Loan processes have been designed to provide financial aid to people when they are in need. One can easily look around themselves, and find number of lending companies but people with no good idea about their structure or processing fails to make the right decision. The loan processes can be easily differentiated according to their purpose, their structure and the time they take for processing. Some of them require collateral to secure the loan, while others are affiliated with higher interest rate to offer instant cash. People often face plenty of difficulties and has to go through some complex processes if they haven’t opted for right loan service as per their situation and requirement.
Traditional loan process which includes banks and credit unions has complex and pre-defined structure with long list of demands and eligibility criteria. One needs to go through multiple verification processes and is required to have sound financial condition and good credit score in order to qualify for it. If one opts for traditional loan while in need of quick cash flow there are high chances they will not be able to get through it easily. In such situation, nothing can beat the flexibility and ease which is provided by car title loans.
Title loans are said to have the simplest loan structure and straight-forward processing which allows borrower to get instant access to cash. If you are stuck in an uncertain situation including emergency medical bills or some surprise expenses which demands certain flow of cash and left you with no other option than borrowing; car title loan is the best available solution for you. It has minimum of requirement and doesn’t determine credit score or financial condition of the borrower unlike most of the available loan processes.
Any individual who completely owns the vehicle and possesses a clear and lien free vehicle can easily qualify for title loan irrespective of their financial background. The vehicle title of the borrower is used as collateral and equity of vehicle secures the amount of loan. Presence of collateral makes the loan process secured while increasing the chances of getting an affordable interest rate and convenient repayment structure.
Complete loan process from filling the loan application form to getting access to fund can be completed within few hours. Car title loan has minimum of demands in case of paperwork also, the borrower needs to provide lender with clear and lien free vehicle title, copy of photo identity proof, car insurance paper and regular income proof. Moreover, borrower’s car is not physically possessed by lender; borrower is free to use their vehicle during the loan duration while making scheduled payments.
The amount of loan is determined by representative of the lending company after inspecting condition of vehicle and they accordingly design the repayment structure with all the major details related to loan. If borrower agrees on provided interest rate and amount of the loan, loan is approved by representative of the lending company by placing a lien on vehicle title of borrower and is temporarily held by representative of lending company.
Published by Joe Pirest