Owning a car is a necessity these days, and money is usually scarce. So it is difficult to buy a car in Ghana. And lack of cash makes people get loans such as; travel loans, mortgage loans, quick loans, etc. Buying a reliable second-hand car is no simple task in Ghana. However, there are ways you can buy one beforehand and later pay back through car loans in Ghana. For this to happen, the seller and buyer have to agree upon these terms of purchase. In the rest of this article, we’ll see details on how to get the car loans and the financial institutions that offer them here in Ghana.
What you should know about car loan in Ghana
Vehicle and Asset Finance (VAF) is a medium-term facility for salaried and non-salaried customers. They help these customers to purchase assets, such as vehicles of various types and power generators.
Car loan is a type of loan or financial aid for majorly salaried individuals, who intend to own a car. It may limit them because of an insufficient fund for the particular car they have in mind. In Ghana, people make a lot of car savings. And there are loan companies available to meet the needs of the people. In case you have a dream of owning a car, you can outlive that dream today.
When you are looking for a car to buy in Ghana and you do not have sufficient money. You can approach various financial institutions that major in loans to people who want to purchase cars.
What are the requirements for car loans in Ghana?
Before you apply for any loan, car loan inclusive. What first comes to your mind is what and what do I need for the loan. The knowledge of the basic requirement is the first step that confirms your eligibility for the loan. Below are the requirements for car loans in Ghana:
- Applicants must be employees who earn a salary worker.
- Maximum amount of GHC150,000.00
- Maximum facility tenor is 48 months
- Vehicle must be brand new
- A complete loan application form
- Signed customer’s request letter
- Copies of most recent pay slips of 6 months
- National identification
- One passport photograph
Note: To apply for First bank car loan, you can download the first bank car loan form. Fill the form correctly, upload the documents they require, and submit at the nearest first bank branch.
What is the minimum amount for Car loans in Ghana
It’s important to know how much one can borrow for a car loan in Ghana. By knowing the minimum amount, the customer will plan on what to do with their funds. For Car loans in Ghana, there is no actual minimum loan amount. Probably you can borrow all you need to buy the car.
Meanwhile, some savings and loan companies have limitations to the maximum amount you can borrow. This is regarding your salary scale or credit score. But there is no limitation to the minimum amount.
If you want to buy a car on credit in Ghana with a loan, this is what you should know about the process:
1. Approach a credible financial institution
There are credible financial institutions that offer affordable car loans. Once you apply for the loan, the banks will assess your eligibility and they will decide on whether you qualify for the loan you are asking for.
2. Some car dealers will allow you to buy a car now and pay later in Ghana
They will require you to have a minimum percentage of the total price of the car. For instance, a car dealer may decide that you should pay 50% of the total price of the car first. So if the car you want to buy costs 1 million cedis, you will pay five hundred thousand cedis at the time of purchase.
3. You need a written agreement on the time limit for the repayment
Some dealers give the buyer an option of negotiating the time that is convenient for them. While some others fixed a time of repayment for the buyer. Go for the dealer whose terms you are comfortable with.
Banks that offer car loans in Ghana?
There are loan companies and banks that offer car loans in Ghana. They include:
- Universal microfinance
- Izwe savings and loan Kotobabi
- Advance Ghana saving and loan, Newtown branch
- Societe Generale
- Stanbic Bank Ghana
- First bank Ghana
- Republic bank Ghana
- Calbank
- Microfinance and small loan centre (MASLOC)
- AIDEZ small project international and so on.
What are the things I should expect for car loans in Ghana
Before applying, you ought to be aware of the car loans you are applying for. This allows you to know what you ought to expect from the loan company. Though this varies regarding loan companies but applies to most of them.
The following are the things to expect:
- GHC100 as the minimum overdraft limit
- There is no limit to maximum overdraft
- Monthly repayment of used limit or 30 days of a clean-up cycle
- 60% advance of your disposable net monthly salary
- Life insurance credit premium of 0.84% on approved limit against permanent disability and death
- Interest depends by overdraft used each month
- Facility fee of 2% charged on agreed limit and at each renewal
How can I get a Stanbic car loan?
Stanbic Bank Ghana may offer you a car loan just because you already have an account with them or have worked for them. You can follow the steps below for the application.
- Work for Stanbic profiled organization
- You must earn a minimum salary of GHS400 per month
- Minimum salaried account relationship of:
- One month – Workplace Banking Scheme companies/organizations
- Three months–non-Workplace Banking Scheme companies/organizations
- Customers with salaried Stanbic Current Account
You need to fill in a Personal Salary Advance application form and attach the documents below:
- Previous statement of account
- Pay slips from the past three months
- They will approve overdrafts subject to a positive reference from the credit bureau.
Calbank Auto Loans
They make car loans available to individuals, consultants, and workers who earn salary with recognized working institutions to get a car for personal or company use.
The following are the features of Calbank Auto Loans:
- Loan Repayment: Annuity payment Method
- Duration: 60 months or lesser.
- Personal Guarantee of applicant
- Provident Fund, if any.
- Vehicle registration and insurance in the joint names of CalBank and client.
- Debt Burden: Not over 45% of income.
- Pricing: CalBank Base Rate + Agreed Margin.
- Arrangement and processing fees: 3%.
- Maximum Loan: The Bank gives up to 80% of the worth of the vehicle.
- Readily available credit timely.
- Flexible terms of repayment.
- A team of dedicated account managers shall give prompt advisory services.
How can I be eligible for Calbank loan?
Before you can get a car loan from Calbank, there are certain requirements you must meet. They are;
- Minimum Salary: GHS 500.00.
- Age: 18 -53 years.
- Employment Records: minimum of 6 months or at the discretion of the credit manager.
- Account History: Bank Statement of six months from clients with account relationships with other Banks.
Note: They typically notify clients on monthly loan repayment via our CalBank Alert.
What are some benefits of car loans in Ghana?
The benefits of applying for car loans can be astounding. You may wonder what benefits you could get if you get a car loan.
The following are some benefits of car loans; they include:
- Suitable terms
- Self-service
- Currency Options
- Flexible repayment duration
- Competitive interest rate
Conclusion
A car loan in Ghana can be yours for a very reasonable rate. That dream of having your own car could become a reality with a car loan in Ghana. Because they repay the loan through a monthly installment from your salary. You need to be an employed individual. However, many financial institutions are available in Accra Ghana, to cater to this financial limitation regarding car purchases.
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