How to get a car mortgage loan? Is it necessary to buy insurance when applying for a car loan?

Car mortgage loans have now become a common loan method and can be said to be the first choice for many borrowers. So, how to get a car mortgage loan? Is insurance necessary to apply for a car loan?

How to get a car mortgage loan?

An automobile mortgage loan is a loan obtained from a financial institution or automobile consumer loan company using the borrower's or a third party's car or a self-purchased car as collateral. The purpose of a loan using a car as collateral is mainly fast. The vehicle mortgage loan process is:

(1) The borrower submits a loan application to the lending institution. And provide the lending institution with supporting materials such as your ID card, driver's license, and car purchase contract (different lending institutions may require different materials).

(2) Lending institutions review the qualifications of lenders.

(3) The lending institution evaluates the vehicle value and determines the loan amount.

(4) The lending institution signs a loan contract with the borrower and issues the loan.

(5) The borrower deposits the vehicle driving license to the lending institution.

Among them, the required information includes:

(1) Have a stable occupation, and the applicant has the ownership of a local mortgaged vehicle.

(2) Proof of long-term residence and work in the city where business is carried out, occupation and economic income.

(3) Motor vehicle registration certificate, driving license, purchase additional tax certificate (copy), and vehicle purchase invoice.

(4) Insurance policy, vehicle and vessel tax, and certificates of imported vehicle related taxes.

(5) Original ID card, household registration booklet or other valid residence documents, and provide their copies.

(6) Other documents required by the partner institution.

Is it necessary to buy insurance when applying for a car loan?

Not required. In fact, requiring loan car insurance is to reduce the risk of bank lending. A car bought with a loan comes with the pressure of monthly repayments. If the car is damaged in a major traffic accident during the loan period, the car owner is likely to encounter greater financial risks. Correspondingly, banks' lending risks will also increase.

Therefore, it is reasonable for banks to require car insurance to be purchased with a loan. However, banks do not force car owners to buy comprehensive insurance. In addition to compulsory traffic insurance, some banks require the purchase of car damage insurance, theft insurance, third party liability insurance and personal accident insurance. Other additional insurances such as glass insurance and scratch insurance are not mandated by banks.

How to get a car mortgage loan? Is insurance necessary to apply for a car loan? Regarding how to get a car mortgage loan and whether insurance is required to apply for a car loan, the above content has given a brief introduction. I hope it can be helpful to everyone.

What are the insurance regulations for Bank of China’s personal consumption auto loan collateral?

Purchasing collateral insurance for Bank of China personal consumption auto loans:

For specific insurance application matters, please consult the Bank of China handling bank. For those who apply for loans in the form of unsecured pledge, the insurance requirements shall not be lower than those for similar secured personal consumption auto loans.

Due to differences in business in individual regions, please consult the Bank of China branch for detailed information. You can also enter the Bank of China online customer service manual service or call the Bank of China customer service hotline 95566 (for overseas, Hong Kong, Macao and Taiwan regions, please call 8610-95566) Get a consultation.

The above content is for your reference, please refer to actual business regulations.

How to buy insurance for the second year of a car mortgage loan

1. When purchasing a vehicle mortgage loan, it is required by the bank to buy full insurance. The purpose of the bank's requirement of full insurance is to minimize the risk. Once an insured vehicle has an accident and the vehicle is damaged, the first beneficiary is the bank. The bank can obtain compensation from the insurance company to avoid loan losses. Therefore, banks generally require full insurance in the first year.

2. As for whether to buy full insurance in the second year, it must be comprehensively judged based on the loan term and the repayment situation of the previous year. If you choose a two-year loan and the repayment in the previous year is timely and there is no overdue situation, the bank will also 3. Insurance can be purchased online, over the phone, or through a 4S store. You only need to submit a copy of the insurance policy to the bank.

If you borrow a car mortgage from a bank, will the insurance increase?

If you borrow a car mortgage from a bank, the insurance will go up. According to the query of relevant interest information, the interest rate of ordinary bank car loans is increased by 10% based on the bank's benchmark interest rate. In order to control risks, during the mortgage period, the borrower is required to provide a property certificate to prevent the borrower from taking the car away after buying the car.

That’s it for the introduction of vehicle loan mortgage insurance.