Can car loans be extended during the epidemic? What should I do if I can't pay back my car loans during the epidemic?

We all know that car loans are quite common, and many young people will take out loans to buy cars. Car loans require regular repayments. Due to the impact of the new coronavirus, many people cannot go to work and have no salary to repay the loan. So can car loans be extended during the epidemic? Let's take a closer look!

Can car loans be extended during the epidemic?

During the epidemic, car loans can apply for deferred repayments. Banks and insurance institutions should further increase support for epidemic areas, reduce or waive service fees, simplify business processes, and open up fast channels. For people who have temporarily lost their income sources due to the epidemic, appropriate credit policies should be given, and flexible adjustments should be made to personal loan repayment arrangements such as housing mortgages and credit cards, and repayment deadlines should be reasonably postponed.

The general meaning is to encourage medical staff, government workers participating in epidemic prevention and control, and people who have temporarily lost their source of income due to the epidemic to reasonably postpone the repayment period of personal loans and credit card overdrafts that are overdue during the epidemic. It will not be regarded as a default for the time being and will not be included in the list of default customers.

What to do if you can't pay your car loan during the epidemic

First of all, we need to clarify which bank is involved. For example, commercial banks such as China Merchants Bank and CITIC Bank can delay repayment by communicating with customer service, explaining the situation clearly, and the longest delay is one month. Banks such as China Construction Bank and Industrial and Commercial Bank of China have stricter management. However, you can apply for an extension through manual customer service. The current situation is quite special, so delaying repayment should be possible.

Moreover, the central bank has just issued the "Notice on Further Strengthening Financial Support for the Prevention and Control of the Novel Coronavirus Pneumonia Epidemic", which clearly states that if the repayment is overdue due to the impact of the epidemic, the bank should grant an extension for repayment. In addition, if the repayment is overdue due to the impact of the epidemic, it will not affect the individual's credit.

How to apply for a car loan extension

1. First, check whether the bank you apply for a car loan from supports deferred repayment of car loans (usually it does);

2. Check the bank’s official website or WeChat official account for the specific loan extension application conditions of the bank, such as:

(1) Bank of China

For medical staff, government workers, confirmed patients, suspected patients and their spouses who participated in the epidemic prevention and control, if their personal loans and credit card overdrafts at Bank of China, Bank of China Fudeng Rural Bank and Bank of China Consumer Finance Co., Ltd. are overdue during the epidemic, they will be given a grace period for repayment, which will not be counted as a default and will not be included in the personal credit overdue record. The relevant interest and late payment fees can be reduced or exempted, and they can apply for credit repair.

(2) Agricultural Bank of China

For customers who have temporarily lost their income due to the epidemic, we will flexibly adjust the repayment arrangements for personal loans such as housing mortgages, credit cards, and farmer loans, and reasonably postpone the repayment time. Under the premise of complying with laws, regulations and regulatory requirements, personal loans and credit card overdrafts of staff participating in epidemic prevention and control during the epidemic period will not be considered as defaults, will not be included in the default customer list, and will not be charged penalty interest.

(3) Bank of Communications

Optimize personal credit services for personnel participating in epidemic prevention and control. For personnel participating in epidemic prevention and control, personal loans and credit card overdrafts at Bank of Communications that are overdue during the epidemic will not be considered as defaults and will not be included in the list of default customers.

3. If you meet the application requirements, you can call the bank or apply according to the instructions on the official website/public account.

Take Agricultural Bank of China as an example:

Due to the impact of the epidemic, Agricultural Bank of China's personal loan customers have temporarily lost their income sources. ABC will flexibly adjust personal credit repayment arrangements and reasonably postpone repayment times.

If the personal loan is overdue for staff participating in epidemic prevention and control or other customers affected by the epidemic, it will not be regarded as a default and no penalty interest will be charged.

Eligible applicants can directly contact the loan bank's account manager to report repayment difficulties, or call the Agricultural Bank of China's customer service hotline to register an application.

What to do if your car loan is overdue during the epidemic

It is recommended that everyone repay their loans in full during the epidemic. If you really cannot repay them, you can apply for an extension of the repayment period.

Overdue repayments during the epidemic period will not be included in the credit default record.

Regarding personal loan repayments, the central bank pointed out that financial institutions are required to give appropriate preferential treatment to credit policies for people who are hospitalized or quarantined due to infection with the new coronavirus, people who need to be quarantined for epidemic prevention and control, staff who participate in epidemic prevention and control, and people who have temporarily lost their source of income due to the epidemic. They must flexibly adjust the repayment arrangements for personal loans such as housing mortgages and credit cards, and reasonably postpone the repayment period. Any overdue repayments due to inconvenience in repayment during the epidemic will not be included in the credit default record.