Car Loan Requirements in Indonesia for Fast Approval
Want faster approval? See the car loan requirements in Indonesia for professionals and the self-employed, from down payment and ID to supporting documents.
A car loan is the most practical option for people who are short on funds but need a vehicle they cannot put off buying. Even though you have to pay monthly installments, buying a car on credit can solve many problems, especially the need for everyday transportation.
Whether an application is approved depends on how well you meet the requirements set by the financing company or dealer. The main requirements are usually a down payment (DP) and several documents.
So, what do you need to meet for your car loan application to be approved?
Requirements for a motor vehicle loan are actually divided into several categories: separate ones for employees, companies, professionals and the self-employed. To keep things simple, we will use the requirements for professionals and the self-employed as an example.
The first requirement in this category is a Kartu Tanda Penduduk (KTP), the national ID card, as the official document showing Indonesian citizenship.
Applicants must be at least 21 years old, or younger than 21 if they are married or have been married. They must also have a business that has been running for at least 2 to 3 years, although each leasing company (financing institution) usually applies its own policy on this point.
Married applicants must submit a photocopy of their KTP along with a photocopy of their spouse's KTP. A photocopy of the family card or marriage certificate must also be attached.
To prove that the applicant actually lives in Indonesia, a photocopy of the tax number card (NPWP) is usually requested, along with proof of payment such as utility bills (electricity, water utility and telephone) or proof of payment of land and building tax (PBB).
Business receipts or a photocopy of a bank statement (a print-out of your savings book) are also usually needed to improve your chances of approval. The bank statement gives a picture of your finances (a summary of your income), which the lender considers when deciding on the loan.
The size of the monthly installment depends on the dealer's policy. Generally, the larger the DP, the lower the installment. You also need a professional and trustworthy leasing company. One example is CSULFinance, which offers car financing with easy requirements and low installments.
In principle, applying for a car loan is very easy as long as all the requirements are met. It also needs the support of the right financing company, one that is professional and has a good track record.
READ ALSO: How to Get an Affordable Car Loan for Your Family
