Loan with vehicle guarantee Have you heard of this?
Today there are many ways to get a loan. There are no longer only personal loans that require a lot of paperwork to get the money. In fact, if you have a good credit history , you can even access fast online loans .
Banks, and other financial institutions, are aware of the needs of their customers, so new products are emerging for them. A financial product that is useful for those who do not have a monthly fixed income support is the vehicle guarantee loan. Know what it is and if it is what you need.
A pledge loan
The vehicle guarantee loan is a pledge . What does this mean? It means that you get the money you need if in return you leave your vehicle under warranty.
It does not mean that your car will stay with the bank or entity to whom you are asking for the loan. In the country, what is done is to install a chip in your vehicle. This will stay in it until you pay your debt.
Is it as easy as it sounds?
As for any loan you have to pass an evaluation. This is less demanding than what you are requested for personal loans and it is that since there is a good in pledge it is not so important to have an excellent credit history .
What I do advise you, if you are going to apply for this type of loan , is that you have your ID up to date. Remember that if you are married you will also need your wife’s ID – or your spouse’s -. Companies that offer this service should also ensure:
1. That your SOAT is current,
2. That your property card is in order
3. That your car has passed the technical review (it is not in all cases, but you have to be prepared).
If everything is correct they will make a quote. The amount they can lend you is granted considering factors such as: your car brand, year, model, mileage traveled, etc. So you must ensure that your car is in optimal condition to get more money for it in this type of loan.
What if I don’t pay on time? I lose my car?
Usually these types of loans have a contract that can be renewed if after the period you can not meet to return the amount. If you renew you will have to pay the interest and commissions, the ideal is that you do this until you can pay the total debt , otherwise the company will end up topping your car to recover the amount that you lent.
As you can see this type of loan can be very useful if you have a car and need money in a short time and without much paperwork. What do you say? Would you be encouraged by this type of loan?