Are you tired of jumping commercial buses in Naija? Who wouldn’t be tired? The trouble is on another level. The long hours of waiting at the bus stop, unruly behavior of drivers and conductors, tightness of the seats, dealing with troublesome passengers and forgetting your change with the conductor are just some of the troubles that you would be free from if you get your own car.
Are you just tired of your old car due to its many car problems? Whatever the case may be, bottom line is, you need a car, a brand-new tear rubber one at that. For financial reasons, you cannot go over to the car dealership and pay for one. Do not worry, you have the option of getting a car loan in Nigeria from financial institutions in the country.
Without further ado, come along with Naijauto as we show you all checklist requirements for a car loan in Nigeria!
Most Nigerians are very religious. They turn every single thing into a religious matter. Fasting for a month and attending night vigils will not automatically make the bank to approve your car loan application. It is either you meet their requirements or you do not. You can increase your chances of getting a favorable response by ensuring that you are eligible before sending in your application.
Requirements for salary earners to get a car loan in Nigeria
1. Minimum salary range
Car loan applications are not for everyone. To be eligible, you must meet the minimum salary requirement which is from N150,000 to N250,000 considering the type of car you are looking to get.
Why is this so?
Financial institutions are business ventures. They do not give car loans as part of their Corporate Social Responsibility (CSR). This is one of the avenues through which they make profit. So, they ensure that only those who have the capacity to pay back the loan and their profit can get it. If your salary is lower than the range mentioned, you may have to look elsewhere.
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2. Three months account statement or pay slip
Another item on the checklist to get a car loan in Nigeria is the provision of your bank account statement of pay slip for the last three months. If you apply for the loan now (June), you will be required to provide your account statement or pay slip for April, May and June.
Why is this so?
This is to confirm the minimum salary discussed above. The minimum salary is not a one-off. They need to see consistency in your salary over a period of time (three months in this case).
If you just started earning up to the minimum salary listed, you should not be in a hurry to apply for a car loan straight away, your application will most likely be rejected. Wait until you are paid for the next three months.
To increase your chances, you might even want to wait a little longer than that, just to prove to them that you have been earning high for long, and can pay up the loan without stress.
Salary and non-salary earners must prepare different documents for a car loan
3. Loan tenure
As with all loans, car loans in Nigeria have a stipulated duration of time you are expected to pay up. The acceptable time is 12 to 36 months i.e 1 to 3 years. Since these financial institutions are running a business, understandably, they need to get their money back without taking forever, so they can invest it in other ventures. If you are hoping to get a longer period of time to pay back, that will not happen.
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Requirements for non-salary earners to get a car loan in Nigeria
Some people are not salary earners. They run their own business(es). This category of people is not exempted from getting car loans in the country. The onus lies in their ability to meet the stated requirements.
1. Minimum monthly income
Being an entrepreneur or running a business does not automatically make you eligible for a car loan in Nigeria. The financial strength of your business is taken into consideration.
Similar to the minimum monthly income of salary earners, non-salary earners are meant to have a minimum monthly income of N150,000 to N250,000.
The reason for this is the same as discussed above.
2. Four months account statement
Financial institutions offering car loans would need to see your bank account statement for the last four months to ascertain your minimum income. In other words, they need to be sure that business has been good over this period of time which is a sign that you can pay up the loan.
3. Loan tenure
Just like salary earners, non-salary earners will get a loan tenure of 12 to 36 months i.e 1 to 3 years as the duration of time required to pay up the loan. Anything more than this is not acceptable, and is considered a breach of contract.
Good luck with your loan application!
>>> Don't forget to come back Naijauto.com for more car buying & selling tips!