What is Car Loan?
A Vehicle Loan is a loan that allows you to purchase two and four-wheelers for personal use.
How To Qualify For A Car Loan In South Africa
Personal Requirements
- Age – 18 years and older.
- Employment – Permanent.
- Salary – On-going monthly salary of no less than R6,500 p/m.
- Citizenship – South African or permanent resident of South Africa.
- Credit history – Financers will run a credit report to check your lending habits.
How much credit score do you need to get a car loan?
As a thumb rule, banks consider a CIBIL score of 750 or higher creditworthy. A score of 650 or less is deemed too low to be given a loan. The CIBIL score is based on your payment history across loans and credit cards.
How long does it take for car finance to be approved in South Africa?
If the loan approval process takes long, don’t worry, this can be a lengthy process. It can take anywhere between seven days to two weeks once all the documents have been received and everything is signed. Once this part is over and if your loan has been approved, the legal stuff like homeowner transfer, etc starts.
How does car finance work in South Africa?
The bank pays the dealer in full on your behalf, then you pay back the loan with interest in monthly installments over an agreed term – usually, between 12 and 72 months, although it can be longer in certain cases. The longer the term of the loan, the more interest you will pay in total.
What is the quickest way to increase your credit score?
How to Build Good Credit
- Review your credit reports.
- Get a handle on bill payments.
- Use 30% or less of your available credit.
- Limit requests for new credit.
- Pad out a thin credit file.
- Keep your old accounts open and deal with delinquencies.
- Consider consolidating your debt.
- Track your progress with credit monitoring.