Since June 2017, citizens of Uzbekistan can purchase cars of domestic production on credit. This publication presents the conditions for car loans from Joint-Stock Commercial Bank “Asaka” and Joint-Stock Commercial “Aloqabank”.
. Requirements of banks for obtaining a car loan
The list of documents for processing a loan in both banks is identical, this is:
The original passport and its photocopy;
certificate of residence;
A certificate from the employer about incomes for the last 12 months (indicating the borrower’s position, name and employer’s TIN);
Copy of INN and INPS of the borrower, code of the holder’s bank INPS;
Contract with the car dealership.
The term of consideration of documents in JSCB “Asaka” is 5 working days, in Aloqabank – up to 5 working days.
Conditions from JSCB “Asaka”
The term of car loans for individuals in this bank is 3 years. The interest rate depends on the amount of the down payment, which the borrower provides as an advance payment. In the event that the borrower is paid:
Up to 35% of the cost of the car – a rate of 18% per annum;
Up to 45% of the cost – 17% per annum;
Above 45% of the cost of the machine – 16% per annum;
Without prepayment – 23% per annum.
Payment under the loan provides a 3-month grace period, when the borrower pays only interest and does not pay the principal.
A preferential category of citizens for whom other credit conditions are provided are young families where the age of both spouses does not exceed 30 years. For them, a loan for the purchase of a domestic car is provided at 9% per annum with a mandatory condition of an advance payment of at least 25% of its value. The loan period for young families is also 3 years with a three-month grace period for the payment of principal. More information about who can be considered a member of a young family, read the link.
At the conclusion of the car loan agreement, Asaka Bank charges a one-time payment for the loan registration service in the amount of 0.5 MWR. The principal amount is paid in equal installments throughout the crediting period from the next month after the end of the grace period. Monthly interest is calculated from the balance of the main debt.
For late payment of monthly payments for each day of delay, a fine is charged – 0.1% of the principal amount + 1/3 of the amount of interest for the past period.
In the contract with the car dealership, the cost of the purchased car is indicated in US dollars, the corresponding amount is indicated in the loan agreement with the bank. The initial payment, as well as subsequent monthly payments, are made in national currency at the rate of the Central Bank on the day of payment.
After the borrower receives the car from the car dealership, insurance must be issued and provided to the bank for 3 years within 5 days. From this moment the car becomes a pledge property, a ban is imposed on its sale, donation, exchange until the loan is paid in full. All expenses related to insurance and notarization of the pledge are borne by the borrower.
Conditions of Aloqabank
Term of car loans for individuals in this bank is 4 years. The interest rate also depends on the amount of the down payment:
Up to 30% of the cost of the car – a rate of 16% per annum;
Up to 40% of the cost – 15% per annum;
Above 50% of the cost of the machine – 14% per annum.
The option of buying a car on credit without prepayment is not provided for in this bank. As well as there are no stipulated grace period of repayment and preferential interest rates for members of young families.
The transfer of funds under the contract of the borrower with the car dealership, as Alokabank assured us, may well be within 5 days from the moment of applying for a loan.
When concluding a car loan agreement with Aloqabank, a one-time payment for a loan processing service in the amount of 0.05% of the loan amount is also charged.
The principal amount is paid in equal installments during the entire crediting period from the first month after the date of the contract conclusion. Monthly interest is calculated from the balance of the main debt.
For late payment of monthly payments, a penalty is also charged. Requirements for car insurance and its registration as collateral are the same in both banks.
The requirements of car dealerships
As they explained to us, until now, car dealers gave buyers only one type of contract, not providing for the purchase of a car on credit. To date, work has also started on car loans, which is agreed with both the manufacturer and its dealers. Between the car dealership and the buyer is a bilateral agreement, which must be submitted to the bank.
According to the terms of the two capital motor shows “Rohat” and “Driver’s Village”, where we applied for a consultation, full payment under the contract should be made within 5 working days from the date of issue of the contract for the purchase of the car.
Delivery of a car purchased on credit is carried out on general terms – within 60 working days, if the selected car is not available from the dealer.
Loan payments start from the moment the loan agreement is entered into, and not from the moment the car is delivered. The timing of its delivery does not depend on the bank that issued the loan.
Recall that the company “GM Uzbekistan” earlier this month announced on its website an electronic service for customers, allowing to track the status of an application for the purchase of a car and current prices.