The Truth about Car Title Loans

The market for car loan schemes in India has become bigger and better in recent times. One of the significant reasons behind their popularity is the fact that they allow you to purchase your dream car without worrying too much about finances. Car title loans are an integral part of the industry as they allow you to get some quick cash for meeting your financial requirements. Here, the applicant agrees to give up the title of his/her vehicle in exchange for some money. These kinds of loans are pretty good for individuals who are willing to cope up with high car loan interest rates and other prominent risks.

Tools like a car loan EMI calculator play a significant role in the car loan industry as it allows you to know more about the total amount of money which you’d need to pay every month for repaying the loan. However, if you don’t know what exactly the bank is offering you, then you might be inviting some trouble for yourself. This is the reason why you should know more about the truth about car title loans beforehand. Even though this loan can prove to be a bit expensive in the long run, individuals who are willing to get their hands on some quick cash can opt for these kinds of schemes due to the quick approval and processing involved here.

When you’re in need of some quick cash, you could easily borrow some funds against your car’s value. All you have to do is to visit the lender and settle on a sum you’re willing to borrow. As a borrower, you need to give up the car’s title legally until you've repaid the entire sum of money. Car title loans are really popular around the country as that they get processed quite easily and quickly.

Car title loans are usually offered for a short term basis. You need to repay the entire amount of money within 30 days or less. However, you could negotiate the loan tenure with the bank authorities, depending upon your requirements.

The high rates of interest are one of the major drawbacks of car title loans. Just like payday and personal loans, the rates of interest can be really high here and, therefore, you might have to repay a lot more than what you've actually borrowed. If you wish to get better car loan interest rates, then you must research and compare the different schemes being offered in the market.

Another big issue related with car title loans is that you can easily lose your car if you’re not able to repay the loan within the stipulated time period. As you would've already given up the car’s title, you won’t have anything viable left to bring back your car.

If you leave out some of the key drawbacks of these loans, you could certainly do well by taking up a reliable car title loan scheme. So, don’t waste any more time looking for any other kind of loan for raising quick money and instead opt for a car title loan being offered by a reliable institution.