Why avail car title loan?

A car title loan can be your ideal solution in case of financial crisis. Often uncalled situations in life put us in a state of crisis. We are unable to take a decision as to how to arrange money in a short span of time. The customer centric financial institutions have come up with car title loan to help the people arrange cash in a few clicks. Sitting at home, you can apply for car title loan and get the fund transferred to your account within a couple of hours. In true sense, the loan process is as simple as it sounds.

A car title loan is for people who possess a car, whose entire payment has been made. The loan amount sanctioned is usually half the market value of the car. The borrower can apply online and submit the basic documents to enjoy the benefits of a car title loan. A borrower has to submit the title of the car, a set of car keys and some basic documents including the income statement, age proof and identity proof. There are financial companies that assist the borrowers with documentation. From the day a borrower applies for the loan till the day he/she makes the final repayment of the loan amount, the car is with the borrower. The car need not be submitted to avail such loans. Although the car is used as security, the applicant can continue using the car.

The process is quick, simple and hassle free. Applicants can easy apply online. Moreover, there is no credit checking involved in case of car title loan. Irrespective of the credit history of the borrower, the loan is sanctioned. People with good, bad or no credit history can avail the benefits of a car title loan. Often this loan is used as a way to improve the credit score of the borrower.

The interest rate is slightly high but if the amount is repaid on time, the objective of the loan is fulfilled. There are financial institutions such as CTL that do not charge for pre payment of the loan amount. However, if the borrowed amount is not paid back within the stipulated time, the interest rate goes up further and at times it is more than the loan amount that is borrowed. If the borrower is unable to repay on time, the financial institutions will have all the rights to sell it off and recover the loan amount.

So, this kind of loan should be availed as short term loan at OTL, to fulfil the immediate needs of the borrower.