The conditions of a car loan
The terms of a car loan are about the same for all funding agencies. The main advantage of this type of credit is that it allows to obtain a fixed rate credit: a very advantageous condition since the borrower who will subscribe to the loan will be able to pay a monthly payment in the invariable amount, for the duration of the loan..
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Conditions of acceptance of a credit application
As for the value of the interest rate, it varies according to the amount borrowed. The repayment term is also an important factor, since the borrower usually has one to several years to repay his debts. The maximum credit period for the purchase of a car is 5 years.
With respect to repayments, as with other personal loans, the auto loan is repaid by fixed monthly installments. These monthly payments include the repayment of the capital plus the interest required by the bank.
Some banks may even offer to borrowers, auto credit offers that can be refunded before term, without penalty.
Find a credit offer tailored to your needs
If the terms of a car loan are about the same, it is still advisable to make a comparison to find an advantageous credit offer.
Indeed, the APR applied may vary from one bank to another. This is the reason why a borrower can save money by trying to find the car loan offer that offers a more affordable APR.
To compare the offers and terms of each credit institution, the borrower can consult an online loan comparator which allows seeing directly the terms of each loan offer.