How do I apply for car finance?
Provided that you are between the ages of 18 and 65, employed or have other sources of income, you may apply through 1Bank, at car dealers or at any of our branches.
Do I need collateral?
The collateral is the car itself. You may, however, be asked to provide additional collateral (e.g. personal guarantees or cash collateral).
What method is used to finance my car?
The hire purchase method. Once financing is approved, the car is transferred to the Bank of Cyprus and to your name. We pay the seller and you get your car immediately. With repayment, the car is transferred to your name after you pay a small fee to the Bank for the right to purchase.
When should I pay my installment?
You should not be late in paying the installments agreed and listed in your contract, so as to not incur additional costs. You can give written instructions to the Bank for your installment to be paid automatically by transfer from your current account.
What if I have difficulty in meeting my obligations for a long time?
If you are late in paying an installment, you will incur additional costs. These costs will appear in the form of an additional interest rate charge on the unpaid amount. If your financial conditions change and you cannot afford to make regular installment payments, contact your personal banker to jointly decide on a new repayment schedule.
Is there a surcharge in case of early repayment?
Your car finance is priced at a fixed or a variable rate. There is no charge of early repayment fees (compensation) .
What is my total cost of financing?
Total cost consists of:
The purchase fee, as specified in the contract
Government fees (e.g. stamps, transfer fees)
How is interest calculated?
Interest is always calculated on the daily balance. As the balance decreases over time, so do the interest charges.
Interest is calculated by multiplying the daily interest rate of the loan with its daily balance.
What is the Annual Percentage Rate (APR)?
The APR (Annual Percentage Rate) is your total cost of financing (including interest and all fees you must pay) and is expressed as an annual percentage on the financing amount.
The APR gives you a complete picture of the total cost of financing, and is a useful tool that allows you to compare different schemes –either from the Bank itself or from different banks.