How To Apply For Auto-Title Loan With Low Interest
Life is unpredictable, and so is the financial status of an individual. Tough times have individual in a financial-bind and thus force them to initiate steps, they haven’t done before. Even there are such individuals, who live on pay-cheque to pay-cheque, and in case of financial emergency, suddenly get struck and lose their way. It is in these times, that a title loan acts as a helping hand.
Title loans – at a glance:
Quick auto title loans, is a form of secured loan, where the individual (borrower), can use vehicle as collateral and get money at a quick succession of time. Collateral is more like a pledge to the lender meant for securing the repayment of the loan. These loans are a way of getting fast cash, for the individuals who survive on the paycheck, so that they can sail over the cash insufficiency.
Prerequisites for getting a title loan:
- The first and foremost criteria for getting a title loan are that the borrower has to own a vehicle.
- Using vehicle as collateral, the lender can lend money ($2600 to $50000) quickly as well as at a low rate of return.
- At the time of application of the form for a title-loan, the automobile must have the name of the borrower on the title. This enables the lender to use it as collateral.
How much will the car qualify for?
The amount of money that a lender can lend depends on the value of the car or the automobile the borrower possesses. Maximum cash that can be borrowed can be mathematically termed as 50% value of the car’s value. This value is denounced by the government. To know the value the car qualifies, all that is needed is to fill up the form online on various authorized lenders’ site to know the value or the amount of loan, an individual can take up.
Documents needed for taking up title-loan:
- Credit application
- Recent photographs of the vehicle
- Registered DMV
- Driver’s license
How it works:
After jotting the documents, the borrower is required to apply online to request for granting a title loan. After filling up the form of respective lender, documents are sent for processing and verification, after which the cash is deposited into the account of the borrower.
Different lenders have different terms and policies, as well as interest rates. The interest rate varies accordingly. It ranges from 2% – 30% per month. The rate also depends on the credit that is borrowed.
For an individual taking up a title loan, he/she must plan accordingly for it. Title loans are a means of low interest return and fast cash, if it is taken for a month or two. If the borrower fails to return the credit (principal and interest), then the consequences and the burden of repayment of the credit are far too sulking as compared to the banks, credit-card companies etc.