The car loan ranking, we will analyze the loan ratios we rarely take into account. Usually, we analyzed loans for which the car buyer had some financial resources that could serve as their own contribution. Which bank will be able to offer the most favorable form of crediting a 100% LTV liability?
The abbreviation LTV comes from the English words Loan To Value, which is a loan to the value of the collateral. Of course, this is a ratio of the loan amount to the value of the subject being credited, which is common in banking. The amount of LTV at the level of 100% is therefore synonymous with the fact that two analyzes of crediting the purchase of a new and used car presented this month will concern a loan with zero own contribution.
In January, we will analyze the case of a client – a single, whose average net monthly income is obtained under an indefinite employment contract and amounts to USD 2,700. It is also worth noting that this customer does not have other loans or credit cards, and the proposals for crediting the purchase of a car presented to him have been ranked in relation to the monthly loan installment.
When calculating its amount for a four-year loan of USD 45,000, which will be used to buy a car of any brand, the first place in our ranking was taken by Good Finance Bank. In the case of the loan he offers, the installment is USD 1002.32, the bank does not charge a commission for granting the loan, and sets the nominal interest rate at 5.99%.
The second and equivalent third and fourth places were taken by the proposals of Good Credit Bank, E-Money and Good Lender.
On the other hand, our sample borrower is also interested in the possibility of crediting 80% of the purchase of a used car. He is interested in a car manufactured in 2008, costing USD 15,000. As in the case of a loan for the purchase of a new car, in this case, the repayment period will be 4 years.
Interestingly, the order of banks is the same as for cars. So Good Finance Bank also became the leader here, as it was the only bank that offered an installment lower than USD 300. Its value, for the second in the ranking, Good Credit Bank is USD 305.72. Similarly, here also the next items belong to the twin proposals of E-Money and Good Lender, in which the installment reached USD 308.34.
The Polish Financial Supervision Authority is unfavorable to loans with an LTV ratio of 100% or higher, which strives to ensure that all credit exposures are granted for an LTV ratio of up to 80%. The question is, how long will such loans be available on the market or how much will their cost increase if we do not have sufficiently high own contribution.