Auto Loans - FAQ
What type of documentation may I be asked for?
The documents required may vary from lender to lender, but you may have to provide the following documents:
- copy of valid state-issued identification,
- proof of residence,
- proof of income.
What amount of Auto Loan can I get?
When buying a new car, your Auto Loan can cover up to 100% of the car's value. However, some banks have set a limit beyond which loans are not offered. Another thing is that different institutions have different offers depending on the car model and the second-hand market value of the car.
Is my credit profile important?
Yes, your credit profile is essential for lenders. It's the most important aspect they take into consideration while deciding whether you are eligible for the loan.
Is a collateral required?
No, in most cases there is no collateral required. However, some lenders may require some kind of assurance, for instance your car, as a collateral to protect themselves in case you default on payments.
Can I repay my Auto Loan ahead of schedule?
Yes, you can pay off your Auto Loan ahead of schedule, but bear in mind that this might entail some additional fees. Usually it is a percentage of the remaining amount of your loan.