Basic loan idea how to get auto loan in Bangladesh

A loan is an amount of money advanced to a borrower, to be repaid at a later date, usually with interest. Legally, a loan is a contract between a buyer (the borrower) and a seller (the lender), enforceable under the Uniform Commercial Code in most states. The terms and conditions for repayment of a loan, including the finance charge or interest rate, are specified in a loan agreement.

A loan may be payable on demand (a Demand Loan), in equal monthly installments (an installments loan). It is also defined as when a lender gives money or property to a borrower and the borrower agrees to return the property or repay the borrowed money, along with interest, at a predetermined date in the future. Basic loan idea how to get the auto loan in Bangladesh.

Loan

Basic loan idea how to get the auto loan in Bangladesh

Requirements of Documents for Loan:

Common documents:

1)    Photograph – (2 copies)

2)    Passport/ National ID Card

3)    Utility bill copy of Resident

4)    Visiting Card

5)    TIN Certificate

6)    Offer letter & Bank statement of a loan (previously taken from other banks)

7)    Deed of agreement for (Home loan)

For Salaried Person:

1)    Salary Certificate as per bank format

2)    Payslip (last 3 months)

3)    Bank statement (last 06 months)

4)    Office ID card copy

5)    Previous Job Experience proof (If job length less than 2 years at present organization)

6)    Guarantor’s Photograph & Sign (spouse only)

For Businessman:

1)  Trade license ( 2 years proof)

2)  Memorandum of Articles & Association / Partnership Deed (which is available)

3)  Bank Statement

i) Personal (Last 01 year)

ii) Company (Last 01 year)

4)    LC copy / Work order / Dealership Certificate which is available

5)    Guarantor’s Photograph & Sign (Spouse & Neighbor Businessman)

Land Lord

1)    Ownership deed

2)    Rental deed

3)    Bank Statement (last 01 year)

4)    Electricity Bill of Resident.

Where can you get an auto loan?

Car Loan

Basic loan idea how to get an auto loan in Bangladesh

You can usually obtain an auto loan from the dealership you are purchasing from. If the establishment or private seller does not offer to finance you can go to your personal bank to get an auto loan. Sometimes local credit unions will allow you to open an account with them, they usually have slightly more aggressive rates on auto loans but may require you to carry a balance with them.

Is an auto loan is a personal loan?

An auto loan and a personal loan have the similarity in that they are both loans. Personal loans can be secured or unsecured. Secured meaning that there is some form of collateral to back up the loan

How can a 17-year-old get an auto loan?

Wait until your next birthday. A minor cannot enter into a legal contract, so no lender will give you a loan until you are at least 18. Even then, without a co-signer, it will be very difficult.

General Information

This product will allow vehicle financing to the customer segment in terms of bank’s policy. Under this scheme, the vehicle is hypothecated to the bank only. In addition to this registration requirement, on a case to case basis, banks may also wish to secure the loan partially by the commonly accepted form of cash/ quasi-cash securities available in the market. Basic loan idea how to get the auto loan in Bangladesh.

Customer Segment:

Any Bangladeshi individual who has the means and capacity to repay the bank loan. In specific terms, these could be salaried executives of multinational and middle to large size local corporate, Government officials, Officials working in reputed NGOs (Non-Government Organizations), international aid agencies & UN bodies, any tax paying businessmen of repute, any employed / self-employed tax-paying individual having a reliable source of income.

Purpose Purchase of non-commercial new and reconditioned vehicles for personal use only

Eligibility

Available for Salaried individuals, Business Persons, Self Employed & Landlord

Age between 21 at the time of application to 65 at the time of maturity

Minimum Monthly Income: BDT 25,000 (for salaried); BDT 35,000 (for others).

Length of service: Confirmed employment with total 1-year work experience.

Age of Business: Min 2 years

Features

Up to 50% of the quoted value of the car.

Loan Amount: Up to BDT 2,000,000.

Competitive Interest Rates

Tenor: 12 to 60 months.

For brand new and reconditioned cars

Documents Required

Latest one year’s personal bank statement

Photocopy of national ID/Passport

One copy passport size photograph of the applicant

One copy passport size photograph of the guarantor

Price quotation of the vehicle

Business card/ visiting card of the applicant

Personal TIN certificate

Additional documents required for a salaried person

Letter of Introduction stating salary, issued by the employer

Additional documents required for a business person

Copy of Trade License

Company’s bank statement for last one year

Memorandum of Articles for Limited Liability Company

Additional documents required for a self-employed person

Professional Certificate issued by an authorized institution

Additional documents required for self-landlord

Valid documents of the property

Rent receipt/deed

Schedule of Charges

Processing Fee: 1.0% of Loan Amount

Early Settlement Fee: 2% (within 1 -2 years), 1% (after 2 years and before expiry)

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