When buying a car with a loan, the first beneficiary of the insurance is generally specified as a bank or financial company.

Because the title of the loan vehicle is mortgaged to the bank or financial company. If the borrower fails to repay the loan as agreed, the bank or finance company has the right to dispose of the vehicle. And because the car is a special collateral, accidents of various sizes will inevitably occur while driving. In order to prevent the following problems, banks or financial companies require that the first beneficiary of the insurance be the bank.

A car loan must be signed by both husband and wife at the same time. When applying for a car loan, generally, the lender requires a valid personal identity document. Including resident ID card, household registration book, etc. If the borrower is married, please provide proof of identity of the spouse (under the same conditions, it is easier for married people to obtain loans than unmarried people). The car loan regulations are as follows: Application materials required:

(1) Valid for one person ID. Including resident ID card, household registration book, etc. If the borrower is married, the spouse’s identity certificate must be provided

(2) Proof of intention to purchase a car issued by the car dealer

(3) Household registration certificate or long-term residence certificate

(4) Proof of personal income, and proof of family income or property if necessary

(5) If the purchased vehicle is guaranteed by means other than mortgage, relevant materials for the guarantee need to be provided

(6) Proof of down payment for car purchase

(7) If the vehicle purchased with a loan is a commercial vehicle, proof that the purchased vehicle can be legally used for operation must also be provided.

Legal basis:

"Law of the People's Republic of China on Commercial Banks"

Article 42 The borrower shall repay the principal of the loan on time and interest.

If the borrower fails to repay the guaranteed loan when due, the commercial bank shall have the right to require the guarantor to repay the loan principal and interest or receive priority repayment of the collateral in accordance with the law. Real estate or equity acquired by a commercial bank due to the exercise of mortgage or pledge rights shall be disposed of within two years from the date of acquisition.

If the borrower fails to repay the credit loan when due, he shall bear the responsibility according to the contract.