DistantNews
Support us
🇦🇷 Argentina /Economy & Trade

Banco Nación launches new car loans with payments starting at 292,000 pesos

From La Nación · () Spanish

Translated from Spanish and summarized by DistantNews. Read the original for the full story.

At a glance

News Official statement New plan
  • Argentina's Banco Nación will launch inflation-linked UVA loans for new and used vehicles, financing up to 100% of a vehicle's value and up to 100 million pesos per customer.
  • The loans will cover cars, pickup trucks and utility vehicles up to 10 years old, with terms of 12 to 60 months and online applications through participating dealerships.
  • Initial payments on a 10-million-peso, 60-month loan would start at 292,656 pesos for Banco Nación salary clients, although later payments will depend on index movements.

Banco Nación will add inflation-linked UVA loans to its "+Autos con BNA" vehicle financing program on Monday, September 7. The new option will finance up to 100% of a vehicle's value, with a maximum of 100 million pesos per customer and no collateral requirement.

The loans will be available for new cars, pickup trucks and utility vehicles, as well as used vehicles up to 10 years old. Customers can apply through more than 1,400 participating dealerships and 1,800 sales points. The application and loan sale process will take place online using only a national identity document.

Borrowers will be able to choose between the existing peso loan and the new UVA option. The traditional loan carries a fixed rate and a term of up to 72 months. The UVA loan will run for 12 to 60 months, with the principal adjusted by the UVA index.

For customers who receive their salaries or pensions through Banco Nación, the UVA rate will be UVA plus an annual nominal rate of 19%. For other customers, it will be UVA plus 25%. The fixed peso rates are 36% for the bank's salary and pension customers and 46% for everyone else.

The bank's example shows a lower initial payment for the UVA option. A 10-million-peso loan over 60 months would start at 292,656 pesos for a Banco Nación salary customer, compared with 424,330 pesos under the fixed-rate peso option. For other customers, the initial payments would be 343,333 pesos and 508,664 pesos, respectively.

Banco Nación said the figures are only indicative and depend on credit approval and conditions at the time of application. Later UVA payments will depend on applicable index movements because the principal is adjusted. Customers can pay an additional annual percentage point for an installment cap linked to the Salary Variation Coefficient, a mechanism the bank says offers greater predictability. UVA payments may account for up to 25% of net income, compared with 35% for eligible Banco Nación salary and pension customers using fixed-rate loans and 30% for other customers.

greater predictability over the value of the installment

· Banco NaciónThe bank used this phrase to describe the optional payment cap linked to wage growth.
About this summary

Originally published by La Nación in Spanish. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

More Stories

From Our Blog