A car loan is a personal credit that is given to individuals who want to purchase automobiles either for business or personal use. There are certain requirements that people are supposed to meet for them to qualify for a car loan, for example, proof of income, proof of identification, proof of residence, proof of insurance and many more. A car loan is provided by financial institutions such as banks and the requirements needed differ in each organization.
A car loan can be personally applied whereby the borrower go to the financial institution in person or it can be done online. Online applications are easy, fast and more convenient because they allow people to easily apply for car loans using their mobile phones and gadgets without having to go to the premises. There are online applications that are filled and some documents needed can either be scanned and sent as an email or faxed to the financier.
The amount of a car loan is based on the monthly income of an individual and as such the financier has the power to detect the amount to be given to the borrower. Only individuals who have attained 18 years and above qualify for a car loan as long as they are working and with the required documents. Almost all banks in South Africa if not all provide car loans to people payable in monthly installments.