Because the property right of the loan vehicle is mortgaged to the bank or financial company. If the borrower fails to repay the loan as agreed, the bank or financial company has the right to dispose of the vehicle. Because cars are special collateral, accidents will inevitably occur while driving. In order to prevent the following problems, banks or financial companies require that the first beneficiary of insurance is the bank.
The car loan must be signed by both husband and wife. Generally speaking, the lender is a valid personal identity document when handling the car loan process. Including resident identity cards, household registration books, etc. If the borrower is married, please provide proof of spouse identity (under the same conditions, married people are more likely to get loans than unmarried people). The provisions on car loan are as follows: Application materials to be provided:
(1) A valid personal identity document. Including resident identity cards, household registration books, etc. If the borrower is married, proof of spouse's identity shall be provided.
(2) A certificate of intent to buy a car issued by an automobile dealer.
(3) proof of household registration or long-term residence.
(four) personal income certificate, provide proof of family income or property when necessary.
(five) if the purchased vehicle is secured by other means than mortgage, the relevant materials of the guarantee shall be provided.
(6) Proof of down payment for car purchase
(seven) if the vehicle purchased by the loan is a commercial vehicle, it is also necessary to provide proof that the purchased vehicle can be legally used for operation.
Legal basis:
People's Republic of China (PRC) Commercial Bank Law
Article 42 The borrower shall repay the loan principal and interest on schedule.
If the borrower fails to repay the secured loan at maturity, the commercial bank has the right to require the guarantor to repay the principal and interest of the loan or give priority to the repayment of the collateral. Real estate or equity acquired by a commercial bank due to the exercise of mortgage or pledge shall be disposed of within two years from the date of acquisition.
If the borrower fails to repay the credit loan at maturity, it shall bear the responsibility in accordance with the contract.