Car Loans For Uber Drivers – Are you anyway interested in getting a Car Loan to become a Uber driver because maybe you don’t have the funds to purchase a car? and definitely don’t know how to go about it worry no more.
This article is all you need to know about getting a Car Loan for Uber drivers, how to apply, and the requirements.
Who is An Uber Driver?
Uber is said to be a technology platform that operates in connecting drivers and their passengers. Uber registers people who have cars that meet their needs as drivers.
They enter such people into the Uber app, and potential riders can request their service from their smartphones. So, an Uber driver is someone who registers with Uber and provides transportation for their passengers.
At this point, let’s be clear that these car loans are not only reserved for Uber drivers, but are also open to other ride-hailing platforms in Nigeria such as Bolt, inDriver and a growing number of others.
To keep things simple, we interviewed Autochek, Finance and Digital Product Manager, Okey Udo, who sheds light on some of the key areas of getting a car loan for Uber.
Why do I need a car loan for Uber driving?
As an Uber driver, the first and most important requirement you need is a car. Not just any car, but a car that meets the requirements set by Uber. Some of these requirements may include a car that is less than 10 years old, in good condition, and equipped with an efficient car engine.
So if you don’t have a car or your car doesn’t meet these requirements, you need to buy a car. Buying a good car doesn’t come cheap, so if you don’t have the money, the easiest way out is to get a car loan.
How can I apply for a Uber car loan?
You can choose from multiple rental platforms/categories. You can choose one of these categories based on your financial situation and creditworthiness.
- Secured Car Loans:
This is a collateral-based lending system. In other words, in exchange for a loan, you must use your car as collateral. This category also offers loans at low interest rates to people with poor credit ratings
However, securing a car loan can cause you to lose your car if you fail to make repayments.
- Traditional loans:
This loan is usually provided by a bank or credit union. It’s about going to those specific banks to apply for a loan directly. Their loans usually require a satisfactory credit history. However, the loan process here tends to be lengthy.
Recently, Uber Nigeria released a statement offering low-interest used car loans to potential drivers through a partnership with First Nigeria Bank and other lenders. So if you apply to First Bank of Nigeria, you will get a 24 month loan at 20% APR
- Online Loans:
As the name suggests, it is an internet-based transaction between borrowers and lenders. These online lenders usually offer you a wide range of ideal interest rates.
Applying for an online loan is easy with an instant response system. However, customer service on these platforms is often difficult to access.
To get a loan from one of these categories, all you have to do is apply.
- Personal Loan:
This category includes lenders. Personal loans allow you to get huge sums of money from potential lenders at ideal interest rates.
In most cases, lenders require detailed personal information such as permanent residence address, social security number, etc.
- Bad Credit Car Loans:
This category offers auto loans designed for people with low credit scores.
This is because, given your credit history, you may not be eligible to use other lending platforms. Their requirements are also very meager compared to normal.
However, interest rates on these loan categories are often very high. However, with an excellent repayment history, you can earn regular interest afterwards.
What are the minimum requirements for getting a car loan?
Generally speaking, these are the requirements you need if you are looking for a car loan:
- Good credit: Your credit is your financial worth. This factor is critical to your eligibility for a loan.
- Personal Information: This includes just your general information such as full name, address, email, etc.
- Debt Account: Lenders take your debt balance into account when making loans. You need a minimal debt history, as multiple debt records can affect your credit score.
- Repayment History: You must have a good repayment history. This guarantees your potential lender that you will stay true to your repayment agreement.
Can you get a loan while working for Uber?
Under the CARES Act, the Small Business Administration (SBA) created new programs to support small businesses during the COVID-19 pandemic, including those who were self-employed, gig workers, sole proprietors, or independent contractors, meaning most Uber and Lyft drivers qualified for these loans.