There are times, when you are sprinting short of cash, but you have many expenses to take care of. In this time of monetary crunch, fast cash turns out to be the only , liberator In this position, a car title loan can be of magnificent help to you. This is a form of fixed loan. The borrower uses the title of the vehicle as security for the loan. The lender can place a lien on the borrower’s car title. The borrower has to submit the documents of the car temporarily to the lender. An after the loan amount is repaid the former can reclaim the car.
Collateral is important
Unlike a majority of loans, credit history of the borrower does not affect the approval of the loan. Even with a poor credit score, you can avail this loan. Owing to this reason, this loan is gaining popularity among the borrowers who are in need of ready cash. Since no credit score is required, no much background check or documentation is required for approval of this loan from sbwire.com. The value of the car is of the highest importance for this loan, and it also reduces the risk of the lender. The condition of the car is also important. So, if you have a history of bankruptcy or foreclosures, the car title loan can fetch ready cash, at times of emergency.
Nature of the loan
These loans are of short term, and in comparison to other loans have a higher rate of interest. At times of emergency, when you crave for immediate cash, this loan can help you to get in a very less time. You can get this loan in less than 15 minutes of applying the loan. With this loan, you can avail money ranging from $100 to that of $100. The amount to be lent depends on the value of the car. The lender calculates the loan amount based on the resell or auction value of the car. They also see that the title of the car is clear of any charges and financial outstanding. The only requirement needed by the borrower is that they need to have a steady source of income.
Easy payment procedure
Often while applying for loans from financial institutions, you have to go through rigorous screening process and often applications are rejected based on innumerous grounds. But for this loan, you need not have to go through these situations. For this loan, you do not require a co-signer. This loan is easy to pay. Since the loan amount is not huge, it is only the interest amount that needs to be paid back. In easy monthly installments, you can repay the money. But in case you are unable to pay the amount, the banks or the other financial institutions may possess the car in lieu of the loan.
Apart from the banks, credit societies, cooperative societies, you can also find a number of online enterprises, who offers car title loans to the borrowers worldwide. The requirement for availing loan online is same as that from banks or other institutes. But, it is advisable to check the authenticity and term of these companies, before applying for a loan.