subject: Car Title Loan: Short Term Loan For The Customers [print this page] Financial crisis at the end of the month is not uncommon. All of a sudden, there can be a need for money. Banks and most of the financial institutions have a set procedure and a long list of formalities before they sanction a loan. That is not all. Your credit rating can also prove to be a hindrance. Moreover, there are only a handful of financial institutions offering short term loans. The best option to get out of immediate financial crisis is to opt for a car title loan.
A car title loan can prove to be useful and handy, if the borrower repays the borrowed amount on time. A car title loan procedure involves basic formalities and limited documentation. The borrower needs to possess a car by his/her name, whose payment has been made. The car is used as security. When you apply for the car title loan, you need to submit the title of the car and a set of car keys to the lender. However, you will get back the same once you repay the borrowed amount on time. This procedure does not restrict the borrower from using the car. Even during the loan repayment period, the borrower can continue using the car as long as he/she is making the payment on a regular basis. Technology has further simplified the process of applying for loan. One can apply for car tile loan, online.
The loan amount can vary according to the condition and market value of the car. If the car is relatively new, one can get a handsome loan amount. The borrower needs to submit some basic documents including the age proof, residence proof, and the income proof. For car title loan, the credit ratings are not checked. Often people avail car title loans to improve their credit ratings. A car title loan involves a simple process for anyone to avail the loan in case of severe financial crisis.
However, the loan amount should be paid back on time. The lender offers the money on a condition. If the repayment is not made on time, the lender can sell off the car to recover the loan amount. Moreover, the interest rate being very high, it becomes difficult to pay back the amount if it goes to the roll over period. In such a scenario, the benefits get nullified for the borrower and the car title loan seems to be a burden.
A borrower using the money and returning the same on time can actually enjoy the benefits of a car title loan.
