliminary processing of the questionnaire, then as a result, when he brings the package of documents to the bank.
Today, almost every bank can send an online application. Banks provide various options for car loans, including with state support, under special programs (in collaboration with car dealerships, dealers).
Today, you can get a car loan within a few days, without providing collateral. The collateral is a purchased vehicle.
Only in some cases, the bank asks for additional liquid collateral or guarantee.
Car loans are available from six months to five to seven years. Rates depend on many parameters, and are calculated individually for each customer.
It is allowed to issue car loans without acquiring CASCO policies, life insurance, without providing certificates of income and without making a down payment. But under these conditions, the loan rate will be very high.
Ways of registration
Making a car loan remotely is easy.
To do this, it is enough to have a computer with Internet access and:
- select a bank or several different financial institutions and submit online applications;
- wait for preliminary decisions from banks, review the proposed conditions, dwell on the optimal offer for yourself;
- choose a car (if you have not yet decided on the model);
- collect personal documents and documents for cars;
- make a down payment;
- issue insurance policies (CASCO, life and health insurance);
- sign a loan agreement with the bank and get your car.
What banks issue car loans online?
You can submit an online application to several credit institutions at once, after receiving a preliminary response, to select the most advantageous offer for yourself.
In the table we give the basic conditions for car loans, but they may differ from those offered by a credit institution after processing the data of a potential borrower.
– on a new car300,000 – 5,000,000- from 7.67%;
– 14.0%½ – 5 yearsIt is possible to design with CASCO, without insurance, under special conditions Bank3,000,000from 18.5%up to 5 yearsAdvance payment – from 15%VTB 24 (several different autocrediting programs)5,000,000from 19.9%
Advance payment – from 20%-Bank: – standard terms;
– for card holders and employees of partner companies
– 3 000 000;
– from 21.49%
– from 17.99%1-5 years
Advance payment – from 15%
Advance payment – from 10%ICD4,000,000from 16%½ – 7 yearsAdvance payment – from 15%
Requirements for borrowers
For customers wishing to get a car loan, banks express certain requirements, mainly they are as follows:
- borrower resident of the Russian Federation;
- the client has a permanent registration and residence permit in the region where the bank branch is located;
- age – 18 (23) – 60 (65) years;
- working capacity;
- the presence of seniority – from 1 year.
- positive credit history.
In addition, banks may require the fulfillment of other conditions, for example: the ability to provide liquid collateral, provide a guarantor, provide a certificate of family composition, the absence of debt for various obligations, etc.
The fee for the use of the loan consists of several parts: the body of the loan, interest, bank commission fees, penalties, etc.
All components, except for the interest rate, are fixed.
The following parameters affect the car loan rate:
- customer solvency;
- initial advance payment;
- purchase of life insurance and hull insurance policies;
- loan period;
- condition of the car (new, used);
- vehicle year;
- client status (salary client, employee of a partner company or a borrower under standard conditions).
Also, the lending program influences the interest rate, for example, car loans with state support can be issued at a rate of 7.67% per annum, while standard lending programs offer loans from 14.0-19.9% per year.
List of documents
To issue a car loan, a bank customer needs to collect a small set of documents consisting of:
- civil passport;
- driver’s license;
- copies of employment record;
- documents confirming solvency (certificate of employment, bank form, account statement, etc.);
- vehicle purchase agreement;
- a copy of the passport of the car, certified by the dealer, personal manager of the car dealership;
- documents confirming the payment of the initial advance;
- invoice for payment of a part of the car cost
- invoice for payment or documents confirming the payment by the hull insurance policy.
The Bank has the right to demand other documents, including the provision of liquid collateral or a guarantee of an individual.
The online application, which the future borrower submits to the bank, is processed within a few hours, after the client receives a notice of the preliminary decision of the bank.
Terms of car loan programs are standard from 1 / 2-1 years to 5-7 years.
The borrower has the right to repay the debt ahead of schedule and close the loan. But before you do this, you should read the agreement carefully and clarify whether there are any commissions for such an operation.
Today, only a few banking institutions charge a commission for such an operation.
The client has the right to repay the debt in any way convenient for him.
This can be done online, using client-bank, either:
- in the bank, through the cashier;
- in terminals;
- in other financial institutions.
Choosing one of the above methods, it is necessary to clarify whether there is an additional fee for the transfer of funds and take this circumstance into account when calculating with the bank.
The car loan itself must be repaid once a month, according to the schedule attached to the loan agreement. Payments can be equal or “falling” (decrease every month).
For late payment of the next payment, the bank charges a penalty, its amount can be viewed in the loan agreement.
In addition, an employee of the bank can transfer the loan file to the credit bureaus where the borrower’s rating is likely to be lowered.
Pros and cons
The obvious advantage of online car loans can be called the following points:
- apply and get a preliminary decision can be without leaving your home and immediately in several banks;
- various options (programs) for car loans;
- design of new and used cars;
- the possibility of registration without the purchase of insurance policies (CASCO, life and health).
The disadvantages can be safely attributed to the fact that, despite the screaming name “online car loans”, it is impossible to arrange this type of loan remotely.
The borrower still needs to personally (or through the personal manager of the car dealership) submit a package of documents to the bank, and then come to the loan officer to sign the loan agreement.
All that is embedded in the concept of “online” is the filing of an application via the Internet for a loan, being outside the bank.