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In the last 3-4 years, Laos has been aware of the don payment of high-priced item such as mobile phones or cars, which many people may not know the concept of down payment, where the pay the installment or how much interest is collected. This article introduces you to the basics of down payment, for those who want to own the items they want through this payment method.

Pros in Down Payment

- You do not have to pay the full price to be able to buy the item you want.

- You can pay the price of the items in installments

- The leasing company often offers 0% interest.

- If you have a membership card, you can also get a discount from participating stores or collect points for future use.

Cons in Down Payment

- Down Pay = Taking Loan

- You need to have a financial statement to prove that you can pay in installment

- You may have to pay the penalty fee if the payment is overdue

- Each store or leasing company have different terms and conditions.

Usually, to start buying items in installment, you’ll need these documents:

- ID Card or Passport

- Family Book

- Salary confirmation or 6-Month bank statement to confirm the income set by the company

- Credit information bureau

- Address Confirmation Letter

The Basis of Down Payment

To down pay the items, you need to check with the store or leasing company if the item offers installment payment, and that items should not exceed the amount of money you currently have. When paying in installment, you can choose the installment payment by  6, 9, 12, 18, 24, and 36 months, in which the interest is different fr each period. 

How to Down Pay the Item

1. You need to have an income that you can pay following the leasing company’s limit, each item would have a different limit. Usually, you need to have an income of 1,000,000 kip ($100) or more. 

2. Pick your payment channel, which you can pay through any bank apps, or go to the leasing company. 

3. Pay the full installment and on time each month to avoid a penalty fee.  

To down pay anything, you will need a thorough financial plan, so you can pay an installment on time and not be on a loan and pay for a penalty fee. I hope this article can help in guiding you on how to down payment the item you want.

On yula.la website, we have a list of leasing companies and banks that offer down payment for the product of your choice, check out www.yula.la/en/finance for the listing!

Written By: Vanida Souvannavong