What is a Loan Against the Title of a Car?
Before we move on with anything else, we must understand the concept of what a loan against car title is. It is a type of a secured loan, in which a borrower takes a specific loan amount against the title papers of his auto vehicle for a specific time period. A vehicle such as a hatchback, SUV, van or truck can be used but there are a few requirements. The first and foremost required thing is the title of a car. It must be a lien-free, clear car title. By clear title we mean there shouldn’t be any liens on the vehicle. The vehicle being used for this loan should also be fully paid off. The borrower must not be paying any installments or have any financial obligations tied to a dealership or a financial institution.
Other requirements include government photo ID and proof of residence is required such as any computer generated utility bill in the name of the borrower will do. Since we are talking about a car title loan, a valid Canadian driver’s licence is a must. The borrower should also be of a legal age according to the province of residence. Vehicle ownership documents i.e. registration papers in the name of the borrower is also a must.
After arranging all these documents, the next major step is getting your car inspected for accidents, scratches and condition.. The inspection process is done thoroughly and the equity value of the car is calculated. This value matters greatly for such loans. It will decide the qualifying loan amount a borrower will be eligible for. After the inspection process is over and the qualifying loan amount is calculated, the borrower is asked to submit the title papers and an extra set of car keys to us. The car is given back to the borrower along with the cash loan. The process is done on the same day, and within hours the borrower gets to go with the car and the cash. The title papers are kept until the loan term is over and the borrower returns the loan amount with interest. If the borrower wants to pay the loan early before the completion of the loan term, he is free to do so with no penalty charged for prepayment.
Benefits of Car Title Loan
A car title loan is one of the fastest and hassle-free ways of getting a loan. Many things can hamper the loan process, a bad credit score being the number one on the list. Bad credit score can immediately result in a rejection for a loan from the banks regardless of what a borrower is going through and how urgent the needs are for funds. And, let’s say your credit score is good and you’re eligible for the loan, the process from submission of the documents until the approval and disbursal of the loan can take days or weeks. So, if your loan requirement is urgent and you need cash on the same day or within hours, loan against your car title is the best option to go with.
There are more benefits to a car title loan :-
- The borrower has to submit very few documents which are normally basic documents you regularly have access to.
- Paperwork is minimal compared to a traditional source of lending.
- The borrower gets to drive their car as there’s no requirement to keep your vehicle with us.
- Fast Canada Cash provides long loan terms of up to 4 years, making it easy for the borrower to pay back the loan money.
- The most convenient benefit is the NO penalty charge for the early payment of the loan.
- Borrowers can enjoy the NO credit check benefit also. Loan approval is given irrespective of a bad credit score, as the title papers are important in this type of loan and not the credit score. Even the credit history plays no important role.
- The source of income or job requirement is also not asked of.
- The loan amount is disbursed within no time and the borrower gets the cash in hand to solve all their financial problems.
Money plays a crucial role in today’s survival. One may face trouble where he requires urgent cash to bail himself out. He cannot rely on banks or wait months. A loan against your car title is the best way out. Fast Canada Cash is here to help you in difficult times. Call us today at toll-free 1-(888) 511-6791 or apply online and get your car approved.
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