Auto credit is a consumer loan that can be granted by a bank or a credit institution following a request. Like any type of credit, it is subject to a contract stipulating that the borrower agrees to repay the credit following an agreement in advance, in particular for the monthly repayment.
What types of contracts are possible for a car loan?
Auto credit is offered mainly under two types of offer for the acquisition of an automobile asset from the lending institution, among others the assigned credit and the personal loan. In the first case, the credit relates only to the purchase of a vehicle.
Indeed, as the name suggests, the debtor has the right to spend the loan money only to buy a car. This is however not the case with the personal loan which allows the borrower not only to acquire a car, but also other property.
Is it possible to renounce a car loan contract?
If the borrower is a novice in the field of auto loan, it is important for him to know that an auto loan contract is governed by a few criteria. These must be taken into account by the debtor, in order to validate his choice of credit, namely his monthly contributions and his repayment arrangements. The lender, for its part, must provide the characteristics of the loan, among other things, the overall value of the credit, the overall effective rate, and the loan insurance.
The borrower must also take note of the supporting documents necessary to know if his request can be validated or not like the supporting documents of identity and domicile, the RIB or the statement of bank identity, and the duplicates of the last three monthly payments of wages.
After the acceptance of an auto loan contract, the debtor is thus engaged in the repayment of the monthly payments according to the clauses of the contract. However, the borrower has a right of withdrawal, usually 14 days, allowing him to renounce the credit if it does not suit him. The right of withdrawal is thus only valid the day after the signing of the contract and during this described period, beyond which, the debtor must finalize his car loan agreement.