One of the first requirements when considering an application for a loan is to confirm the solvency and employment of the borrower. This significantly limits the ability to apply for a car loan without a certificate of income for those who do not have official work or cannot provide official certificates of wages. Salary payments in an envelope make it impossible to prove to the bank its worth, which allows it to incur financial obligations under the loan. For this category of citizens in banks, a special type of lending is provided – without proof of income.
Positive features of autoloan without references
Car loans without guarantors and wage confirmation provide an opportunity in a short time to get the desired amount and become the owner of the car. Programs are designed for both new cars and used vehicles.
Despite all the risks associated with the lack of proof of solvency, banks are taking a number of measures that increase the security of cooperation and the return of funds: increased annual rate, registration of collateral, comprehensive insurance.
The lack of need to collect additional references and request documents from work entails many positive points:
- Consideration of the application does not require verification of the fact of employment and solvency, which means that the time for consideration of documents is reduced.
- Purchase is made within a short period of time, the buyer, who chose the car in the car dealership, will be able to get the approval of the bank within half an hour.
- A shorter loan period, by increasing the financial burden on the client, will make it possible in the very near future to get rid of collateral and manage the car at your own discretion.
- You do not need to specifically get a job with which you can provide the necessary income statements.
- Avtozay available without guarantors, freeing from the problems of finding a decent candidate for a person who will take responsibility for the successful payment of the entire debt to the bank.
- Easy car registration process using express programs will allow you to take an accelerated car loan without income certificate not only for a new car, but also a used one.
Banks lend money to a borrower who has not provided salary certificates, while simultaneously taking increased security measures in order to protect their finances. This is reflected in the terms of the simplified auto loan:
- Increased interest rate. Due to the risk of default, banks increase rates on average by up to 5% when compared with a standard car loan.
- High share of down payment – most credit institutions increase the share of own funds to half the value of the car.
- Smaller loan amount. The limit is set by each bank separately.
- Reduced loan repayment period. In most cases, it will not be possible to repay the debt to the bank within the maximum possible period of 7 years. Most often, the lender will require repayment of the debt with interest over a three-year period.
- Compulsory motor hull insurance on credit. Insurance will minimize the risks of the transaction in the event of an insured event, car loss. If the buyer refuses to issue a voluntary insurance policy, the loan will be refused.
- Collateral. The purchased car on credit will be pledged from the bank until full repayment of the principal and interest on the loan.
Many banks are positioning such programs with a minimum of documents as “express loans”, since you can take a car loan within one working day.
The bank will offer to purchase a car in centers and salons cooperating with a credit institution. Thus, the choice of cars on credit will be limited from the list available in the center at prices set by the seller.
Requirements for borrowers
Since the income statements for the express program are not provided, the security service will especially carefully check the borrower’s credit history. A high proportion of the likelihood of getting an express loan from people with a flawless history. After all, this parameter is the main way to ensure the responsibility of the payer.
In addition to the history of repayment of previous loans, banks put forward the following requirements:
- working age over 21 years;
- at the time of the last installment of the loan, the client must be less than 65 years old;
- Russian citizenship;
- registration at the address in the region of presence of one of the bank branches;
- repaid debt obligations to other creditors.
The main risk for a borrower who decides to get a car on an express loan is concluded in the need to make large monthly installments over a short loan period. In the case of force majeure, loss of health, disability, earnings, it will be quite difficult to service the loan.
Car loan for non-working citizens
If in the standard version of a loan, an organization checks whether a potential borrower has a job and his income level, then when applying for an unemployed person, it is very difficult to provide evidence of his solvency.
The question of whether you can buy a vehicle with a bank loan, worries all motorists working informally. The option of issuing a loan to persons without legal employment seems unlikely. However, this possibility still exists.
If the future car owner applies to the bank for a car loan, his actions in relation to the lender will depend on the reason for the lack of income certificates: the lack of a permanent job or the inability to obtain an official certificate of earnings.
If a potential client does not have a job at all, or the income is variable, you will not be able to receive a loan at a bank on standard terms. Most often, this category of citizens includes students, young professionals, citizens without formal employment. The lender, refusing to issue a loan, proceeds from the fact that the lack of work makes it impossible to repay the loan. Meanwhile, the income of a citizen can be quite high from other sources, or in the near future a large flow of funds is expected, sufficient to fully pay the debt and interest.
Since a regular car loan becomes unavailable, you can use a loan in a microfinance organization. However, the funds received are hardly enough to pay for a used car, not to mention the purchase of a new modern car. In addition, the percentage overpayment will be so significant that there will be a question of the justification of such a purchase. Offices issuing microloans give money at very high interest rates, thereby compensating for the risk of default on the part of other borrowers. In fact, the borrower pays for himself and for non-payers, compensating for the financial losses of the organization.
Express car loans – the best option to solve the problem of finding funds. The interest on such a loan will be lower than in microfinance organizations, and the repayment period will be longer. Thus, the option of using a car loan without income certificates is a reasonable way, although less profitable compared to the standard conditions of auto loans.
There are situations when a citizen has a well-paid stable job, but the employer cannot issue a certificate confirming his labor income, since the person is simply not registered in the state. In addition to the fact that the employer gives a salary in an envelope and saves on payments to pension and social funds, the employee is limited in the choice of loan offers from banks.
The future car owner can apply for a loan on the terms of express loans. A similar option is available to persons who are officially employed but do not have sufficient work experience required by the bank. In addition, the borrower prepares the purchased car as a pledge of the bank, reducing its financial risks in case of non-repayment of debt.
It should be borne in mind that successful consideration of an application for a car loan without income certificates is possible only if the client complies with the other requirements imposed on the borrower and the car being purchased.
Additional sources of funds
If the conditions of the bank are impossible for a potential client, it is possible to find funds in a pawnshop or a microfinance organization. However, this option is only suitable in the case of guaranteed receipt of a large amount in the near future (premium, grant, inheritance).
If the car is required urgently, and large revenues are not expected, there remains one more option – rent a car. In this way, you can get the right to move by car, but it will remain in the ownership of the leasing company.
Currently, the list of Russian lenders who will give a loan without confirmation of income is quite extensive. However, the overpayment percentage and repayment terms are more stringent than a conventional loan.
To save time and effort when searching for borrowed funds, you can use online resources that allow you in a short time to determine the most acceptable option. The loan calculator, which is available on the website of each major bank, will provide an opportunity to more accurately calculate the amount of the monthly payment
In 2017, the following banks are ready to provide funds for the purchase of a car with a minimum package of papers:
For each credit institution, issuing funds to a client is always a risky business. The task of the bank is to minimize this risk. Making out a car loan without certificates of income and guarantors, the bank risks not to return its funds due to lack of earnings from the client. In the opinion of borrowers who have taken advantage of the simplified car loan offers, such a proposal is also associated with risk, since getting a car loan at very high interest rates means higher financial obligations. In addition, the repayment period is less than usual. The financial burden of a debtor bank can become unbearable in case of loss of work or illness of the client.
You should weigh all the advantages and disadvantages of this type of lending before you sign an agreement with the bank and assume increased debt obligations.