How to loan money against your car

To loan money against your car is a great option for people with unsteady credit history and for some fast cash. However, it’s also a very risky way of loaning money as you have to keep your car as collateral. It has been considered a great option in cases where money was needed urgently by people over the years. There are a lot of options available for this online nowadays. There are some steps that you can follow for this process

• Check for lenders: There are several banks and online agencies that are providing this loan. They can offer these loans readily as they are secured loans. Some banks don’t even need you to be a member of the bank. You can just pledge you vehicle to them and borrow a loan on the value of the car.
• Car valuation: After the deal is made, the car will be valued by the lender. Most of the local lenders will not do a thorough evaluation. You just need the car title to be right, driving licence, insurance and any other car documents in place. You will receive a loan based on the market valuation of the car.

Once the documents and procedures are in place, you will receive your loan amount which will be similar to a personal loan and you can use it for any personal purpose. The benefits of this kind of loans are:

• Fast cash in case of emergency: usually you can receive the funds within hours or days of applying for it.
• Less processing time and mostly no processing fees: For the online applications, most of the times no processing fees is deducted
• Bad credit scores don’t matter: As the car is considered as security for the loan, bad credit history doesn’t matter. 
• No extra collateral security needed: handing over the title of your car to the lender itself is taken as guarantee, so no additional security is required.
• You can continue using your car as usual, but if you don’t pay the loan on time, you stand to lose your car all together.