Introduction To Buy Now Pay Later Car Loan:
buy now pay later car loan: Ever wanted to own a vehicle but did not have enough money to complete the purchase or wanted to pay monthly for it due to money constraints? Do you have a regular paying job with a regular monthly income with an established institution, then this blog post is for you. It is no secret that buying a car in Nigeria is almost always comes at a premium price.
At the end of this blog post, you will be able to get a car right now and pay it off later. Just stick with us to the end. We will be talking you through everything you need to know about the Car installment scheme.
What is an Installment Loan?
An installment loan is a type of loan where you borrow a set amount of money all at one time. You then repay the loan over a fixed number of payments, called installments. Many installment loans also have fixed payment amounts, meaning the amount doesn’t change over the life of the loan — whereas if you have a variable interest rate that amount can change. An installment loan is more convenient because the total interest amount is calculated at the very beginning, but you should be ready that this type of loan can cost you more than the usual car loan.
What is a Car Loan?
However, for a car loan as the name implies, it is a type of loan acquired to buy a car. Most times for a car loan to be acquired, the car loan company pays directly to the car seller or the car company, and the customer pays back to the loan company with interests or in some cases, the car company gives out the car to the buyer who pays over a period with interests to the car company. The seller also has an interest in such operations, because of the tax reduction and interest earnings. But in such cases, there are also risks that the customer wouldn’t pay everything on time, so the companies are protecting themselves and do not offer installment payment services to every interested Nigerian. The person who wishes to buy cars in Nigeria through such a loan system must meet the requirements.
What requirements do I need to get a car loan?
For a smooth and comfortable car loan application, you will need to provide a range of documents that prove you’re a reliable borrower. These documents may differ from organization to organization. These documents can be summarized as:
- Personal information and identification – In these categories, the information needed include but is not limited to the following:
- Your full name
- Your age
- Your date of birth
- Citizenship information
- A list of dependents (children, elderly, or sick relatives you care for, etc.)
- A driver’s license
In some cases, other additional forms of identification may be required such as your passport and other personal documents. As earlier stated, this is dependent on the car loan organization.
- Proof Of Income – Questionably, the most important thing for a lender when assessing a loan is your ability to repay it. In this category, the following information might be needed
- 2 or more most recent payslips
- Bank statements for the last 3 months showing your incoming and outgoing expenses
- current living expenses, such as rent or mortgage repayment
- Information about your car and insurance – It is important to know the details of the car you wish to buy; this will help calculate the repayment fee and influence other decisions. This information includes:
- A dealer invoice or contract of sale (contains address, contact numbers, and ABN)
- The vehicle chassis number
- The year, make and model of the car
- Information on the vehicle’s registration
- Information on the car’s fuel efficiency
Importantly, it’s highly likely you will need to provide proof of comprehensive car insurance before receiving the stamp of approval.
There are lots of credible Car loan companies in Nigeria, one of such is Sofri. Sofri Offers Car loans to individuals at affordable rates, with no collateral, require. There are no hidden charges with Sofri loans, and it takes 2 hours to process which means that you can request a same-day loan. Car loans can be paid up to 24 months lease tenor, how convenient. This means that with Sofri loans, you have nothing to worry about as you can get the car of your choice and even do more. Visit the Car loan page to learn more about Sofri Car loans.
Benefits in obtaining Car loans from Sofri.
- Low-Interest Rates on Loans:
Many believe that same-day loans always come with high-interest rates. Then again, at Sofri, interest is very minimal. Lenders pay as little as 1% on their loans. So, they don’t have to worry about high-rate interest rates.
- Easy Loan Application Process:
When you are in dire need of money, the last thing you want to do is go through piles of paperwork and wait days or weeks for approval. Expanding in popularity, many lenders like Sofri offer quick, accessible online applications for car loans. With Sofri, many borrowers secure loan approval within just 30 minutes, while others receive decisions in about 1-2 hours or even more. At Sofri, you can request up to 5 million naira and get it in less than 24 hours.
- Repayment Terms on Loans:
With Car loans, you get to determine the terms of your repayment. It’s always good to pay back your loan as soon as possible, as you want to settle any debts quickly for your credit history. At Sofri, you can pay off your same-day loan for up to a year. You get to choose what works best for your financial situation.
Why your loan application (buy now pay later car loan) might get rejected
Despite your best efforts, sometimes, slip-ups can still be made in the process, while, other times, no amount of trying can help you overcome your situation. But a car loan rejection shouldn’t ruin your hopes of financing a vehicle. It should, however, help you see what areas you need to focus on before applying again.
- Unstable or insufficient income – If you can’t prove how much you make or your source of income, approval isn’t likely. Lenders want to be certain you can afford your payments. It won’t matter how good your credit score is if they’re not sure of your income.
- Habitually poor credit history – If your credit reports show you continually pay your bills late, make partial payments, and/or show several unpaid bills in your past, you may not get the approval you’re looking for, especially if you have a poor credit score.
- Too much debt – Lenders compare your current debt, including the potential loan and auto insurance payments, to your current income amount using a calculation called a debt to income (DTI) ratio. They total all your monthly bills and divide them by your gross (pre-tax) monthly income. If the outcome is 50 percent or more, lenders are likely to turn down your loan.
- Inaccurate or incomplete information – Whether on accident or not, it can be easy to enter the wrong information on your application. Something as simple as a misspelling or wrong number might cause your application to be rejected. Also, if you forget to send over copies of additional documents – such as proof of income – your application can be turned down because it’s incomplete.
What You Can Do My Loan Application is Turned Down
The most important thing to do after your auto loan application gets rejected is to find out the cause of the rejection. If it was because of your credit, you can take steps toward improving your credit by paying your current bills on time and If money was the deciding factor, you can improve your current financial situation by setting money aside each month for a larger down payment and creating a budget for a future auto loan.
Conclusion:
Now, you shouldn’t shy away from buying that car you have always wanted. The hassle of boarding a taxi and other public transport can be very terrible. You have the option to pay installmentally for that car you want to buy. With Sofri as your plug for Car loans, you can have the dream car of your choice within the twinkle of an eye. Visit the Car loan page to learn more about Sofri Car loans.
