All About Auto Loan You Should Know(1)

An auto loan is a loan made by a lender to a borrower who applies to buy a car, also known as a car mortgage.

The object of the loan: The borrower must be a resident of the permanent household where the loan bank is located, and have full civil capacity.

Loan terms: The borrower has a stable occupation and the ability to repay the principal and interest of the loan, has good credit, and can provide recognized assets as a credit, pledge, or sufficient ability to compensate a third party as a guarantor of repayment of the principal and interest of the loan and joint and several liability.

Line of loan: The maximum amount of the loan is generally not more than 80% of the price of the car purchased.

Term of loan: The term of the automobile consumer loan is generally 1-3 years, the maximum is not more than 5 years.

Repayment method: you can choose the one-time debt service method and the installment restitution method (equivalent principal, equal principal).

The automotive finance or guarantee company is the text - a third person with sufficient capacity to repay the loan is the guarantor of joint and several liability.

How to guarantee

(1) Car loans shall be handled by the insurance company to provide performance bond insurance;

(2) Car loans are handled by a professional guarantee company providing joint and several liability guarantees;

(3) The car purchaser shall provide a real estate mortgage guarantee for the purchase of a car loan;

(4) Car loans are pledged by the purchaser to provide the foreign currency deposit slip, government bonds and RMB wealth management products for the mortgage;

(5) Car loans are made by the borrower providing other guarantees approved by our bank (e.g. car dealer guarantees).

Application conditions

(1) The purchaser must be at least 18 years of age and a Chinese citizen with full civil capacity.

(2) Car buyers must have a more stable occupation and a more stable economic income or have easy-to-realize assets in order to repay the loan principal and interest on time. The easy-to-liquidate assets here generally refer to securities and gold and silver products.

(3) During the period of applying for a loan, the car buyer's account in the bank savings counter contains a deposit lower than the bank's prescribed down payment for the purchase of the car.

(4) Provide the bank with a guarantee approved by the bank. If the car buyer's personal account is not local, it should also provide a joint and several liability guarantee, and the bank will not accept the mortgage set by the car buyer with the vehicle purchased by the loan.

(5) The car buyer is willing to accept other conditions that the bank deems necessary.

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