Tag Archives: car title loans
Car title loans: For Urgent and Emergency Funding Only
The borrowers who receive car title loans are entitled to keep the vehicle and drive it as own car. But a set of its keys is required to be left with the lender. Car title loans are not difficult to avail if the borrower owns a home or any such property of his own and if the same property is allowed to be used as collateral. By this way the lenders ensure that they can grab this property in case the borrowers do not pay back the money plus interest in full and within stipulated time. Anyone who is badly in need of funding within a short time and who is confident in respect of regular payment within the very short repayment tenure can try for car title loans.
It may happen in some cases of car title loans that the lender keeps the car in his possession and hands over the vehicle to the borrower when he clears the loan within the payment duration. The borrower may reach to very sad state if he, for any reason whatsoever, fails to pay back the money lent. At this stage the lender can dispose of the vehicle in order to realize the money paid as loans.
In the finance market there are plenty of lenders whom the borrower can contact online. Banks and financial agencies have provisions for car title loans. If the borrower surfs the web sites he will learn in details about the terms and conditions provided by different lending authorities. If he does this with patience he may discover any favorable options in car title loans. He will just submit application for the chosen car title loans online and money will be transferred to his bank account as and when the lender approves the application.
Car insurance should be bought immediately after the borrower gets the title of the car. He will have to produce electricity or telephone bill to document proof of his address. He will have to produce documents as evidence of ownership of his home in case the home is used as collateral. The borrower must be at least 21 years of age and must be employed in any concern for the last twelve months with minimum monthly income of $1000.
The amount of loan depends on the decision of the lenders but the rate of interest in case of car title loans is usually much higher and the repayment period ranges from 15 to 30 days only.
Thus anyone can understand that car title loans are for urgent and unavoidable emergency funding only.
Car title loans: Friendly Only for Emergency Funding
Car title loans are loans which people try to get in utter emergency only. If some good amount of money is urgently needed one may go for it keeping in mind that repayment must be made within a very short period. Car title loans contracts may of different forms most common of which is that the title of the car is offered to the lender as evidence of collateral property or as just security. This generally happens if the lender is a bank or any financial company. The borrower is asked to leave a set of the keys of the car to the possession of the lender. The borrower can use the car as his personal vehicle.
Car title loans have other forms also. It may happen that the borrower is not allowed to keep the cars possession. Instead of it the lender will keep the car with him and give the same back to the owner of the car when he will pay back the money in the stipulated period. It happens that the borrower cannot clear the loan within the period. This is a very critical state for the borrower as the lender may sell the car to recover the money given as loan.
There are many lenders from whom one can secure car title loan. Banks are there and there are different financial companies in the market. One can search on the internet and find particular web sites of the companies which receive online application for car title loans and give the loans. It is rather simple to get this kind of loans.
The borrower must have the title of the vehicle in his name and the car must be insured in all respect. He must submit documents supporting his address proof and latest telephone bill. If he owns a home a statement of mortgage is demanded. The lender will want some document supporting the fact that the borrower is in a service approved by the law of the land and that he has been in the service for one year minimum. His annual income should not be less than $12000 in any way. He must be 21 years at the time of submitting the application for the car title loan.
How much money the borrower can get? It is up to the discretion of the lenders. It may not be any good amount and it may at best within half of the assumed resale cost of the vehicle. The borrower may be or usually is asked to pay back considerable amount immediately after he receives the payment. The rate of interest for car title loans is really exorbitant and it is nearly 300 percent.
People take Car title loans for extremely urgent necessity and they must pay back the loan within a very short span of time, that is, within 15 to 30 days.