All About Auto Loan You Should Know(6)
Legal vehicle loans
Applying for automobile consumer loans, if the borrower is a legal person, in addition to providing identity cards, account books, income statements, asset certificates, but also need to provide business license, agency code, tax registration certificate, etc., and the legal person must be their own.
Interest-free loans
Interest-free loan to buy a car is a auto loan preferential scheme put forward by dealers according to market demand, to a certain extent, to reduce the pressure of consumers to buy cars. And interest-free auto loan concessions are not available for all models, there are certain restrictions. So what are the limits to buying an interest-free loan? Which models can be loaned?
According to people familiar with the situation, interest-free loans to buy cars are not available for all models to enjoy this policy, only models that meet certain conditions can apply for interest-free auto loans. In general, there are two conditions for applying for interest-free loans to buy a car:
1, model limits. Typically, interest-free auto loans are a discount offered by dealers for specific models, not all models are appropriate.
2, the monthly repayment is larger. Some models require consumers to pay less than 5000 yuan per month, compared with this type of repayment pressure is relatively large.
Interest-free loans are often targeted at unpopular models, but not all models can enjoy the offer. And the models involved in interest-free loans are often sold at the guide price, rather than the dealer's in-store offer, which is usually much higher. And even if these models have a discount is much less than the full car purchase. In addition, interest-free loans tend to be higher than the down payment spaid by ordinary loans, and sometimes the repayment terms will be shorter, so that the pressure to buy a car is also very large, even more than the ordinary loan to buy a car.
Five-level Classification
Normal Loans
Borrowers can fulfill the contract, has been able to pay debt and interest, there is no negative factors affecting the timely and full repayment of the loan principal and interest, the bank on time and full repayment of the loan principal and interest has full confidence. The probability of loan loss is 0.
Focus on Loans
Although the borrower is in a position to repay the principal and interest of the loan, there are a number of factors that may adversely affect repayment, if these factors continue, the borrower's ability to repay is affected, the probability of loan loss will not exceed 5%.
Subprime Loans
The borrower's repayment ability obvious problems, relying entirely on its normal operating income can not fully repay the loan principal and interest, through the disposition of assets or external financing or even the implementation of mortgage guarantee to repay the interest. The probability of loan loss is 30%-50%.
Suspicious Loans
Borrowers are unable to repay the principal and interest of the loan in full, and even if the mortgage or guarantee is executed, it is certain that some of the losses will be caused, only because there are factors pending the borrower's reorganization, merger, merger, collateral handling and pending litigation, the amount of the loss is uncertain, and the probability of the loan loss is between 50% and 75%.
Loss of Loans
Refers to the borrower has no possibility of repaying the principal and interest, no matter what measures and procedures are performed, the loan is doomed to lose, or although a very small part can be recovered, but its value is also very small, from the bank's point of view, there is no meaning and the need to retain it as bank assets in the accounts, for such loans after the implementation of the necessary legal procedures should be written off immediately, the probability of loan losses in 75%-100%.
