subject: Car Title Loans : Simple And Swift [print this page] A Car Title Loans is a kind of secured payday loan. The only difference being that in this case the title of car acts as collateral. Thus, a clear title of the car is a prerequisite.
This short term fiscal programme has repayment tenure of one week to one month. If the borrower is unable to pay back within this time he can ask for another one month extension. However, this should be avoided as the interest rates are very high. Sometimes a lender may even take the possession of the car.
Unlike most of the secured loans, car title loans have a very high interest rate. At times it can go up to 300%! This is mainly because these are short term loans and the lender has to make his profit within this period. Loan seeker can get a loan ranging from 100 to 1500.
One of the most attractive reasons for people to apply for above mentioned loan is the fact that it can be availed by both good credit borrowers and bad credit borrowers. Hence, a UK citizen having poor credit such as defaults, CCJ, IVA etc. too can get financial aid. Another reason is that the loans gets deposited in loan seekers bank account within 24 hrs and that too in a convenient and hassle free manner. The loan funds can be used as per the wishes of the borrower; to pay pending bills, to meet medical expenses, paying school fees and so forth.
As for the lender, it is absolutely safe. In case of default, he can sell the car and take out his invested money. One thing about which a loan seeker should be cautious and should ask is whether the loan provider will keep the car with him till the loan is repaid or if he gives the loan on car title.
When a would-be client wants a loan, he has to take the car to the lender or in some cases the lender might visit borrowers house. He will assess the car and conclude its resale value. The loan amount will finally be decided after taking into consideration cars resale value. Most often aid is given up to 50% of the estimated resale value.
