With the recent boost in the economy, obtaining a car loan has become easier in Ghana.
The financial sector, as well as loan companies, have become increasingly interested in lending money to help individuals finance the purchase of a vehicle.
In addition, applying for a car loan in Ghana has become more convenient since most of the process can now be done online.
Before reviewing the list of car companies in Ghana, let’s examine what a car loan is.
What Is a Car Loan?
In general, a car loan is a loan taken out to purchase a vehicle, with the lender being paid off with interest.
Loans for vehicles are secured with collateral, which is always the vehicle you wish to purchase.
In the event you cannot pay your loan back as agreed, they will take possession of the vehicle and sell it to another entity to pay off your loan.
Prior to signing up for a car loan, you need to think about these four factors.
They include loan costs, down payment, interest rate, and loan terms.
Loan Costs
Car loans have two basic components: interest and principal.
The principal is the car’s major cost.
As for the interest, it refers to the costs over the loan’s life that are applied to the principal amount and the interest rate applied to it.
Taxes, delivery, and title costs are typically included in the loan costs.
Down Payment
The down payment is the amount paid upfront at the time of purchase.
In most cases, down payments are calculated as a percentage of the total price of the vehicle you plan to purchase.
Note: The bigger your down payment, the smaller the amount you will need to borrow.
Interest Rate
Interest rates are determined by the terms and conditions of the loan.
Car loans may have annual percentage rates and interest rates.
An annual percentage loan entails extra charges.
Terms and Conditions.
These consist of all the documents and agreements that accompany a car loan.
Examples are; default, repossession, repayments period, insurance, and so on.
It is therefore crucial that you fully understand what you’re getting into before you apply for a car loan.
Having an understanding of these terms will be very beneficial when you apply for a car loan.
Prior to signing a loan contract, it is always prudent to read its terms and conditions carefully.
Here are several companies that can provide you with a car loan today:
AutoChek Ghana
We have provided much information about AutoChek Ghana, concerning how you can apply for a car on a loan as an individual. Check here and read more about: How To Apply For A Car Loan In Ghana
Stanbic Bank – Vehicle and Asset Finance
Stanbic Bank’s Vehicle and Asset Finance (VAF) provides salaried and non-customers with a medium-term finance option to obtain immovable and movable assets, such as motor vehicles and power generators for their own use.
FBNBank Auto Loan
The FBNBank Auto Loan product allows eligible applicants in paid employment to obtain vehicles by using the bank as a lender.
Societe Generale.
In order to obtain a car of your choice, 80% of the funds required to purchase the vehicle are provided by Societe Generale.
With their 60-month repayment schedule, you can repay your loan easily and comfortably.