If you are in a desperate need of cash for an unexpected emergency situation one can choose a car title loan. In difficult Financial Times the only feasible option is to get a loan, most people are scared of it but it has to be done to make life stress-free. If you try to approach a bank for the loan it may take a couple of days for approval. It is more difficult to qualify if you have a bad credit score, in this scenario you can get a car equity loan. It will help you to cater to your financial crisis and get rid of this financial dilemma. Let’s take a look and understand an auto equity loan.
What Is A Car Equity loan?
A car equity loan is a loan where you get cash using your car as collateral. This loan is designed for people who have a bad credit score and are unable to get approval for the loan from banks and other traditional lenders. It is one of the convenient and simple ways to get instant money. In this loan you give your car title papers to the lending organization only for the loan period. The market value and condition of the car decides the loan amount you are qualified to get. Your lien free car is fully inspected by the agents and after that the lender makes sure you get a good amount of loan. .
Perks Of Applying For A Car Collateral Loan
There are several advantages you can get by getting this loan. Here are some of the perks of applying for a car equity loan.
No Job Requirement or Credit Score Checks
You don’t have to worry if you have a bad credit score or don’t have a secured source of income to get approval for the loan. These loans are secured against your car and the lender only requires a lien free car so you do not have to provide a credit history or income source.
Low Monthly Payments
In this type of loan, lenders offer small monthly payments to make it easy for the client to pay it. You can easily fulfill the monthly payment plans as they are highly manageable and affordable.
Low Interest Rates
Lending organizations provide a lower interest rate than any other in the industry which is affordable for the borrowers.
Fast And Secure Process
The loan process is fast and you can get a loan on the same day if your car qualifies the basic criteria. The loan is secure as your car title pacers are used as the collateral.
Flexible Repayment Options
These organizations provide long tenures to no burden their clients with heavy monthly payments. They offer it because the loan is secured against your car.
No Prepayment Penalties
Another advantage of using a car collateral loan is you can close the loan before the maturity date and you will not be charged additional fees.
Keep Your Car While You Pay
Borrowers have access to their car and can keep driving it throughout the loan process.
Process For A Car Equity loan
Choose Lending organization
The first step is to get in touch with a lending organization which offers low interest rates and long tenures. Research properly to select the best lender that fulfill your needs. To start the process you can contact their office or fill out the form online.
Requirement For Approval
Every loan service has certain requirements like in banks you need to have a good credit score to qualify for the loan. This loan also has certain requirements that must be followed for instant approval. The requirements are
- A Fully paid for vehicle (no older than 10 years)
- Borrower should have a lien-free vehicle title
- Proof of permanent residence (a piece of computer-generated mail)
- Vehicle registration papers in your name
- Vehicle insurance papers in your name that includes collision and comprehensive
- A valid Canadian driver’s license
- A second set of keys to your vehicle
- Proof of legal age as per your province
Inspection Of Car
When you fulfill the necessary papers and requirements , your car is inspected by the agents. They review your car conditions and decide the market value of the car.
Cash is provided on the same day when you are qualified for the process. High market value cars have a maximum probability of getting huge amounts.
Borrow Upto $60,000
Equity Loans Canada service can get you upto $60,000 if you meet the basic criteria. They are the leading financial institution in Canada to provide car title loans with minimum interest rate and flexible payments options. Selecting the best loan lenders is an important job and you can’t be careless about this. Before choosing research properly and compare the benefits with other lending providers in the industry.