A lot of people dream of owning their personal cars, but are often limited by finances. In Ghana, banks usually offer car loans to individuals with regular stream of income or can prove their capacity to repay the loan.
If you don’t have a steady flow of income, it may be difficult to access a car loan in Ghana. But if you’re a salaried worker with at least Gh₵1,500.00 net monthly income, you can apply for a car loan and pay later.
We have gathered the best banks that offer car loans in Ghana, the requirements for the loans, and how you can apply. You are on your way to becoming a car owner, so keep reading.
What is a car loan?
A car loan is credit facility offered by financial institutions to individuals who want to own cars. This type of loan is usually given to people who have a steady flow of income.
Since this is a medium term loan facility, if you’re a non-salaried worker but still wants to access a car loan, you will need to back your application with extra proof that you can repay the loan.
What do I need to apply for a car loan in Ghana?
Just like any other loan, you must get some requirements right to get your car loan application approved faster. The basic requirements for car loans in Ghana;
- You must be a salary worker.
- The vehicle you want must be brand new (but in some cases 1 – 5 years old)
- Complete a loan application form
- Sign a customer request letter
- Copies of most recent pay slips of 6 months
- National identification card/document
- Passport photographs
- Must be a Ghanaian nationality, more than 18 years. or Ghanaian resident for more than 10 years, self-employed.
There could be other requirements specific to the financial institution you choose for the loan.
How much salary do I need to get a car loan in Ghana?
The minimum salary for car loan in Ghana is about Gh₵1,500, at least for Ecobank Auto Loan. However, if you have a regular income and have being saving with a bank that offers car loans, you have a good chance of getting approval.
What is the minimum amount for car loans in Ghana?
There is no actual minimum amount of car loan, but the maximum amount you can borrow to buy a car varies among banks in Ghana. The highest so far is the $100,000 Ecobank auto loan. Your income and capacity to repay the loan can prove significant to the amount you will get.
What are the steps to getting a car loan?
Here are the processes to getting an auto loan;
- Know your income; Be sure your net income is sufficient enough to help you pay off the car loan.
- Create a budget; decide the amount of car loan you can afford.
- Pay off outstanding loans; make sure you have repaid any outstanding loans before adding more.
- Contact a Bank that offers a car loan; the bank will assess your eligibility and tell you the conditions applied.
- Go car shopping: After the bank has preapproved your application, you can go shop for the car.
- Finalize the car purchase: Choose a car dealer you are comfortable with, and sign the dealership paperwork before driving off.
Read This: Ways to get your loan approved faster
Which banks in Ghana offer auto loans?
These companies and banks offer car loans in Ghana;
- Republic Bank – Adeshie Platinum Auto Loan
- Stanbic Bank – Vehicle Loan
- Societe Generale – Auto Loan
- Fidelity – Auto Loan
- Cal Bank – Auto Loan
- Ecobank – Auto Loan
- Advans Ghana – Auto Loan
- FBNBank Ghana Ltd. – Auto Loan
- Bank of Africa – Asset/Vehicle Finance
- Suzuki Ghana (CFAO-motors) – Auto Finance Solution
Benefits and features of buying a car on finance
Here are some benefits of a car loan;
- Suitable contract terms
- Loan up to 100% of the car price
- Availability of currency options
- Flexible repayment condition and duration
- Competitive interest rate
- Spread of repayment
Final words on Auto loans
Car loan is a convenient way to finance a car purchase. However, if your income will not be enough to repay the loan, don’t go for it.
Also, make sure to understand the offering and the terms and conditions with your bank. Have a debt repayment strategy in place to guide you to pay off the loan in time.