Some might think that car loans for international students in the USA can be very tough to get. That’s certainly not the case; instead, it’s very easy for an international student to get a car loan if proper steps are followed.
While studying, students often have ambitions about getting a car. But it’s not always possible after carrying out all the expenditures of studying to afford a car. So, to afford a car, one needs to avail of a loan.
One can take a normal loan to purchase a car or take a car loan. There’s a limit for a personal loan, so if a person uses it for a car, then he/she might not be able to use it in other cases such as fees, room fees, etc. So, a car loan is more preferred.
This article will know how an international student can take a car loan in the US and other information about it.
Is it possible for an International Student to get a car loan in the USA?
Yes, international students can get a car loan in the US. International students may need transport, but due to educational expenses, they may not be able to afford a car. So, an auto loan is required for them, and some institutions are kind to them.
There are car loans for international students, which can be availed from federal student aid. Apart from the federal student aid, a student can get an auto loan if he/she is a visa holder. They’ll be able to qualify for most loans if they have a visa.
What documents are required to avail of a car loan for an international student?
If you’re an international student, then you can get a car loan which isn’t very difficult, but the process is a bit lengthier than for the local citizens. There are some pre-requisites to the process, and you’ll need to provide some documents for this. The required documents are:
- Finance Qualification Form: You need to provide info about employment, financial condition, and living in this form.
- Visa: The acceptable visas are F-1, H-1B, L-1, J-1, TN, and O-1.
- Letter of employment: It would mention your salary, benefits, employment, and terms of employment.
- Payment Documents: Copies of utility, phone bill, medical insurance, etc.
- Proof of lawful presence: Documents including green card, driver’s license, and visa need to be submitted.
Arrange all of these documents if you want to apply for a car loan as an international student.
More Information: Student Loan for International Students in Australia
Which things should be considered while taking a car loan?
There are lots of banks that offer car loans, but how would you differentiate between them? There are some factors which you should prioritize while taking a car loan. These factors are:
Rate of Interest: Try to take a loan with a low-interest rate but getting a loan at low interest, but high tenure will cost you more.
Loan Repayment Tenure: Choose the required time you need to repay according to your choice.
EMI Repayments: Check the EMI Repayment facility carefully.
Processing Fee: If the processing fee is too high, then you should opt-out of it.
Pre-closure/Foreclosure Penalty: Sometimes, you can pay the whole amount before the estimated period or take more time so check before signing whether there’s any penalty for that.
Documentation: Read the contract agreement document thoroughly.
Which banks provide car loans to international students in the USA?
For the convenience of students, some banks which provide car loans to international students in the USA are mentioned below:
- Nomad credit
- Prodigy Finance
There are very few institutions except private lenders that provide this type of loan. It’s easier to convince a private lender in this scenario.
If you follow the correct process and arrange your documents properly, then getting car loans for international students in the USA isn’t tough.
Here we’ve provided a complete guide to the process of acquiring an auto loan for international students. We hope that we’ve come to your help.
I am Tasfiya Jannat Java. I am a professional blogger, content writer and SEO Expert. I am the founder of https://www.analyticsloan.com. this blog is about Loan Analytics. I always publish Loan, Banking related articles.