Car title loans are one of the easiest to get and that too when there is an emergency because they demand no difficult or troublesome formalities and with minimum requirements and expectations the borrower becomes eligible for the loan amount. But it is very important for a borrower to understand that his car or any other vehicle is at great risk and that he would be able to get it back only when the amount is repaid within the time given to him by the lender. Now while going for such loans it is also important for the borrower to understand and get to know the rates of interest and the methods used in calculating them because the rates charged are generally higher than the ones charged by the banks and other financial institutions.
These loans are generally short-term ones, for a period of 15days or a maximum of 1 month and they generally do not exceed this period. And the interest rate that is charged to the lender is a triple-digit annual percentage rate (APR), which is a very high percentage than the terms of other credits offered. So this loan is considered to be the most expensive forms of credit. And the loan amount is sanctioned to the borrower based on the value of the vehicle and that too either 25 or 50% of the total value of the vehicle as per the current market trends. Mostly the value of such loans are for $100 or to a maximum limit of $5500. But there are also lenders who have acquired close to $10000 as the loan amount under this car title loan facility. Again the value of the loan amount purely depends on what type of vehicle is pledged by the person, it`s current working conditions etc… And the person`s repayment capabilities and source of income are also taken into consideration. So there would definitely be a variation in the amount lent to different borrowers.…Read More →