Any bank, any credit institution, ensures that the borrower is able to repay his credit before making a loan offer. As part of the purchase of a vehicle, the conditions for obtaining a car loan do not derogate from the rule. Explanations.
Criteria for accepting a car loan: sufficient and sustainable income
Disposable income is the first element that will be examined by the funding agency. Indeed, the borrower or the co-borrowers must present sufficient resources to hope for the acceptance of the auto loan. Of course, banks prefer perennial income, but not everyone is a civil servant. The income taken into account is therefore not limited to wages.
Pension, retirement, rental income, unemployment benefits, income from the self-employed, allowances, dividends, all the income can come to reinforce the file. To prove that the car credit conditions are respected, the applicant will be required, as the case may be, to submit the following documents:
• tax notice ;
• tax returns to the URSSAF;
• various certificates justifying other resources.
Conditions for accepting a car loan: measured expenses
To study an application for auto credit, you must also inquire about the expenses of the applicants. Having a high level of income does not mean that you qualify for a car loan.
The composition of the home and the age of the borrower (s) are also examined, as is the heritage situation. Owning your home can be an asset provided that the current credit does not impact much of the rest to live.
Auto loan: a debt ratio of less than 33%
With the information collected, the lender will be able to calculate the applicant’s debt ratio. This is the key element of the acceptance conditions. A ratio is made between revenues and expenses (other loans in progress) declared.
The debt ratio should never, in theory, exceed the threshold of 33%. Among the acceptance criteria, the amount of capital to borrow and the monthly repayments of this auto loan are therefore decisive. Note that the repayment term of consumer credit is limited. This is why the coherence of the acquisition project is also at stake.