What Is A Car Title Loan & How Does It Work?

With The Value Of Your Car Borrow Upto $50,000

Cash, being an essential part of our daily life, can’t ignored. One day without holding sufficient cash disturbs the whole of our finances and may lead us to face unfavorable conditions. Each and every person in their lifetime, faces many occasions when sufficient cash is not easily available to them. When their savings have already exhausted and the next salary is far from received. This generally happens in the case of emergencies or daily household & family expenses. If these needs are not met timely, huge problems may be faced. Cash is essential for medical emergencies, financial emergencies, monthly payments, family obligations, planning for special events and what not. So, it is important to have your options handy at all times.

Since access to cash to a single individual is only limited, the prospects of borrowing extra are always looked upon. There are many types of loan options available in Canada but each has their own limitations. Requirement of a stable credit score, proof of job history, heptyl prepayment penalties, lengthy formalities and processing delays are notable some. But it is important to take immediate effects when it comes to cash requirements. Which is why, Car Title Loans are the best alternative.

What Is A Car Title Loan?

Before you prefer car title loans above other types of loans, you must be interested to know more about it and its various features.

  • A Car Title Loan is the one in which the title of your car is kept with the lender and instant cash loan is given against it.
  • This can be approve against the title of any vehicle like car, SUV, truck, motorcycle, Van, etc. which is not more than 10 years old.
  • The available period of such loans is 4 years.
  • The amount of loan is according to the value of the vehicle, which serves the purpose of the loan.
  • The vehicle must be fully paid-for and have a clear title.

Attractions of Car Title Loans

  • Instant Cash Receipt

In the case of a car title loan, cash is received within 24 hours of making the application for it. It is one of the key takeaways of such a loan since there are no delays in meeting the immediate cash requirements. Is also one of the best reasons, because of fast cash approve in such a short duration in any other type of loan. It helps the borrower to satisfy his cash requirements efficiently.

  • Stable Credit Score Not Required

Another feature that makes it more attractive among borrowers is that no credit checks are taken out for the purpose of approval of such loans. The title of the vehicle serves well as the security of the loan and so, the lender is not concerned about the credibility of the borrower itself. As long as the vehicle holds good value and it’s specifications are marketable, a bad credit score of the borrower does not affect his prospects of having such a loan. 

  • No Prepayment Penalty

In case the borrower has sufficient funds, enough to pay-off the loan in full well before the expiry of the loan period, he can do so without inviting any prepayment penalty. The borrower is at liberty to make early payment to the lender without waiting for the expiry date. This is another plus point that makes such a loan desirable to the borrowers in the long run.

  • Possession Of The Car Stays With The Borrower

The fact that the possession of the car whose title has been used for the loan, stays with the borrower for the duration of the loan is also a reason for its attraction. Which means, the borrower can perform his work and everyday chores without any difficulty. 

  • Lesser Processing Time

It is a well-established fact now that the car title loans take considerably lower time of processing as compared to the other loans and these are cost & time efficient in every aspect. The reason for such ease is involvement of lesser formalities. The application form is quite simple and requires only necessary credentials. 

How Does It Work?

All car title loans follow the same standard mechanism. The loan amount, processing speed and monthly payments vary from lender to lender but the overall process stays the same. In this section, we will understand the working of such loans by focusing on the intricacies of the process.

Documents Required:

There are certain documents that are necessary for the purpose of verification in the process of approval of title loan. Although only the title of car and spare keys are hold by the lender for the loan period. The following documents are requires for inspection and verification purposes.

  • A clear title of the vehicle.
  • The proof of registration of the vehicle under the borrower’s own name.
  • An all inclusive insurance policy, which is also collision deductible, under the borrower’s own name.
  • A valid Canadian Driver’s License. 
  • Proof of permanent residency of the borrower.
  • Details about the model and other specifications of the vehicle.

Steps to Be Followed For Approval:

The elaborate steps that are followed for the approval of car title loans are:

  1. Realize your cash requirements.
  2. Fill the online application form.
  3. Get the vehicle inspection and documents verification done.
  4. Submit the car title and spare keys with the lender.
  5. Receive the cash within 24 hours while continuing to hold your car.

Approve Loan Now– Best In Canada

Among your best options in Canada to avail a car title loan is Approve Loan Now. They offer the most competitive interest rates at low processing time. You can borrow upto $50,000 and receive the cash the same day of application. Car title loan is your best way to be safe from financial uncertainties and helps you lead a tension-free life.

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