State programs for preferential car loans in 2021

For many people, buying their first vehicle is a daunting task. It happens that there is not enough money for the down payment or a person is refused due to age. Sometimes banks are ready to issue money at high interest rates for a short period, without the possibility of using discounts. It is because of all this that people often put off buying their first car indefinitely.

In order to avoid such situations, an initiative has been developed that allows you to easily purchase your first car at a discount and at a reduced rate. Back in the summer of 2021, the first car program began operating in the Russian Federation. With its help, the state decided to support the domestic auto industry and motivate citizens to buy new cars. As part of the program, it was planned to sell more than 50,000 cars. Society responded positively to this initiative, so long before the end of 2017, all the cars were sold out. Having seen the positive dynamics and interest of people, the authorities decided to extend the state program for 2021, but with some changes.

How does the program work and who benefits from it?

There are different programs for car enthusiasts in Russia, including trade-in and a recycling program. However, if at the very beginning they were extremely popular, by 2021 the demand for them has dropped significantly. This is due to the fact that most car owners have already taken advantage of the offer, and the program has simply exhausted itself. In this regard, it became necessary to look for new solutions to increase the demand for domestically produced machines. So, in 2021, a completely unique idea emerged that could solve many economic problems.

Under the terms of the program, every citizen of the Russian Federation has the opportunity to buy a car on credit at a discount. For these purposes, more than 7 billion rubles were allocated from the budget.

This initiative is beneficial to motorists, banks, automakers and the state. Let's look at the main advantages of buying your first car on preferential terms.

For the state:

Stimulating the country's economy;
Renewal of citizens' vehicle fleet;
Development of car services servicing domestic cars;
Support for the banking sector.

For banks:

Increase in loan portfolio;
Possibility of implementing additional services.

For automakers:

Increasing the pace of car production;
Increased sales.

Since buying a car is a very expensive undertaking, especially if it is your first car, the benefit for car enthusiasts is obvious - for the second year in a row, young people have been getting a unique opportunity to purchase a car on credit, and at an impressive discount.

State program "Family car"

The Family Car program involves providing preferential loans for the purchase of a vehicle to families with minor children.

Participants in the Family Car state program will be able to count on a discount of 10-25% on the cost of the vehicle in 2021. The maximum percentage is provided to residents of the Far East. Russians living in other regions can count on a 10 percent discount (this part of the amount for the buyer will be contributed by the state). At the same time, the additional payment made by the state will not be taken into account when calculating personal income tax in 2021.

In 2021, the state will allocate 8.87 billion rubles for preferential car loans, and 3.84 billion rubles for preferential leasing. The preferential leasing program allows you to purchase any vehicles necessary for a business whose production is sufficiently localized in Russia.

Conditions for participation in the program for borrowers

To participate in the program, you must meet certain requirements. At first it was planned that one of the main conditions for participation would be age. According to the developers, the program is aimed at young people under the age of 30. But later this decision was revised, and the conditions for participation were softened.

Selection criteria for candidates for the first car program:

The vehicle to be registered must be the first. If at one time the borrower already owned a car, then he cannot qualify for participation in the program, even if at the moment there is no car registered to the borrower;
The borrower must have a valid driver's license category "B";
The program is valid only for Russian citizens;
The borrower must be employed and must prove his income.

The accuracy of the information provided is checked by the credit institution issuing funds for the purchase of a car and the traffic police. The bank’s security service will also check the borrower’s credit history through the BKI.

If, in all respects, a person is suitable for participation in the state program, then it should be taken into account that during the execution of the transaction, in addition to the obvious financial obligations, he will have to sign an agreement that in 2021 he will no longer purchase any vehicles on credit. The same condition was mandatory in 2021.

You can only take part in the first car promotion in 2021 once.

Terms and conditions of the Family Car 2020 program

The state program “Family Car” was developed to increase the availability of purchasing cars for families with children, as well as to support the domestic market of manufacturers.

The essence of the program is as follows: the bank gives the borrower a discount on the cost of the car, it is added to the down payment on the car loan, and the state subsequently compensates for this amount. The subsidy is added specifically to the down payment on the loan: the borrower does not spend this money, it is counted when concluding the loan agreement. In those banks where the down payment on a car loan is 10%, it can be repaid in full with this subsidy.

