There are times when people are in need of immediate financing and they end up taking loans with high interests. This is due to lack of knowledge and unawareness about the different financial solutions available to the common man. A few must be aware of the concept of car title loan which is a great way to get immediate money at very low interest rates. The equity value of the vehicle that you own can be used as a security to procure the loan. There are many benefits that you get while you take such a loan. The common situations in which such loans are needed are paying off debts, rents and dues or in case of emergency medical services. These are the times when you can apply for such loans and you will get immediate assistance and the procedure is completed within an hour. Such services can be used in emergency situation and there are a few things that you must be aware of before you apply for one.
The amount that the person is eligible for is decided by the equity value of the vehicle. There are also ways to increase the amount that you can get but the interest rates also go up in such cases. The provider also offers credit recovery programs that help the applicant to gain access to better financial options in the future. Auto title loans are designed is such a way that the borrower can easily pay off the debt if he pays the installments on time. The best part is that you don’t have to submit the vehicle to the financer. It just serves as collateral for the money that you have taken. The owner gets to keep the vehicle and use it while he is paying the installments regularly. The applicant has to surrender the hard copy of the vehicle title in exchange of the loan amount. The lender places a lien on the car title which is removed once the loan is paid off.
The loan lenders do not check the credit history or any other records. This is why the loan gets approved in an hour and the applicant gets the money once it’s approved. The interest rates are a bit higher than the usual rates but compared to the documentation and approval time required for regular loans it turns out to be beneficial. Basic identification documents are required to apply for the loan. This may include any valid government identification like drivers license, proof of residence and a proof of employment in some cases. The loan amount is usually between 30 to 50% of the actual equity of the vehicle. The rate if interest is also based on the state where the applicant resides. The borrower can negotiate the repayment options with the lender and make sure that he has enough time to repay the money. You can seek the services of a financing company by going online or directly visiting the store outlet. The online portals have details of the entire process and you can also apply online and get the money within a few hours.