In today's world, buying a car has become an integral part of many people's lives. However, when it comes to a purchase financing, the question arises: what to choose - leasing or car loan? Both options have advantages and disadvantages and the choice depends on many factors.

A car loan is a loan to buy a car, where you become the owner immediately, but a car remains pledged until the debt is repaid. The loan term is from 3 to 60 months. Advantages: complete freedom of use and no mileage restrictions. Disadvantages: high instalments and monthly payments.

Buying a car on credit is a responsible decision that requires careful analysis of banks' offers. In Kyrgyzstan, many financial institutions offer car loans on different terms. “Akchabar” analyzed the current offerings of the country's leading banks to determine where it is most profitable to obtain a car loan.

CAR LOAN BASIC PARAMETERS

When choosing a car loan, it is important to pay attention to several key parameters:
- Loan amount: the minimum and maximum amount that the bank is readily available to provide.
- Interest rate: affects the loan's total overpayment.
- Down payment: the percentage of the car's price that should be paid immediately.
- Additional conditions: special programs, benefits or restrictions.

Looking ahead, we would say that Aiyl Bank and Eldik Bank offer the most favourable car loans under state programs, which provide the most attractive conditions with the lowest interest rate. But there is a limited car choice. For the standard car loans, the most favourable interest rate is offered by Mbank. Kyrgyzkommertsbank is advantageous for those who receive income in dollars, and Bakai Bank is a good choice for a loan for a salary project or a vehicle.

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To purchase cars and commercial vehicles of domestic production from LLC 'DT Technik, '“Aiyl Bank” provides a loan of up to 3 million KGS for individuals and up to 100 million KGS for organizations for up to 60 months at 8% per annum.

The loan of up to 2 million KGS is secured by the purchased vehicle at the initial payment of 20%, and for amounts over additional property pledge worth 30% of the loan is required. Chevrolet and ISUZU models are available.

MBank also offers car loans with an annual interest rate of 20% and a maximum loan amount of up to 5 million KGS.

“Kyrgyzkommertsbank” provides competitive terms, especially for those whose income is in US dollars. The rate is 11% per annum in dollars and 22% in KGS with an initial installment of 30%.

If you want to buy an electric car, you should look at Dos-Kredobank, which offers the GREEN-ECOAVTO program with an interest rate starting at 20% per annum and a loan amount of up to 12 million KGS.

An offer from Eco-IslamicBank is available based on Islamic financing principles. The bank's markup starts at 11.7% per annum, and with a one-year financing term, it makes it especially favourable for those who plan to buy out a car quickly.

“Keremet Bank” offers car loans with an interest rate of 21% per annum and loan amount ranging from 10,000 to 2 million KGS. This is favourable for buyers of alternative transportation, as the bank lends the purchase of electric vehicles, including motorcycles and bicycles.

SPECIAL CONDITIONS AND BENEFITS

“Bakai Bank” can offer favourable conditions for payroll project owners and those wishing to purchase an electric car. For them the rate is 23%, and for third parties - 24%. At the same time, the maximum loan amount can reach 7 million KGS. It is important to note that the interest rate for the purchase of hybrid cars and electric cars is reduced by 1% additionally.

Demir Bank also offers favourable conditions for employees of companies participating in payroll projects. The interest rate is 22% per annum (under normal conditions 24%), and the down payment is 30%.

In addition to the above-mentioned banks, other banks with various terms and conditions are represented in the car loan market in Kyrgyzstan:

“Halyk Bank” provides loans between $1,000 and $100,000 with an interest rate of 22% in KGS and 14% in USD, with a 20% down payment. This may be interesting for customers who prefer large loans and have income in foreign currency.

“Bank of Asia” issues loans starting from 100,000 up to 2 million KGS with an interest rate of 23% per annum and a 30% down payment.

“Bai Tushum Bank” offers loans ranging from 100,000 to 5 million KGS at 23% annum. The down payment ranges from 20% to 30%, depending on the loan term. However, the bank does not lend for the purchase of cars older than a certain age from PRC, Uzbekistan and Russia, which is important to consider when choosing a car.

There are favourable terms for car loans in Kyrgyzstan, but there is also the option of leasing, where interest rates are often lower than for loans. Leasing allows to buy cars with lower interest costs, which makes it attractive for businesses and legal entities. Unfortunately, however, leasing is not yet available to individuals, which limits the choices for private buyers who want to use this tool to purchase vehicles.

LEASING AS AN ALTERNATIVE FOR BUSINESSES

If you are an entrepreneur, favourable leasing offers from Kyrgyz banks are available for you as well.

Leasing is a form of financial lease where the lessor acquires a car and makes it available to the lessee for a certain period for a monthly fee. Within the contract term, which usually ranges from one to five years, you pay monthly payments based on the car value, lease term and residual value.

Monthly payments on a lease are typically lower than a car loan, making it attractive to those who want to lower their monthly expenses. However, there are disadvantages too. You don't own the car until you rebuy it, which can limit your rights and freedom of action.

It is worth noting that although on March 7, 2024, the bill was adopted allowing individuals to lease vehicles, banks still do not offer such services.

Looking ahead, let us say that “Eldik Bank” offers the most favourable conditions, especially for those who plan to finance in US dollars (from 9% to 11% per annum) or use promotional rates in KGS (from 16%). “Ayil Bank” is also of interest to those looking for leasing in KGS for large amounts or wanting financing in USD.