Car loan for 10 years. Pros and cons of long-term car loans

When planning to purchase a car on credit, many people think not only about the amount of funds needed, but also about the loan repayment period. Basically, the car loan market is represented by products whose repayment is scheduled for 1-3 years, in the best case - for 5 years. However, for various reasons, there is a temptation to borrow funds for a longer period. Therefore, the question arises: “Is it worth taking out a car loan for 10 years?”

Given the trend towards a more stable economic situation, Russian banks are much more willing to provide access to loaned funds for longer periods. Although only fairly large players in the financial market agree to provide this type of loan, which is called “long-term,” all banks have their own interests. In addition to attracting clients, it becomes possible to replenish equity capital on favorable terms. But in order to avoid additional risks with long car loan terms, most of these offers for ordinary borrowers are not always truly attractive.

Reasons not to take out a car loan for 10 years

There are several reasons why it is necessary to carefully analyze the decision to open a loan for 10 years. And the first of them is the instability of the economy as a whole. In the next crisis, which many experts predict, workers with average earnings will be the first to suffer. After all, as a rule, it is this category of citizens who falls under layoffs.

The second reason is the uncomfortable conditions of long-term car loans. The overpayment on such a loan can range from 100 to 500% of the initial cost of the car, since the real (effective) interest rate can reach 50 -70% when advertised at 30%. The third reason not to take out a loan for such a long period is the reduction in price of the car itself. the “relevance” of the model itself.

Profitable car loans for 10 years

However, it is profitable to take out a car loan for 10 years for representatives of small and medium-sized businesses with a stable income. Firstly, for this category of borrowers, banks are developing special offers, the rate on which can be significantly reduced. As a result, overpayments for this type of lending will be minimal. At the same time, the company does not sacrifice working capital, using the equipment to the fullest. For example, a target program from RosselkhozBank is issued for the purchase of agricultural machinery and specialized equipment. Clients can apply for a loan for both new and used vehicles.

The “10-year car loan” project was invented quite recently with the goal of issuing loans to local residents with different incomes for a longer period. Long-term installment plans make it possible to pay off the debt in small payments, and are available to mid-level individuals. This makes it possible to purchase a good car without unnecessary expenses.

Potential clients receive the best recommendations by email, the first line of which is made up of the most advanced banks today - real experts in their field who are not afraid to take risks. Email helps conditional customers choose the optimal combination of price and quality.

Which banks issue car loans for 10 years?

For many financial institutions, issuing a car loan for 10 years is very unprofitable. The reason for this is a significant overpayment on the loan for such a long period and a high risk due to the unstable economic situation in the Russian Federation. Moreover, registration requires a large number of supporting documents, collecting various certificates, guarantors, asking for an excellent credit history, checking the full performance of the borrower, which not every client can provide. In addition to everything, you must take out an MTPL insurance policy.

Today, similar projects are offered by the following branches:

AiMoney Bank issues such a car loan for 10 years for new and used vehicles, Russian and imported, in the amount of up to 3 million with a tariff rate of 16-25%;
Alfa Bank offers its “Alfa Leasing” program for an amount of up to 7 million rubles at 16% per annum, the minimum contribution is only 5%;
VTB24 offers “Cadillac light” with only 2 documents. Amount - 2,800,000 rubles at 19.5 - 20.5%, down payment - 20%.

Car loan terms

To get a “car loan for 10 years,” you need to collect a basic list of documents, which includes: an identity card, a salary certificate, reliable information about the employer, and a completed borrower application form. The smallest amount is considered to be 150 thousand rubles, and the maximum loan amount is not limited.

Basically, you can get a car loan for 10 years without a down payment, but many clients prefer to pay 10%. In some branches you will still have to pay it and this amount does not exceed 20% of the cost of the car.

Requirements for borrowers

The borrower must provide a specific list of documents. To the above documents you must add a copy of the workbook, a document from the area of activity, a copy and original of the army ID of male representatives, etc. The terms of the car loan imply the issuance of a specific amount for a period of no more than 10 years. The price of a vehicle purchased in installments must not exceed the economic capabilities of the buyer. In addition to everything provided, the issuance of an insurance certificate is considered an integral attribute. Only adults and citizens of the Russian Federation have the right to apply for a corresponding loan.

