In Ghana, auto loans are mainly given to salaried people with a reliable source of income. In today’s world, having a car has always been essential.
A car purchase is a major choice. Numerous considerations should be taken into account when choosing the appropriate design, model, and features.
But for many people, a lack of cash flow has turned into a barrier to obtaining such loans. Therefore, as a salary earner, it is wise to be aware of the options for financing a car purchase.
This article covers all aspects of applying for a car loan in Ghana, including requirements and application procedures.
About auto loan in Ghana
An auto loan is a sort of loan or financial aid for those who want to acquire a car who are often employed. However, the type of car the borrower can actually purchase is restricted by insufficient funds. Some folks in Ghana have a lot of car savings. And loan companies are there to suit these people’s demands.
With a car loan, you can borrow money to buy any kind of vehicle while repaying the lender over time with interest. They always require the car you want to buy as security for auto loans.
This implies that if you are unable to repay the loan as promised, they will seize the vehicle from you and sell it to a third party to cover the outstanding balance.
The medium-term Vehicle and Asset Finance (VAF) option is available to both salaried and non-salaried customers. They aid their clients in the acquisition of assets including power generators and various sorts of vehicles.
What are the requirements for car loans in Ghana?
Before requesting any loan, including a car loan. Your initial thought is probably “what and what do I need for the loan.” The first step in determining your eligibility for the loan is to be aware of the fundamental requirements.
The criteria for automobile loans in Ghana are shown below:
- Applicants must be salaried workers in order to be considered.
- No more than GHC 150,000.00 loan amount offered.
- The longest facility term is 48 months.
- Must be a brand-new vehicle.
- An exhaustive loan application.
- Letter of request from the client signed.
- Copies of the last six months’ worth of payslips.
- Valid national ID card
- A passport sized picture
How to Get a Car Loan
- Investigate your credit report.
- Obtain auto loans from several lenders.
- Obtain preapproval for a car loan.
- Set your budget with the loan offer.
- Locate your automobile.
- Review the financing offer from the dealer.
- Select and complete your loan.
- Pay your bills on time.
Banks in Ghana that offer car loans
Here are a list of banks in Ghana that offers auto/car loans.
- Izwe savings and loan
- Microfinance and Small Loan Centre (MASLOC)
- Stanbic Bank Ghana
- Republic bank Ghana
- Societe Generale
- Universal microfinance
- First bank Ghana
- Advance Ghana saving and loan
- AIDEZ small project international
Benefits of car loan in Ghana
Applying for auto loans has advantages. You might be curious about what you might benefit from taking out a car loan.
- Flexible timeframe for payback
- Suitable term
- Currency Alternative
- Affordable interest rate
What is the minimum amount for a car loans in Ghana?
Knowing the loan amount that can be obtained in Ghana for a car loan is crucial. This will aid in the planning of your investment management strategy.
In Ghana, there is no set minimum loan amount for auto loans. Most likely, you can borrow whatever you need to buy the car. The maximum amount you can borrow is fixed at several savings and loan institutions.
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