Are you facing a financial crisis and need instant cash? If you own a car, then you can consider getting an instant loan against the car to solve your financial issues. Loans against cars have become popular in recent years due to their convenient nature. In this article, we will provide a comprehensive guide to get loans against your car and clear all your doubts regarding the loans.
What is an Instant Loan Against Car?
Instant loans against cars are secured loans where you pledge your car as collateral to the lender to get the loan. The lender evaluates the value of the car and then lends you the loan amount based on its current market value. The loan amount depends on the value of the car, and usually, the lender offers up to 70% of the car’s value as a loan amount.
The borrower has to repay the loan amount with interest within the predetermined time frame. If the borrower fails to repay the loan amount, then the lender has the right to repossess the car and recover the outstanding amount.
Who is Eligible for an Instant Loan Against Car?
To be eligible for an instant loan against car, the following criteria must be met:
- You must be a resident of India
- You must be over 18 years of age
- You must own the car and its registration papers should be in your name
- The car should be free from any outstanding loans
How to Apply for an Instant Loan Against Car?
Applying for an instant loan against car is an easy and hassle-free process. Follow the steps mentioned below to get an instant loan against car:
Step 1: Choose a lender
There are many banks and non-banking financing companies that offer instant loans against the car. Research and compare the interest rates, loan amount, repayment tenure, and other terms and conditions of the lenders before selecting one.
Step 2: Submit the documents
The borrower needs to submit the following documents to the lender:
- Identity proof: Aadhar card, PAN card, passport, voter id, or driving license.
- Address proof: Aadhar card, passport, voter id, or driving license.
- Income proof: Salary slip, bank statements, or income tax returns.
- Car documents: Registration certificate (RC), insurance policy, pollution certificate, and service records.
Step 3: Evaluation of the car
After submitting the necessary documents, the lender evaluates the car’s value based on the make, model, year of manufacture, and condition of the car. Once the evaluation is done, the lender decides on the loan amount that can be sanctioned.
Step 4: Loan Approval
Once the verification process is complete, and the loan amount is decided, the lender approves the loan. The borrower needs to sign the loan agreement and submit the post-dated cheques for the repayment of the loan.
Step 5: Disbursement of Loan Amount
Once the loan is approved, the lender disburses the loan amount to the borrower’s account, or they can provide the loan amount in cash as well.
Advantages of Instant Loans Against Car
Instant Loans Against Car come with a lot of advantages, as mentioned below:
- Quick Approval: One of the most significant advantages of an instant loan against the car is that they have quick approval processing. The borrower can get the loan amount within 24 hours of applying for the loan.
- No Need to Sell the Car: With instant loans against the car, you do not have to sell your car to get instant cash. You can get the cash you need by pledging the car as security and still keep the car.
- No Credit Check Required: The borrower’s credit score does not affect the loan approval process as it is a secured loan. The lender only checks the condition and value of the car to approve the loan.
- Easy Repayment: Instant loans against the car come with easy repayment options, and the borrower can choose the repayment tenure based on their affordability.
- Flexible Loan Amount: The loan amount of instant loans against a car depends on the value of the car, and the borrower can get up to 70% of the car’s value as a loan amount. So, the borrower can choose the loan amount based on their needs.
Conclusion
Instant loans against cars �are a great way to get instant cash during financial emergencies. It is a convenient and hassle-free process that provides quick cash without having to sell your car. Loan against car eligibility criteria for an instant loan against the car include being a resident of India, over 18 years of age, and owning a car with no outstanding loans. Applying for an instant loan against the car is simple and only requires basic documents such as identity proof, address proof, and income proof. The loan amount depends on the car’s value, and the borrower has to repay the loan amount along with the interest rate within the determined time frame. So, if you need instant cash, go ahead and get an instant loan against your vehicle and drive your finances forward.