How to get a car loan for 10 years?

Of course, it is quite difficult to get a car loan for so many years to purchase a vehicle, and Russian banks offer very interesting offers. Similar consumer projects still exist and are issued according to the following scheme:

you write a questionnaire, indicate reliable information about yourself;
are waiting for review;
in a positive scenario, within 7 working days you can receive a certain amount.

Money is issued in cash or transferred to a card, which can be spent at your own discretion and there is no need to report to the lender. Difficulties arise if a loan to purchase a car is issued in the absence of certificates and without an initial deposit. The bank should monitor your economic situation, especially if the future partnership will last ten years. Car loans that are issued for many years are highly popular because the user is interested in receiving funds and paying interest in small amounts.

Pros and cons of long-term car loans

It is cost-effective to issue a car loan for 10 years to the middle-level population with a small, mediocre income and stable income. For this group of borrowers, banks have established specialized regulations, according to which the amount of payments is significantly reduced.

Applying for a car loan within 10 years occurs quite quickly. Here the question arises: why look for offers from other banks and collect so many papers if this can be done in just 1 day on very favorable terms. It is also more likely that the bank will approve an application for such a long loan period.

Long-term loans allow the payer to provide a comfortable debt repayment schedule and an affordable monthly payment amount. You can take out a large loan for 10 years from many large Russian banks.

Is it possible to get a loan for ten years?

A consumer loan for 10 years can be obtained without collateral or guarantors, and in some cases without income certificates. Russian banks are ready to approve amounts from 500 thousand rubles, subject to the provision of collateral - real estate or a car.

Requirements for the borrower

A cash loan for 10 years can be obtained by:

adult citizens of the Russian Federation,
appeals registered in the region
having a stable income, confirmed by official documents.

To complete the transaction, you must provide a passport, original or copy of your work book and a certificate of income in the established form.

Which banks give loans for 10 years?

For a long term of 10 years or more, you can get an amount from 10,000 to 30,000,000 rubles in Russian banks:

In such banks as:

			Documentation
Absolut Bank		without guarantors	Russian passport and 4 documents (certificate 2-NDFL, etc.)
Rosselkhozbank		without guarantors	Russian passport and 5 documents (certificate 2-NDFL, etc.)
Bank Acceptance	up to 600 thousand	without guarantors	Russian passport and 3 documents (certificate 2-NDFL, etc.)
Post Bank			Russian passport and 2 documents
Credit Bank of Moscow		without guarantors and income certificate	Russian passport and application

A loan for 10 years at a low interest rate can be taken out for education, secured by real estate or a car.

How to get a loan for 10 years?

Enter the basic loan parameters into the search form. Using advanced settings, set additional conditions.
Study the offers found by comparing the interest rate, terms and requirements. Having chosen the best option for yourself, click on the “Submit Application” button.
The system will automatically redirect you to a page with an online application form, in which you must enter accurate data and send it to the potential lender.
After reviewing the received data, you will be invited to the office with a full set of documents.
After analyzing the submitted documents, the lender will decide whether to approve the loan or refuse it.

Using the loan search service, in a matter of minutes you can familiarize yourself with dozens of offers from banks issuing consumer loans for 10 years and choose the most profitable program for yourself.

Methods of obtaining and repaying a loan

After the transaction is approved, the money is issued in cash or transferred to the client’s card or account. You can make monthly payments in any way convenient for the payer:

through mobile banking or online banking;
in payment terminals and ATMs, including partner banks;
at a bank branch through a cash desk;
postal transfer;
by bank transfer.

Well-known banks with a developed network of branches are ready to offer clients a large selection of debt repayment methods.

If you have a bad credit history and banks refuse you a loan, look at the options offered by microfinance organizations. You can get a loan faster and with less paperwork

Reading time: 6 minutes

A 10-year car loan is a special program. The standard terms of a loan for the purchase of a car in most banks are limited to the duration of the agreement, on average, 5-7 years. Finding such a long-term target program for purchasing a car is very difficult. Often, an alternative to this can be non-targeted consumer lending - both without collateral and with guarantors or collateral. This loan does not provide for bank control over the use of money, and its validity period can be up to 15 years.

