Cars or automobiles today have evolved into something more of a necessity than a luxury like it was decades ago. Today, owning a car in no longer a status symbol (except perhaps if you own expensive sports and luxury cars) but more of a need to get you from one place to another. This is perhaps the reason why in almost all parts of the world applying for car loans are getting to be a very common activity among individuals. Applying for a car financing from any loan lender is the first step in owning a brand new car.
This is a tool or more specifically type of loans that is used to purchase a car or any other types of vehicles and this financial aid can be procured from the in-house financing of the Vehicle Company (or simply an assistance from them), banks and other large lending institutions. There are actually four basic things you need to know when applying for a car loan and these are the qualification requirements, from whom to apply the loan with, the legal obligations of taking out a car loan and more importantly insurance obligations because once approved, the car in question will be placed into a lien and the lender will have complete rights over the vehicle until the loan has been paid or the car’s loan mortgaged is released.
The qualification for a car loan (also a type of a bank loan if the assistance is provided by a banking institution) is strictly based on the credit rating or score of the loan applicant. Along with this, a review of your credit rating, income generating resources, income to debt ratio will be done by the lending institutions to ensure that the borrower will be able to pay for the loan.
In Singapore, there are six steps to follow in applying for a car loan and these are first, to choose the car you intend to buy.
Second, preparation of the various loan requirements such a copy of your legal identification, preferably your passport, two consecutive months of your original payroll receipts, proof of employment, credit rating, credit history and your contact number.
Third, these documentations along with your application will then be forwarded to the bank.
Fourth, if there no required missing documents you will be called in for an interview and if all the necessary requisites have been fulfilled and the bank satisfied, chances are your loan will be approved.
Fifth, before the loan is released, you and the bank need to sign documents covering repayment terms and conditions and after all of this have been accomplished, the vehicle will finally be released to you.
Singapore today have a number of banks and financial companies providing car loans to various individuals so it would be to your advantage to look for the right lending company that will suit your needs. Remember to compare their various offers so you can determine which one can give you the least interest on your loan.