Car Loan Requirements and Rules to Understand

Nowadays, the requirements for car loans are becoming increasingly strict. With the growing car market in Indonesia, the demand and purchasing power are also increasing. Especially now there are financing institutions that provide facilities for purchasing cars using an installment system.

In order for the financing company to approve your loan application, there are several requirements that must be met. Although financing companies have quite varied requirements, there are general requirements that must be fulfilled.

Car Loan Requirements

Here are some requirements for applying for a car loan, among others:

1. Completeness of Documents

When applying for a car loan, make sure you have prepared the necessary personal documents for administrative purposes. These documents are important to facilitate the loan process and to convince the leasing institution to accept the credit you apply for.

The documents commonly requested include:

ID Card (KTP)
Family Card
Tax Identification Number (NPWP)
Electricity bill
Salary slip
Copy of SIUP/TDP for entrepreneurs
Bank statement
Certificate of domicile.

2. Income According to Loan Installments

Once the documents are complete, the income requirement is another aspect that should not be overlooked. If your income is not sufficient to make the loan installment payments, your loan application will certainly be rejected.

Not only that, do not forget to calculate all your other expenses. Make sure that your income is only enough to pay the car installment and does not lead to default in case of urgent needs.

So, what is the minimum salary to apply for a car loan? Essentially, it is not just about how much salary you have, but what percentage of your salary will be paid for installments each month.

Of course, lenders will look at whether your cash flow is healthy enough to meet those monthly payments. The amount of income that can be considered safe for buying a car is an expenditure of 30% of income for installments.

Thus, if you have an income of Rp20 million, the maximum car installment should not exceed Rp6 million.

3. Down Payment Preparation

Another requirement is the down payment (DP). The DP can vary, ranging from 0% to 50%. However, the common amount is between 20% to 30%. It all depends on your choice and the lender's policy.

Actually, does a large down payment make the loan application easier to approve? While it does not always guarantee approval, a large down payment indicates a strong commitment and financial responsibility. Therefore, the chances of approval become greater. Hence, it is important to know the details of car loan simulation calculations.

4. Credit Score

Another car loan requirement that should not be forgotten is the credit score. In Indonesia, this checking system is called BI checking. Essentially, Bank Indonesia has an automated data collection system that uses leasing or bank credit facilities.

Therefore, make sure you do not have problematic credit and have a good credit score. Credit scores range from 300 to 850. A credit score is considered good if it is above 720. The results are divided into numbers from 1 to 5.

To achieve a good credit score, ensure that your current installments are paid on time, and also make sure you have settled debts in your name.

Once the car loan requirements are met and you have your dream car, do not forget to perform regular maintenance. You can have maintenance done at an official Daihatsu workshop. With an online service registration system, you do not have to wait in line for a long time just to have periodic service.

Tips Sahabat

Car Loan Requirements and Rules to Understand