Preferential car loans: list of cars, conditions

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

As part of supporting the domestic auto industry and providing an opportunity for citizens to buy their own car, the state offers preferential car loans. It lies in the fact that due to the support of the state, a loan is issued for the purchase of a car on favorable terms, therefore, a reduced interest rate is set. If a person plans to buy a car using credit funds, then you should understand all the rules and nuances of obtaining such a loan.

Basic information

Due to the economic crisis, the demand for cars and credit products of banks has decreased significantly. This led to the need for the state to develop various programs that allow making a large purchase on favorable terms.

The preferential car loan program has been operating for several years, but numerous changes are made to it regularly, and subprograms are also formed. Numerous innovations were adopted in 2018. The main purpose of this proposal is the opportunity for every citizenbecome the owner of your car, with special attention to the acquisition of domestic cars.

Terms of Participation

In 2018, specific conditions for obtaining such a loan for the purchase of a car were established. Before applying for such a loan, you should clarify which banks work under this program. The conditions for preferential car loans are as follows:

• the cost of a car should not exceed 1 million 450 thousand rubles;
• a car loan is issued for up to 3 years;
• only new cars are bought, so no more than one year should pass from the moment of their release;
• requires the borrower to have 20% of the cost of the selected car, as these funds are used as a down payment;
• car must be made or assembled in RF;
• you can only choose new cars, so it is not allowed that they were previously issued to another person;
• The weight of the machine must not exceed 3.5 tons.

Due to such restrictions, only certain types of inexpensive cars can be purchased. People who do not have their own vehicle are attracted by preferential car loans. Banks under this program are usually large and stable.

The concept of preferential car loans

It is represented by a special loan, which offers favorable conditions to borrowers. Its main goal is to buy a car, which can be domestic or foreign.

The need for preferential car loans is due to low purchasing power and a severe economic crisis in the country, so citizens cannot buy a car at their own expense. The state offers a low percentage to car buyers. The difference in interest to the bank is covered by public funds.

Purpose of this offer

Federal security when buying a car on credit is intended to solve several problems that are significant for Russia. The state program of preferential car loans was introduced to achieve the goals:

• increase in demand for cars;
• increasing the interest of citizens in credit products;
• providing the population with their own cars.

A standard car loan offers an interest rate ranging from 15 to 25 percent, but when using this program, the rate is set at 8 to 10%.

Legislative regulation

The procedure for obtaining a soft loan for the purchase of a car is regulated by GD No. 364.

This program has been extended until the end of 2018, and is planned to be valid for several more years until the situation in the car loan market is resolved.

The essence of the program

Initially, you should figure out what this unique offer is. The state program of preferential car loans involves the provision by the stateassistance in the process of buying a car:

• the state pays 10% of the cost of the car as part of subprograms;
• if the bank sets the rate within 15%, then due to participation in the program it is reduced to 8 or 9 percent, since the difference is covered by budgetary funds;
• offer such loans in almost all major banks in the country;
• The purchased car itself acts as collateral.

The program started in 2009, but it was in 2012 that the highest demand for cars bought with credit funds was observed.

What cars can I buy?

To really count on state support in the process of buying a car on credit, it is important to choose a car that is included in a special list under this program. To significantly save their own funds, citizens often choose preferential car loans in 2018. The list of cars includes the most common and sought-after brands.

You can buy with state support cars brands:

• LADA;
• Renault;
• Nissan;
• Chevrolet;
• Fiat;
• Ford.

Preferential car loans can be applied to many cars of the above brands. The list of cars can be fully studied in PP No. 364.

How to buy a car on preferential terms?

If a person wants to participate in this program, then you should figure out which phasedsteps to do so must be followed. To do this, it is initially recommended to decide which car will be purchased. State preferential car loans are offered upon completion of the following steps:

1. Initially, a citizen determines which car he wants to buy, and it must meet the requirements of the program.
2. The dealer organization from which the vehicle will be purchased is determined, and the company must work with banks under the preferential program.
3. A bank is selected to offer a state-backed car loan, and the institution must be suitable for the requirements and desires of the potential borrower.
4. An application is being formed and submitted, to which the necessary documents for applying for a loan are attached.
5. Next, we need to wait for the decision of the bank and the state authority involved in the allocation of funds for soft loans to buy a car;
6. Concludes an agreement with the bank.
7. A down payment is being made to buy a car.
8. The loan agreement is transferred to the car dealership, after which the borrower receives the car.
9. He registers with the traffic police.
10. A mortgage and an insurance policy being issued;
11. You need to bring the TCP and insurance to the bank.