Where can I get a loan to buy a car for 10 years?

Among the current banking offers, you can only take out a targeted loan for a car for 10 years at NOKSSBank. In this financial institution you can get a car loan for the purchase of both a new and used car. However, only residents of the Volgograd or Moscow region who purchase vehicles at car dealerships in Volgograd and Volzhsky will be able to take advantage of this offer. The rest of those wishing to take out a loan for such a long period will have to look for other financing programs.

A non-targeted bank loan may be ideal for purchasing a car. In this case, the client receives money on a plastic card or in cash through the cash register, after which he can spend it on anything. It should be noted that most of these programs require the presence of guarantors or collateral, or both, and this significantly complicates the registration process.

You can take out a non-targeted consumer loan for 10 years without guarantors or collateral at the Moscow Credit Bank. Here the maximum loan term is 15 years. Only participants in salary projects or state employees can borrow money from Rus Bank to buy a car for a period of 10 years. At Surgutneftegazbank, you can get a loan for 10 years without collateral or guarantors using two programs at once - “What you need” or “Ugra Gold”.

As for non-targeted consumer loans secured by real estate, you can take out money to buy a car for a period of 10 years under these programs in almost every financial institution.

Standard conditions for car loans for a period of 10 years

The size of the monthly payment, the method of registration, the list of documents, as well as other parameters of the loan program largely depend on the loan product with which the client decided to purchase a car: a targeted car loan or a non-targeted consumer loan.

What are the requirements for borrowers?

In addition, bank employees may require a marriage certificate, SNILS, TIN, driver’s license, documents confirming ownership of property, etc. from the future borrower.

When applying for a loan with a minimum package of documents, an individual will need a passport and one of the documents confirming his identity and indirectly indicating his income. We are talking about a foreign passport with marks about crossing the border, a driver’s license, a registration certificate for a car, a compulsory health insurance policy, etc.

What loan amount can you expect?

The maximum loan amount is directly influenced by factors such as:

level of solvency of the borrower;
market value of the collateral.

The latter option does not apply to unsecured lending programs.

Depending on the size of the monthly income, the lending bank determines the maximum amount the borrower can service without significant damage to himself and his family.

The client will not be able to get a loan if his salary is less than the monthly loan payment.

However, if a potential borrower receives income from unofficial sources and is confident that he will be able to timely fulfill his obligations to the bank, he can try to attract solvent co-borrowers to the transaction. With their help, it will be possible to increase the loan amount, but at the same time they must meet all the requirements of the bank.

The market value of the collateral also affects the loan amount. Typically, the amount of financing for a car purchase is regulated by a down payment, which can be either zero or 10 percent or more of the cost of the car. But this is the case if a targeted loan is issued for the purchase of a car, which provides for the drawing up of a purchase and sale agreement.

If the client simply receives cash, then the size of the loan depends on the market value of the collateral. Typically banks are willing to lend up to 80% of the price of the collateral property. Although here a lot depends on the type of collateral. For example, they will give less for a plot of land than for an apartment in a new building.

At what interest rates can you get a car loan for 10 years?

The payment for both a targeted loan for the purchase of a car and a non-targeted consumer loan depends on many parameters:

categories of clients - usually rates are lower for participants in salary projects, as well as other privileged categories of clients, which may be state employees, employees of bank partner companies, regular borrowers, etc.;
availability of collateral - interest rates are lower if an individual provides real estate as collateral. This is due to a reduction in the risk level of the transaction. Typically, loans secured by real estate are cheaper than unsecured loans. In addition, if there are guarantors, the payment for obligations is higher, but less than when the loan is issued without any collateral at all;
completeness of the package of documents - if the client wants to apply for a loan using a passport and another document of his choice, he should expect a higher rate than if he brings a full package of documents. Without documentary proof of income and employment, the risk of an incorrect assessment of solvency and the occurrence of delinquency in the future increases.

How to get a car loan

Before starting to collect documents for a loan and search for a potential lender, the future borrower should realistically assess his financial potential, in particular, whether he will be able to fulfill his obligations in a timely manner. To do this, you can use an online calculator on the bank’s website or any other on the Internet. Please note that the calculations received are approximate and may differ slightly from the figures that a bank employee will provide during a personal meeting.

