Loans and Insurance

Cal Bank: Auto Loan Vs Universal Motors Auto Loan

These days you can own a car without having to pay an immediate cash. If it is part of your plans to own a new car or slightly used one, you can access the Cal bank auto loan to do so.

Generally, an auto/car loan is a credit facility designed for customers of a bank to access and purchase any vehicle of their choice.

Cal bank has two auto loan facilities which are opened to individuals, professionals, consultants and salaried workers with recognized institutions to acquire a vehicle for personal/company use.

Although these facilities are to help you get a car now and pay later, the terms, offerings and features of the loan must be critically considered.

In this article, I have compared the Auto Loan and the Universal Motor Auto Loan offering of Cal Bank to help you to make the choice that will work for you.

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

Cal Bank Universal Motor Auto Loan

The Universal motor auto loan product is designed to enable both existing clients and non-customers access funds or top up their funds for the purchase brand new locally assembled VW Vehicles.

Permanent staff of reputable organizations who have been in employment for not less than three (3) months can access the facility.

So basically, this loan facility is for salaried workers. The loan offer is as follows:

1. Loan Offer:

  • Loan Repayment: Annuity payment method (Same amount is paid monthly)
  • Repayment period: A minimum of six (6) months and a maximum of forty-eight (48) months
  • Security:1) Charge over the vehicle to be purchased (Vehicle Registration in the Joint names of the client and the Bank).

2. Personal Guarantee of the Borrower

3. Assignment of proceeds from insurance of the vehicle;

  • Pricing: Attractive Pricing
  • Facilities are disbursed on a timely basis.
  • Flexible terms of repayment.
  • Clients shall be updated on monthly loan repayment via our CalBank Alert.

Eligibility for Cal Bank Universal Motor Auto Loan

To access the loan, the applicant must meet the following eligibility requirements;

  • The Borrower should be a salaried worker who has been in employment for not less than three (3) months.
  • Age Limit: 18 to 59 years.
  • Employment Records: Endorsement of request by the Applicant’s employer

Requirement for Cal Bank Universal Motor Auto Loan

The following documentations and details must be provided for the Universal Motor Auto Loan;

  • One Passport Picture
  • Proof of Address- Utility Bill/Tenancy Agreement
  • Personal Identification-Passport/Voter’s ID Card/Driver’s License
  • Introductory Letter from Employers
  • Current Pay Slip (3 months most recent)
  • Six months Bank statements of the borrower with the monthly salaries highlighted (for non CalBank customers).
  • Company undertaking to channel salaries through the account (CalBank Customer)
  • Company undertaking to deduct repayment at source and notify the Bank when the employee resigns, or his employment gets terminated (for non CalBank customers)
  • Pro forma Invoice from the Vendor
  • Personal Disclosure form of individual (to be provided by the Bank)
  • ID cards of referees

You can use the Cal Bank branch locator to find out the nearest branch for more enquires. However, if you are drenched in debts and don’t seem to get your way around it, start any of these debt repayment strategies to help you get out of debt faster.

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