To describe a car title loan, it is said that a short term loan that is secured by the title of car. In this loan, someone else holds the title of car and you keep the vehicle with yourself. The main purpose of this loan is that lender keeps his amount secured. In comparison with other loans, car title loan is easy to avail. Therefore, the borrowers consider this loan for tackling their instant needs in a very short period of time. The borrowers can raise the amount depending upon their needs.
The loan is usually approved for a lesser period of time i.e. 30-day. At the end of loan tenure period, you can either pay off the entire loan amount or you have the option to pay the minimum interest rate. Importantly, the loan can be extended for another 30 days. The borrower can extend the loan period according to his wish.
For availing this loan, a clear title on an automobile is a main requirement. This feature fastens up the speed of the process of the loans. Normally, these loans are accepted faster than other regular loans. The loan is approved after making some essential background checks with regards to the borrower’s credit history and importantly, a tag of clear title on the automobile. In case of continuous non-payment of loan, borrowers can result in a permanent loss of their automobile. Borrowers can claim the amount that is left after paying the left balance of the loan.
It is of utmost importance that borrowers have to be extremely careful while applying for the car title loans. The borrower must check the credibility of the lending institution and take a car title loan from the licensed lenders i.e. who are authorized to offer the loan. The vehicles like car or automobile are considered as an important asset and cannot be risked to any deal without taking into consideration.
Online mode can be one of the best modes for comparing the quotations from the online financial market. The borrowers must compare and contrast the quotes to select the best suited quotation for them.