All You Need to Know About Auto Loans

Posted by amrina alshaikh on June 20th, 2019

We all have a desire of having our own vehicle. Be it anything, a small hatchback which will fulfil your basic needs of travelling or a luxurious sedan which represents your prestige; getting a car is always a dream for everyone. The Gulf countries like Kuwait welcome thousands of people in the country; some of them are expats, and some look forward to residing in the country forever. Furthermore, the natives of the country also have a high demand for vehicles as commute becomes essential for personal as well as business purpose. This leads to getting high demand for vehicles and simultaneously auto loans. Reading further will help you out about getting an auto loan in Kuwait.

Auto Loans

Finance becomes the priority when we decide upon a particular vehicle. Investing hard-earned money directly into a vehicle by taking it on hard cash is not a beneficial way to make it. Instead, many people think of investing a bunch of money somewhere and taking an auto loan in Kuwait, which helps them get the vehicle at almost minimal interest. But, before approaching a particular bank, you must understand what the basics of auto loan in Kuwait are.

Eligibility

All the banks in Kuwait make it mandatory to be a customer before applying for an auto loan. Therefore, you must get connected with a bank, open an account and then get a loan. Follow the basic process of the bank to open an account. The auto loan in Kuwait can be availed to purchase a new or used vehicle. For this, you can take loan up to KD 25 thousand with the maximum tenure of five years. You can choose the tenure from 12 months to 60 months, whichever suits you best.

Rate of Interest

Banks offer interest rate calculator on their websites where you can get a suitable quote by manipulating tenure and loan amount figures. This will give you a proper amount of instalment at the rate of 6%, which is approximately common across the country. The interest is calculated on reducing balance method, which means, as the principal amount decreases, the instalment also decreases.

Other Essentials

Like other loan services, auto loan in Kuwait can be availed without any indemnity. Besides, you can insure your loan as in case of any unfortunate event such as demise, the half of the future instalments are taken care of by the insurance provider. Another important thing is most of the banks don’t ask you to transfer your salary to the bank account. It can be deducted from the current one whichever you possess. Auto loan in Kuwait can be settled earlier without any additional fee.

Today, auto loans are offered online, and most of the banks have hassle-free processes which can be completed within a few minutes. Once the bank analyses your application, you are notified through the registered contact details.