At the age of 18 coming of age. From this moment on, a person acquires full legal capacity, he has full-fledged rights and obligations of a citizen of his country. Adult age implies the fact that anyone can take on credit obligations. And since, in most cases, owning a car is a goal for many young men and women entering the adult life, this raises the question: from what age do they give a car loan?
The banks have their own opinion on this. It would seem that can prevent a banking organization from giving a loan to an adult person? But the bank does not adhere to the formality of laws, such a financial institution trusts its experience and statistics more. In many banks, the minimum age for car loans is strictly regulated: young men – from 23 years old, girls – from 22. But this does not mean that at age 18 you will not approve car loans. So from what age do they give a loan and is it possible to take a car loan at the age of 18? This will be discussed today.
How does age affect the decision of the bank?
If you decide to purchase a car at the expense of credit funds, then you need to contact a bank specialist to form an application. The application can be submitted either through the department or online on the website, or directly through an employee, who may be located at an outlet in the car dealership.
The specialist after your application forms a request through the software, which automatically analyzes the data and gives an answer about the possibility of granting a loan. The age of the borrower plays a big role. As we have said, in many banks it is regulated and, if you do not fit the parameters, the bank will most likely refuse you.
But this does not mean that an 18-year-old man will not be able to buy a car through bank financing. And from the age of 18, you can take a car loan, because companies in this area are in a highly competitive environment, and this fact contributes to the fact that they have to lower the age bar to attract more customers. Therefore, there are banks that consider young customers individually and put forward a number of additional requirements:
- The presence of a guarantor from among relatives. At the same time, the guarantor himself must also be eligible for the loan processing.
- Having a military ID for a young man. Or another document that would confirm that the client will not be called up for military service.
Also, since the bank assumes additional risks, it can offer more stringent conditions under the contract than the average market offer:
- Increase the loan rate. On average, supply in the market is balanced in the region of 15-23%. Due to the increased risks, the bank offer may be up to 30% per annum.
- Make a compulsory registration of Casco.
- Suggest a short term contract. Usually, loans for cars are issued for up to 3-5 years.
- Limit the maximum amount. The loan amount depends largely on the income of the borrower. For those who are under 23 years old, they can limit the maximum amount to 500,000 rubles.
- Require increased down payment. On average, the down payment is 20%. It all depends on the tariffs and conditions of the loan agreement.
What documents are required?
With how many years give a car loan, we decided, and then what documents will be needed? The standard list of documents includes a passport and a second document to choose from: a driver’s license, passport and other identity documents. Also mandatory will be a military ID for guys. Since financial companies do not want to issue money to the category of borrowers that will not be available to them in the case of overdue debts.
You will need a copy of the workbook and income statement issued in the accounting department at the place of work. There are certain restrictions on seniority. Often this is the year of general experience and six months at the last place of work. Therefore, in any case, 18-year-old young people will have to first acquire an official place of work, and only then think about a loan. Although this question is also individual, the bank can give a loan to those who have not completed a year of official experience, but have a guarantor with an impeccable credit history and good income.
Other factors affecting the decision of the bank
Banking organizations are more loyal to the female sex. Based on statistics, representatives of the beautiful half of humanity are less likely to have overdue debts, are more responsible in meeting their obligations, and there are fewer cases under such contracts.
The presence of marriage will also be a positive factor. This is a definite indication that young people have a greater degree of responsibility and awareness. But full-time education at a university can adversely affect a bank’s decision, since, according to financial companies, this category of citizens does not have enough time for a stable and full-fledged salary.
Although it is also an individual question. And if there is a guarantor and, for example, a pledge that will cover the cost of the transaction, it is quite possible to receive financing.
What are the alternatives?
How to get a car loan, with how many years they give, we have already disassembled. But what if banks still refuse such a service? To do this, you can use a consumer loan. Consumer lending may be at a slightly lower maximum amount than a car loan, but in many banks it can be obtained from the age of 18. Such proposals are also from among the top banks and from among lesser-known companies.
Therefore, it is possible to accumulate part of the money independently, and use part of it by issuing a loan for cash. Proposals can reach up to 100,000 rubles at 20% for a period of up to 5 years.
Tips from the author
If you decide to draw up a loan agreement at such a young age, then you need to carefully weigh the pros and cons. A number of important factors must be taken into account:
- Financial confidence . As a rule, 18–20-year-old young people do not have adequate experience and qualifications. As a result, employment becomes temporary and unstable. By issuing a loan agreement, you are taking on financial obligations that somehow have to fulfill. Therefore, it is necessary to be confident in your own source of income throughout the term of the contract.
- Credit history. Since this is most likely the first loan, it will largely determine the future attitude of banks towards you. All repayment information is transferred to the National Bureau of Credit Histories. Banking organizations are working very closely with this structure. And if you allow delay, violate the terms of the contract, then in the future it may adversely affect the issuance of loans. All information in the NBKI is stored for at least 10 years, and, for example, deciding to issue a mortgage, you will receive a waiver due to a damaged credit history.
- Also, credit history can be used for their own purposes. Before a major transaction with the bank, you can get a small loan for a period of three months – six months, and successfully repay it, making payments according to the schedule. Thus, you will form a positive credit history, which will increase your chances for a further car loan.