Auto loans with state support
Auto loans with state support draw attention as a more profitable option. The purchase of personal transport or the replacement of old vehicles is expensive. Today, many people can not afford to immediately pay the full cost of the desired car and therefore turn to financial organizations to get a loan and get the opportunity to pay the debt in parts for several years.
Due to the unstable situation in the economy, financial organizations had to significantly increase annual interest rates, resulting in a very large overpayment for transport on such a loan. Trying to find a way to save money on purchases, many people today pay attention to the option of obtaining auto loans with state support.
Advantages and disadvantages of auto loans with state support
The main advantage of such car loan programs is the ability to save significantly. This year, each participant pays only a third of all interest on a car loan, which is accrued by the bank. The remaining amount will be repaid by the state budget. Overpayment on the loan in this situation is insignificant, and therefore these lending programs are very attractive to the population.
When making a decision to use car loan programs, which partially cover the interest of the state, you should be aware of the existing disadvantages. They are some restrictions, for example, you can only conclude such a deal if you buy a transport. You can get a foreign car on credit, but only if it was going to be on European territory. There are restrictions on the weight of the car; up to 3.5 tons, and the cost up to 1.15 million.
If you decide to make auto loans with state support, you should have at least 20% of the cost of the car to pay the initial payment. When signing the contract, the person agrees that they will repay their loan debt in full within a period not exceeding 36 months. Credit transport becomes a pledge under the car loan agreement, so you will have to issue a CASCO policy for it and renew it every year until the debt is fully repaid.
Where to apply for such a loan?
For a long time, banks remained the leader among banks where it was possible to get a loan for the purchase of personal transport with state support. In this financial organization has been addressed very often, because the citizens most of all trust him. Now it has begun to cede its leadership positions to other commercial financial organizations.
Usually, a person who decides to get a preferential car loan does not look at the name of the bank, for him, other indicators are much more important. Today, borrowers do not want to overpay, and therefore select auto loan programs based on how favorable conditions are offered for them. You can send an application to several organizations that allow you to apply for auto loans with state subsidies. After that, from the positive responses, you can choose the option with which the overpayment for personal transport will be the least.