After completing all the above steps, it is only necessary for the borrower to make monthly contributions to the loan. Preferential car loans are considered easy to apply, therefore, with little effort on the part of the borrower, you can count on a low interest rate when applyingcar loan.

What documents are required?

To buy a car on the basis of preferential loans, the borrower needs to prepare certain documentation. It may vary slightly in different banks, but papers are required as standard:

• well-formed car loan application;
• driver's license;
• 2-personal income tax certificate from the main place of work;
• citizen's passport;
• TIN and SNILS;
• military ID card for men;
• marriage certificate if borrowers apply for a car loan under the Family Car program.

You can find out the exact list directly on the website of the selected bank. Before applying, you should decide which car will be purchased, as not all cars are offered preferential car loans.

Who can participate?

Requirements for citizens are made both by banks that issue loans, and by the state, which directs budget funds to cover the difference between interest. The preferential car loan program is available to citizens who meet the conditions:

• The borrower can only be a Russian citizen;
• he must be between 21 and 65 years of age;
• credit history must be positive, so past dues on other loans or outstanding debts are not allowed;
• if the borroweris a woman, then she should not have children under the age of 6 months;
• presence of a permanent and official job;
• high income to cope with loan payments;
• presence of a large amount, which should cover 20% of the cost of the car, since such a loan requires a high down payment.

Each offer is considered by the bank separately. If there are certain shortcomings or requirements are not met, then preferential car loans may be denied.

Which bank should I contact?

As part of the state program, strict conditions are imposed on banks that can offer car loans to borrowers on preferential terms. Institutions had to go through a specific selection process. Basic requirements include:

• authorized capital should be more than 70 billion rubles;
• 50% of the shares must be owned by the state.

In 2018, the requirements softened a bit, so more than 90 banks already offer preferential car loans. Therefore, borrowers can apply to Sberbank, VTB24, Rosbank, Rosselkhozbank or the Bank of Moscow. Each organization offers its own conditions and rates, but with the support of the state, borrowers can count on a rate not exceeding 9.5%.

What conditions are offered to families?

The program, which offers car loans on preferential terms, contains several subprograms. They are aimedfor different categories of citizens, which is why preferential car loans are so attractive in Russia. The family car is one of the sub-programs that is aimed at families that have the status of young or large families. The main conditions of this subprogram include:

• Citizens have official jobs;
• family income must be sufficient to make loan payments;
• families receive a 10% discount on the cost of the selected vehicle;
• marriage certificate required for young families;
• if a large family applies for participation in the program, then it requires an appropriate certificate and a certificate of family composition.

This offer is especially relevant for large families, as citizens really need a car to transport children.

Reason for rejection

Banks may refuse potential borrowers to participate in this program if there are serious grounds. Most often this is due to reasons:

• bad credit history, so in the past the citizen had delays and other problems with repayment of loans;
• select a car that is not covered by the program;
• required to buy a used car or a car older than one year;
• the application indicates a car whose mass exceeds 3.5 tons;
• a citizen wants to buy a car that was assembled in another country.

The most common refusal of banks isjustified, so the borrower is required to choose another car or increase income.

Can I use the program without a down payment?

PP No. 364 clearly states that in order to receive a subsidy from the state, the borrower is required to have a certain amount of funds, which is 20% of the cost of the car. But some banks offer slightly modified conditions. In addition, there are several sub-programs in which the conditions for granting assistance are simplified.

If you use the "Family Car" program, a 10% discount is provided on the purchase of a car, so buyers can initially count on a reduction in the price of a car. A discount is provided only when applying for a car loan at a bank. You cannot get it if you have your own funds. Under such conditions, it is advisable to issue a car loan for a minimum period with a small overpayment, due to which a 10% discount on a car is offered. Then you can repay the car loan early so as not to overpay for interest.

Benefits of using the program

There are many advantages to buying a car through participation in a government program. These include:

• loyal attitude towards potential borrowers from banks;
• opportunity to get a 10% discount on a car;
• Even families with many children or young families can get a car loan;
• offers low interest rate as the difference is coveredpublic funds, so the overpayment on the loan will be low;
• you can choose a car from a significant list of cars.

Thus, every citizen of the Russian Federation, subject to certain conditions, can count on a preferential car loan for the purchase of a new car. The state provides support by offering low interest or a discount on the purchase of a car. The requirements for borrowers are not too stringent, so almost everyone can take advantage of this offer.