subject: Use your car to the fullest avail loans against car [print this page] Use your car to the fullest avail loans against car
This loan product is relatively new concept in the financial loan market. These loans are quite different from the well known loans which are given against property. Here, the amount you can borrow might not be as high as in the loans against homes but there are vast number of options available from where you can avail this loan and that too very quickly. The only thing you require is logbook of your car. Car's logbook is a compilation of various documents such as purchase, registration and insurance details of a car. Hence, when borrower uses his/her car's documents as collateral against loan, it is called logbook loan.
These days amidst the financial uncertainties every lender is more comfortable with secured loans instead of unsecured loans as they have something to bank upon in the case of default. Logbook loans come under the secured loan segment, as borrower puts his/her car's logbook as a collateral to secure the loan amount for the lender. In the case of default, lender can repossess the car to claim his/her money as he/she is already in possession of the car's logbook. To the borrower's knowledge, he/she can continue using his/her car because all the required formalities for the loan are fulfilled by the car's logbook itself.
So this is a very simple concept borrower uses his/her car's documents as collateral against loan. This loan product is not as risky as the loan against property, because if the borrower defaults all he/she can lose is a car. However, in the case of loan against property you may lose your home if you don't pay the borrowed amount with in stipulated timeframe.
Basic requirements to avail this loan :
You should be a permanent resident Should be 18 or above in age Car should be registered in your name Should have at least 3 month old bank account
In order to avail the loans against car, borrower has to make sure that his/her car is not more than 10 years old and, is in good working condition. You should go online in order to avail the best loan deal with several offers by various lenders.
