Can you use your vehicle as collateral

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Can you use your vehicle as collateral – Title Loan?
Do you know that the top-up as well as loan which is against the car are available at quite low
rates as compared to the personal loans? Hence if you require fast cash so you can take the loan
against the vehicle car, even when you are never the bank account holder!
However, it is also not popular but just some banks and also some of the non-banking finance
companies offer the loans against the vehicles which is known as the Title registration loans.
Let us now see that what are the advantages or the benefits to those who are looking for the Title
Registration loans in Glendale.
Benefits:
◾To the lenders: They might find it quite cheaper to the source business from the clients whose
credit profile which is quite much comfortable.
◾To the customers: Customers also find rate of the interest to be cheaper as compared to the
personal loan.
Disadvantages:
◾The rate of interest for availing the Title registration loans is about 11–14%, as per the loan
amount as well as history of repayment.
◾Few lenders also offer the loan against the cars at quite loess rate of 16% which offers
reducing balance. Such kind of loans can also be well compared to the personal loans that are
mainly the unsecured loans as well as many lenders usually charge for more than 16% for these
loans.
The Customers might also get offered for 85% of value of the car but valuation is also dependent
on lender. Valuation mainly depends on the age of car, condition of the car and also the
depreciation value which enhances with the age.
Now, to arrive at recent value all the above points are considered. Hence, experts also refrain
from taking the loan against any of the old or the existing cars as value of loan would get
restricted to vehicle value.
If there is any top-up loan, so amount disbursed will get related
as how much of ongoing loan will get repaid by customer. One
can never sell the car which is against that loan that is taken.
Hence, lien gets marked on customer’s certificate and to the
registration book, which is the most significant or the vital
documentary proof related to the ownership. It would also
restrict the sale of car till hypothecation gets removed. You
should also require obtaining the no-objection certificate from
bank and it also give to the department prior to proceeding with
it.
Each person availing with the top-up loan in for the current car finance loan would also need to
wait for some more additional 3 years before. Three years is a maximum and highest term for
these kinds of top-ups. It will also work best when you avail top-up though still in early part of
title loan.
Options
For people who are looking for the quick cash, there are several options. Though, the rates for
the loans which are against property may be about the similar kind of thing that you require to
pay for loan against the car.
The point of the credit history of borrower is never a significant factor while opting for the loan
against blue chip shares, property and gold as collaterals have also some high value.
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