Any bank, any credit organization, ensures that the borrower is able to repay his credit before making him a loan offer. When buying a vehicle, the conditions for obtaining a car loan are no exception to the rule. Explanations.
Criteria for accepting a car loan: sufficient and sustainable income
Disposable income is the first element to be examined by the funding agency. Indeed, the borrower or the co-borrowers must present sufficient resources to hope for the acceptance of the car loan. Banks do prefer perennial income, but not everyone is a public servant. The income taken into account is therefore not limited to wages.
Pension, retirement, rental income, unemployment benefits, income of the self-employed, allowances, dividends … all income can strengthen the file. To demonstrate that the car credit conditions are met, the applicant will be required, as appropriate, to submit the following documents:
- tax notice;
- tax returns to URSSAF;
- various certificates justifying other resources.
Conditions for accepting a car loan: measured charges
To study a car loan application, it is also necessary to inquire about the charges of the applicants. Having a high level of income does not mean that one fulfills the conditions for obtaining a car loan.
The composition of the household as well as the age of the borrower (s) are also examined, as well as the financial situation. Owning your home can be an asset, provided that the current loan does not have a large impact on the rest of your life.
Auto credit: a debt ratio below 33%
With the information collected, the lender will be able to calculate the debt ratio of the applicant. This is the key element of the acceptance conditions. A ratio is achieved between the declared income and expenses (other credits in progress).
The debt ratio should never, in theory, exceed the 33% threshold. Among the acceptance criteria, the amount of capital to borrow and the monthly payments to be reimbursed from this car loan are therefore decisive. Note that the duration of repayment of consumer loans is limited. This is why the coherence of the acquisition project is also at stake.