The moments when the savings are not enough and a person requires quick cash, it can be difficult to arrange such a large amount of money at times. Many people are not prepared to face sudden financial problems in their lives. Also, due to these unexpected emergencies, the monthly budget gets a little messy and one is left with the need for immediate cash to cover all the financial problems. All these problems can be easily resolved by getting a car title loan.
When a person gives the title of his car to the lending institution as collateral you will be getting money in return. Well, the lender will possess the title of the car according to the terms and conditions of the loan agreement, and that too for a temporary period. These loans are long-term loans with very low-interest rates.
What Is Meant By Car Title Loans?
A car title loan is also known as a vehicle title loan, car equity loan, or pink slip loan and is a secured loan where borrowers borrow money using their car title as collateral. To get this loan, you will have to submit some necessary documents. The amount of the loan is based on the market value and working condition of your car. Once the borrower pays back the loan amount, the lien is removed, and the title to the vehicle is returned. On the other hand, if the borrower fails to make the payments within the loan term, the lender has all the rights to sell the vehicle to get his money back. But the loan terms are long and flexible, allowing you to pay your loan on time.
What Is A Lien On A Car Title?
In a car title loan process, the lender places a lien on the car title that is being used as collateral. This gives them the right to keep the title to the car that belongs to you until the loan amount that you’ve taken is paid off. The car will still be in your name and the lender will only keep the title. Also, some lending institutions will verify the car’s documents and return them to you except the title.
What Are The Required Documents For A Title Loan?
To qualify for a vehicle equity loan, you must have a fully-paid for a vehicle owned by you. This means that there should not be any type of loan taken on or for your car. You have to submit some documents before taking a loan. The required documents include-
- Proof of legal age according to your province
- A vehicle not older than ten years
- A clear title to your vehicle
- Vehicle registration and insurance papers in your name
- A valid Canadian driver’s license
- Proof of permanent residence
- Your second set of car keys that work on all doors & ignition as well
How to Apply For a Car Equity Loan?
Applying for a car equity loan is a very simple and easy process. There are three ways to apply for the loan such as:
- Apply online: This method is the most convenient of all. Here, you have to sit back and fill out a small application form online on the website of the lending institution with which you want to get the loan. One of the loan agents will then contact you and will brief you about the loan process.
- Contact: If you don’t want to write the details one by one, this method is for you. It is another quick and easy way where you’ll contact the lending institution. And then a professional agent will provide you details about the complete process and will let you know if you are eligible.
- Visit the nearby office: If you’re the kind of person who wants to check and verify everything with your eyes then this option is made for you. You can visit the nearby office of the lending organization and then apply for the loan.
Get the Cash and Keep Driving Your Vehicle
Well, after following the entire process and approval for the loan you will be given the money on the very same day. A car title loan is a secured loan, but this is the loan where you are not required to hand over your vehicle that is used as collateral to the lender. You can continue driving your car as before even during the loan period. The lender only requires the title to the car as security, that too temporarily. As soon as you complete the payment of the loan, it will be returned to you.
Now the question is where to find a reliable lending institution. Well, Fast Canada Cash is the solution. They are one of the best and professional lending institutions in Canada. So, apply for a car title loan today to get your life back on track by solving all the financial problems in no time.