From what age can a student obtain a loan?
Of course, a person wishing to take out a car loan must be of legal age. This condition also applies to other types of loans such as mortgage loans, vacation loans, motorcycle/scooter loans, as well as insurance and all other products offered by Crédit Populaire Européen. Anyway, the official practice of driving a car can only be done at the minimum age of 18. Therefore, this requirement regarding the student’s majority will not pose any problem.
I am a student, under what conditions can I apply for a car loan?
The various formalities to complete in order to obtain a car loan are quite simple. Unfortunately, the student cannot, on their own, be granted such a loan. Indeed, one of the primary conditions for granting a loan is that one must be regularly remunerated. Thus, student jobs are not taken into account: only permanent contracts are valid.
A car loan is typically repaid over a period of three to five years (depending, of course, on the cost of the vehicle). Without fixed income, it is therefore impossible to ensure this repayment. Parents or any other adult must act as guarantor for the commitments made for the student.
Furthermore, the young person’s parents must be domiciled either in Belgium or Luxembourg. Moreover, anyone aspiring to acquire a loan cannot be listed or reported by the Belgian National Bank. However, it should be noted that some cases may bypass this clause although, most of the time, these procedures are not the simplest.
What documents are required for the approval of a car loan?
When signing the contract certifying the approval and officialization of the car loan, the presence of the identity card as well as the residence card (for people not born in Belgium) is required. Then, the student’s parents must bring their last three pay slips as well as their last three bank statements proving the deposit of this salary into the bank account. These documents are required for any type of loan.
More specifically regarding the car loan, the order form is required for new cars. For used vehicles, the registration certificate and the registration card are mandatory, not to mention the private deed.
Example of a car loan
We invite you to use our simulator. You will notice that the APR applied to a new vehicle is lower than when it comes to a used vehicle. Why? This is simply because the lender’s guarantee is higher. Indeed, in case of resale, the new vehicle will retain more value. Vehicles less than 3 years old are also considered new vehicles.
New Vehicle
| Amount borrowed | APR | Duration | Premium | Total cost |
| €22,000 | 4.99% | 60 months | €413.95 | €24,837 |
| €30,000 | 4.99% | 60 months | €564.48 | €33,868 |
Used Vehicle over 3 years old
| Amount borrowed | APR | Duration | Premium | Total cost |
| €22,000 | 8.5% | 60 months | €448.04 | €26,882 |
| €30,000 | 8.5% | 60 months | €610.96 | €36,657 |