Having a car is a dream for everyone. Merely, a car is not a privilege anymore, but it’s our right to travel comfortably. But we may wonder how much it is going to cost us. Most of the time, the total cost of a car may consume our total life savings. In this situation, if we get a car loan from a bank for purchasing our dream car that is not bad at all.
But there is also the problem that we don’t know which bank is providing car loans, its conditions and requirements. Here I’m trying to ease this problem in this discussion. To help people purchase their dream car most of the banks introduce car loans in their loan category.
This product by banks allows car financing to the customer segment. Under this scheme, the vehicle will be hypothecated to the bank only. In addition to this registration requirement, on a case-to-case basis, banks may also secure the loan partially by the commonly accepted form of cash/ quasi cash securities available in the market.
Read Also: What are the procedures for applying for a Motorcycle Loan in Bangladesh?
Car Loan Feature
- Loan amount Maximum BDT 40,00,000.00 (Limit may be fixed upon the bank’s satisfaction on customer demand) for both Recondition & Brand-new car.
- Repayment tenure Maximum 5 years for reconditioned car & 6 years for Brand new car.
- Payment method- Equal Monthly Installments.
- Up to 50% to70% of the quoted value of the car. (Varied from Bank to Bank)
Read Also: What are the procedures for getting Lease Financing from Banks?
Eligibility for getting a car loan in Bangladesh:
- Any Bangladeshi individual who has the means and capacity to repay 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 taxpaying businessmen of repute, any employed/ self-employed tax-paying individual having a reliable source of income.
- Age limit: Minimum 25 years, Maximum 65 years at loan maturity.
- Regular income from a sustainable & valid source of employment or business. Monthly surplus income (after meeting all expenses) shall be at least BDT 25,000.00.
- For salaried individuals, minimum service length of 3 years and must be a confirmed employee. For a self-employed individual, a business record of minimum of 3 years.
- Manufacturing year / Model of the vehicle should not be more than 5 years old.
Required Documents for getting a Car loan:
- Copy of NID (Applicants & Guarantors).
- Photographs (Applicants & Guarantors).
- Latest utility bill (Preferably electricity bill).
- Latest 1 year bank statements.
- Latest Tax clearance certificate /return receipt of tax.
- Acceptance of Car quotation from a vendor.
- Clean CIB report.
- Additional Required Documents (For Salaried Individuals).
- Letter of introduction stating salary, issued by the employee.
- Income related documents.
- Additional Required Documents (For Businessmen).
- Copy of trade License.
- Company’s bank statement for last one year.
- Memorandum of Articles for Limited Liability Company.
- For business profiles, documents related to any permission related issues from necessary authorities (if applicable).
- Additional Required Documents (For Self-Employed Individuals).
- Professional Certificate issued by the authorized institution.
- Additional Required Documents (For Landlords).
- Valid documents of the property.
- Rent receipt/deed.
Interest Rate
Interest Rate: 09% (Subject to change as per Bangladesh bank order & banks discretion).
Other Fees & Charges:
- Processing Fee: Imposed by banks as per their schedule of charges. You may ask the bank official for their schedule of charges.
- CIB, Loan documentation fee & Other charges imposed by banks.