If you’ve always dreamt of owning a car whether new or used, but don’t have the money now, an auto loan will be the best alternative option.
There are banks in Ghana ready to finance your dream with the best options to buy your new car.
An Auto/Car Loan is a credit facility designed for customers of a bank to access as a source of finance to purchase any vehicle of their choice.
Just like the Ecobank auto loan, Cal bank and Fidelity bank has car loan facilities that are open to individuals, professionals, consultants and salaried workers with recognized institutions to acquire vehicles for personal/company use.
Although these facilities can help you get a car and pay later, terms, offerings and features of the loan must be critically considered.
In this article, I have compared the auto loan offerings of Cal Bank and Fidelity, to guide you make the best choice. So, keep reading.
1. Auto Loan – Cal Bank
Cal Bank is available and ready to finance you to buy your dream car. Here are the details of the offer;
What are the offerings of Cal Bank Auto Loan?
- Loan Repayment: Annuity payment Method (Same amount is paid monthly)
- Age of Vehicle: The vehicle must not be older than five (5) years
- Tenure: 60 months or less
- Security: Charge over vehicle to be purchased
- Personal Guarantee of applicant
- Provident Fund if any
- Vehicle shall be registered and insured in the joint names of Cal Bank and client
- Debt Burden: Not more than 45% of income
- Pricing: Cal Bank Base Rate + Agreed Margin
- Arrangement and Processing fees: 3% (to be paid upfront)
- Maximum Loan: The Bank finances up to 80% of the value of the vehicle
- Insurance: The vehicle will be comprehensively insured
- Readily available credit on a timely basis
- Flexible terms of repayment
- Prompt advisory services shall be given by a team of dedicated account managers
How can I qualify for Cal bank auto loan?
Your eligibility for the car loan is dependent on the following;
- You must have a minimum salary of GH₵500.00
- Must be aged 18 – 53 years
- Employment Records: 6 months or at the discretion of the credit manager
- Account History: Six (6) months Bank Statement is required from clients with account relationship with other Banks.
- Clients shall be updated on monthly loan repayment via our Cal Bank Alert
What are the requirements for Cal Bank auto loan?
You must meet the following requirement to access the car loan facility;
- Account Relationship: The qualified client must be an account holder to access the facility
- How to Apply for Cal Bank Auto Loan: The client should complete the Auto loan application form
- Security: Security required may include the vehicle to be purchased, Provident Fund, Landed Property and Employer’s Guarantee, Near Cash Securities, Shares, Warrants, etc.
For more enquiries, you can contact Cal Bank for through the branch locator.
2. Fidelity Auto Loan
Fidelity offers you a Personal Auto Loan facility to help you get a car. The facility is a medium-term facility available to salaried employees of organizations under Fidelity Bank’s Employer Managed Relationship
Benefits of the Fidelity Auto Loan:
- No collateral required
- Flexible repayment periods up to 60 months
- A quick and easy loan application process
- Competitive interest rates on loan
- Higher loan amounts – up to GH₵ 350,000
- Covers both brand new and slightly used vehicles
- Transfer of loans from other banks at concessionary terms (Terms & Conditions apply)
Features of Fidelity Auto Loan
- Debt service ratio of up to 50% (depends on net monthly salary)
- Repayment period from 12 – 48 months (60 months for selected professionals)
- Finance new and used vehicles (used vehicle not more than 5yrs from the date of manufacture and not more than 36 months of use)
- Minimum net monthly salary of GH₵4,000 and above (including allowance).