According to the terms of the program, a discount on the cost of the car is provided in the following amount:

25% - for residents of the Far Eastern region;
10% - for all other regions.

Example

The family decided to buy a car worth 700 thousand rubles. They take out a car loan from a bank for 630 thousand rubles, and the remaining 70 thousand (10% of the cost of the car) are counted towards the down payment, but it is repaid by the state.

Borrowers who simultaneously meet the following conditions can take part in the state program:

I have Russian citizenship.
You have a valid driver's license, that is, a driver's license.
There is a minor child in the family, including under guardianship or guardianship, or this is the first car in the borrower’s life.
There are no car loans for the purchase of a new car issued in 2019-2020 (banks check this information against your credit history).
The family lives in the region in which banks provide such a loan.

Citizens who have sold their vehicle over 6 years old to a car dealer to pay part of the down payment (Trade-In) will be able to count on preferential car loans. For example, when purchasing a Lada car on credit, you can receive an additional discount of 10% of the cost of a new car when you trade-in an old car older than 6 years, which the client has owned for at least 1 year. Employees of medical organizations of the state healthcare system can receive the same benefits when purchasing a new Lada car.

Terms of action

If you meet all the criteria, then you may well qualify for participation in the promotion, but first you should find out about all the additional conditions of the state program and the nuances of applying for a loan.

The first car promotion includes the following:

You can become a participant in the program only when purchasing a car on credit;
The bank issues a loan for a period of no more than 3 years;
All cars purchased on credit under the state program are given a 10% discount;
If, when drawing up a loan agreement, the borrower is not ready to make a down payment, then he is not given a 10% discount, but the reduced rate remains in any case;
To receive a guaranteed discount, the initial minimum payment must be 10% of the total cost of the purchased vehicle;
The maximum price of a purchased car in 2021 cannot exceed 1.5 million rubles, but in 2021 this amount was less;
The loan rate for participants in the state program cannot exceed 11.3% per annum. But, at the discretion of the bank, it may well be reduced;
The loan amount under the terms of the agreement may include not only the cost of the car, but also additional services, such as insurance. The main thing is that in the end the loan does not exceed the program limit established by the state.

Lending conditions for the purchase of a first car for Russian citizens in 2021

When you sign a loan agreement, the car remains guaranteed by the bank. But even despite this, the loan rate remains quite high - about 15%. It can be reduced under certain circumstances - these include the state program of assistance when buying your first car. And the tariff in this case is reduced for the use of funds to 9.5% per year for 2021. Sometimes the percentage goes down. For example, in 2021 it amounted to 6.7% annually.

Repayment under a loan agreement is usually made in annuity payments, that is, equal payments for each regular period. There is the possibility of early repayment before the deadline for the return of funds without imposing penalties or paying additional fees.

When applying for a loan to purchase a car under the state program, the following conditions are prescribed:

The car remains the property of the banking institution until the debt is fully repaid.	This is indicated in the vehicle purchase document.	Information about the encumbrance also remains in the traffic police database in order to prevent the car from being stolen or sold before the debt is paid.
Money is given out only for the purchase of new cars.	It is allowed to register a vehicle with a production date of approximately 1 year.	For loans issued in 2021, it is allowed to purchase cars from 2016-2018.
A down payment is required.	The amount should be no more than 15% of the total cost of the car.	Money is contributed for the down payment from the borrower’s own funds.
Reaching the minimum age of the borrower.	Is at least 21 years old.	At the time of execution of the loan agreement.
Payment for an insurance policy.	It is necessary to conclude an agreement for insurance services for cars.	A CASCO policy is issued for the risks provided by the bank.
Minimum work experience.	Is at least 6 months under an employment contract.	It is possible to include experience both at different places of work and at the last enterprise.
Documents to confirm the amount of income and its regularity.	These include a copy of the work record book and employment contract.	In practice, it is enough to provide a certificate from the accounting department at your place of work indicating your earnings for each month over the last 6 months.
A 10% discount is provided for special programs.	These include the government subsidy programs “First Car” and “Family Car”.	To receive benefits, it is enough to provide additional documents confirming your marital status.