If the monthly payment is adequate for servicing, then you can apply for a loan. You can do this in two ways:

directly at the bank branch;
by filling out an online form on the Internet.

The advantage of the latter option is that the client will be able to find out in detail all the terms of the loan and receive preliminary approval without visiting the bank.

In general, the stages of applying for a loan are standard:

Submission of a complete package of documents.
Analysis of bank documents and decision-making on lending.
Conclusion of a loan agreement and registration of collateral.

Conditions of a car loan for 10 years without a down payment at NOKSSbank

NOXSBank is one of the few Russian banks where you can take out a car loan for 10 years. Loans for the purchase of both new and used cars for such a long period are issued here on the following conditions:

the amount of financing depends on the client’s solvency and ranges from 100 thousand to 10 million rubles;
The rate for zero advance is 16% per annum. However, if you wish and are able to pay part of the cost of the car with your own money, it can be reduced to 12% per annum.

Both employees and private entrepreneurs can apply for a loan. The main thing is that they meet the bank's requirements. And they are standard at NOXSBank:

age - from 21 years on the date of application and not older than 55 years for women and 60 years for men at the end of the loan period;
permanent residence and registration in the region where the bank has branches, namely in the Volgograd and Moscow regions;
work experience at the current place of work - at least six months.

Why are car loan applications rejected?

Banks are interested in cooperation with solvent clients who will be able to fulfill their obligations in a timely manner and will not allow delays to occur. Therefore, in order to immediately weed out potential problem customers, lenders set criteria that their future borrowers must meet.

If, when applying for a car loan, an individual has one of the following circumstances, the chances of getting approval are sharply reduced:

presence of overdue debt and damaged credit reputation;
if the new loan significantly increases the loan burden;
the client does not meet the approved parameters;
the potential borrower cannot provide a complete package of documents.

Finally

Unfortunately, today it is not easy to find a loan program for purchasing a car for a period of 10 years. Among the existing offers on the market, only one, at NOXSBank, provides the opportunity to take out a targeted car loan for such a long period.

However, another type of credit program can come to the rescue - a non-targeted consumer cash loan. Under the terms of this product, the borrower receives money that can be spent on anything, including purchasing a car. Moreover, almost every bank has non-targeted consumer loans secured by real estate. But to register them, you must have property that can be provided to a financial institution as collateral. Therefore, it is much easier for a client to take out a loan with guarantors or without collateral, however, such programs are less common and the interest rates on them are higher.

What is a car loan, the main nuances: Video

To buy a new car you have to save up for several years. Buying a used car also cannot be called a cheap deal, and for some Russians even this option is still a dream. Due to the fact that car loans in Moscow allow you to purchase any car without exception, the ranks of capital car enthusiasts are replenished every year.

What car loans are offered in Moscow?

Let's start with the fact that you can buy a car on credit in Moscow directly at a car dealership. As a rule, car dealerships cooperate with 2-4 banks, whose representatives accept and review applications on their territory. An application submitted in this way is considered under general conditions.

new car loan;
funds for a used car;
program for purchasing a specific car brand;
new car on credit in Moscow on preferential terms with government subsidies;
loans for the purchase of Russian-made cars.

Car loan in Moscow - conditions and main parameters

In Russia, there have long been established requirements for individuals applying for a loan. They vary slightly and may differ in different organizations, but in general Russian banks adhere to this list:

age: 18+;
Russian citizenship;
registration: permanent;
experience: from 4 months;
solvency;

In 2019, not all banks establish a requirement for registration in the area of their location; registration in any region is allowed. The same applies to proof of income. Certificates in the form of a bank or employer, and pension account statements are accepted for consideration.

You can take out a car on credit in Moscow under these conditions:

down payment 10-50% of the cost of the car or without a down payment;
interest rate from 14.00%;
for 5 years;
without income certificate;
secured by the purchased vehicle and/or other property;
with bad credit history subject to collateral.

How to find a loan on the site?

All you need to choose a loan here is to know the amount and loan period. In addition, the car loan calculator in Moscow makes it possible (at the user’s request) to search for a loan, taking into account additional conditions.