The interest rate on a car loan is the difference between the interest rate assigned by the bank and the subsidy provided by the state. The budget reimburses only interest on a loan agreement concluded for a certain period for the purchase of a car.

Important: the purchase of a car is carried out under the state program only when purchasing a car at official representative offices of dealers of the vehicle brand.

Conditions for the vehicle

Not all cars qualify for the first car program, but the list is quite wide. It includes almost all the most popular brands, but many are sold in a minimal configuration, since when purchasing cars with a full configuration, the loan amount may exceed the established limits, which is contrary to the conditions of the state program.

The list of cars offered includes:

Cars of the Lada brand. The range of vehicles offered under the program is limited. For purchase you can consider Vesta, Granta, Kalina, Priora, Largus, Samara;
UAZ and ZAZ cars of all models and configurations.

Since the program is aimed more at young people, and they mostly choose foreign cars, foreign cars were also included in the list. The main condition is that the assembly of foreign-made vehicles be carried out on the territory of the Russian Federation. The following conditions fell under this condition:

Chevrolet cars. Niva, Cobalt, Aveo models are offered in all trim levels. The Cruze is available in select trim levels only.
Citroen cars. The C-Elysee model is available in any configuration, the C4 is only available in certain trim levels.
KIA Rio cars can be obtained on credit in any available configuration, the Ceed model - in some versions.
The design of Dewoo Matiz and Nexia cars is available in any configuration.
The Ford Focus model is a participant in the program, but in limited variations.
Skoda cars of the Fabia model are also offered in any configuration and Octavia – in a limited version.
Hyundai Solaris can be purchased in any configuration.
Nissan Almera and Note can be equipped with any selected configuration, but Tiida can be equipped only with some.
The Peugeot 301 is also included in the program in any configuration, and the 408 model is only available in some of them.
Renault Logan and Sandero were available in any configuration, and Duster – in a limited configuration.
The list includes Mitsubishi Lancer, Toyota Corolla, Opel Astra and Mazda 3, but due to the high cost of these cars, only limited equipment is allowed.

As you can see, at the moment the program registry includes a wide range of different car brands. But if during 2021 there is a significant reduction in vehicle prices, then we can assume that the first car program in 2021 will significantly expand the proposed list.

Banks participating in the program

Since the program is built around car loans, cooperation with banks is the main stage when buying a car. And the most difficult for the consumer, because:

it is necessary to collect a package of documents and often banks add their own requirements to it;
you need to know how banks evaluate you as a lender, otherwise you may not get a loan.

In addition, you need to know that not all banks take part in the program, but only those that have been identified by the Ministry of Industry and Trade.

Banks working under the program

Not all Russian banks operate under the new program, but those that have posted participation information on their official websites offer the following conditions:

The minimum rate, from VTB 24, is 5.5%, while the down payment on the first car can be 0 rubles;
VOLKSWAGEN BANK RUS issues money at 6.5% and the borrower will have to make a first payment equal to 25% of the total cost of the car;
Car loans in Uralsib are available at a rate of 8%, but their conditions do not provide for the first payment;
RNKB issues loans at 8.3% without a down payment;
Rusfinance Bank offers a rate of 6.7% and no down payment;
Unicredit is ready to sign a loan agreement at a rate of 6.5%, but with a down payment of 10%.

In addition to these banks, Rosbank, Bank of Moscow and Sberbank are participants in the program, but there is no information on the conditions of the loan program on their official websites.

The exact rate, term and loan amount under the program depend on various factors:

Bank policies;
The presence or absence of a down payment;
Borrower's credit history;
Package of provided documents.

Which banks can you get a subsidy from?

You can get a loan to buy a family car in one of 22 Russian banks. Among them:

Setelem Bank;
VTB 24;
Volkswagen Bank RUS;
MS Bank RUS;
Bank Uralsib;
Radiotechbank;
TatSotsBank;
Sovcombank;
Sarovbusinessbank;
Energobank;
RN Bank;
PSA Bank Finance Rus;
Rusfinance Bank;
Plus Bank;
Gazbank;
Soyuz Bank;
Bank "Snezhinsky";
Toyota Bank;
Expobank;
RNKB;
Bank "Saint-Petersburg";
UniCredit Bank.

Initially, the loan rate varied from 5.7 to 8.7%. This year it could reach 17%. The size of the bet is affected by the amount of the down payment. On average, the statistics could be as follows:

with a down payment of 20-30% - 13.5%;
with a down payment of 30-50% - 12.5%;
with a down payment of 50% - 11.5%.

Some banks reduce the rate by 1% if the borrower provides an income certificate or tax return. When applying for a loan with state support, bonuses provided by car dealers are retained. It could be:

discount provided to the buyer when handing over the car for trade-in;
direct discount or gifts from a partner bank, for example, winter tires;
discount on programs that operate at the car dealership (for example, KIA Finance).

According to the terms of the Family Car program, there is one subsidy per person. At the same time, each parent can take out a preferential car loan and buy a car for themselves.

You can choose a bank yourself or through the seller. In the first case, you can compare offers from credit institutions using an online calculator and choose the most advantageous offer. In the second, you will have to be content with the list of partners with whom dealers interact.

Also read: 7 “surprises” that will prevent you from registering a car after purchase

Registration algorithm and package of necessary documents

If you are interested in the first car program and you plan to make a purchase within a year, then you must:

Select your first vehicle from the showroom;
Decide on a credit institution;
Provide the credit institution with the required package of documents;
Wait for the official result (approval or refusal);
If the decision is positive, go to the bank to sign the loan agreement.

You can apply for participation not only at a bank branch, but also on the institution’s website or at a car dealership.

Let us dwell in more detail on the provision of a package of documents. Banks change this list every year at their discretion, adding or removing any documents from it. Here is a list of the main documents that must be provided:

A completed application form according to the bank;
Passport;
Driver's license;
TIN;
Certificate from the traffic police confirming the absence of ownership of the vehicle;
Confirmation of solvency (certificate of income);
Signed agreement with the car dealership.

When drawing up a loan agreement, there are some aspects to consider:

During the term of the loan agreement, the vehicle will be pledged to the bank, which means it cannot be sold without the consent of the lender;
The credit institution issues a loan at their current interest rate, but 6.7% of them are repaid under the program from the budget allocated by the state;
The validity period of the loan agreement cannot exceed 3 years, and at the request of the borrower it can be reduced;
If the limit allows, then additional insurance services may be included in the loan agreement;
The borrower can count on a 10% discount only if he makes the minimum down payment required by the bank;
The borrower receives a significant benefit from purchasing the first vehicle under the state program not only because of the 10% discount, but also because of the reduced rate.

Required documents

passport of a citizen of the Russian Federation
driver's license
a written commitment not to enter into other loan agreements for the purchase of a car in 2021 (signed by the spouse)
copies of birth certificates or passports for two or more minor children
other documents required for issuing any loan (SNILS, INN, 2-NDFL certificates, etc.)

Although the state program applies to the entire family, the borrower can be one of the adult parents. To apply for a preferential car loan, you need to provide this list of documents.

If a family applies for a subsidy with full payment for the car, similar documents are submitted to an accredited car dealership.

conclusions

The government's first car program was launched last year, but due to its high popularity, it was extended to 2021. Its main goal is to help citizens purchase their first car and stimulate the country’s economy. Here are the main points of the First Car program:

Every citizen can purchase a car at a discount and at a reduced rate, subject to the requirements of the program;
The term of the loan agreement can be reduced, but it is not possible to take out a loan for more than 3 years;
The year of birth of the borrower does not matter, the main thing is that it is the first vehicle registered as a property in its entire life;
If, after a year, the first car program remains as popular, then we can hope for continued government support.

Leading credit institutions participate in the state program, the list of which is updated from year to year. Typically, their websites contain detailed information about the conditions for participating in the first car promotion. If information about the program is not available on the website, then you can get full advice on loan terms at the branches of banks participating in the program.