DescriptionA title loan is a form of unsecured personal loan where borrowers may use their car title as security against a loan. Borrowers must first allow a bank to put a lien on the title of their car title, then give a borrower a loan amount, and allow the bank to temporarily attach the title. A bank will give the borrower time to make payments according to a schedule determined by the bank. If the borrower misses payments, the lender may then sell the title of the car, which is recorded as the security, to another financial institution.
PurposeBorrowers can take advantage of a car title loan by using it for any purpose. There are some who use it to consolidate debts they have. Others use it as a down payment on a new home. Still others use the cash from the loan to purchase a new model. But whatever the purpose, it is important that the money is repaid according to the scheduled repayment period. You can get the best loans at the Georgia Title Loans company. Check them out.
Terms & ConditionsBorrowers must know all the terms and conditions before signing the contract with the lender. Some lenders may offer attractive interest rates but charge high processing and delivery charges. Some may also charge hidden fees like application fee or title fee. In order to avoid these fees, it is advisable to read the contract thoroughly before signing.
Duration Loans are short-term loans. Car owners may borrow only the funds needed to pay for the car repair, rental expenses, or other charges incurred. Repayment may be done only when the borrower receives his/her next paycheck. For car title loans, borrowers should repay the money as soon as possible because interest rates are usually very high.
Collateral Some lenders require borrowers to offer property as collateral in order to secure title loans. Property that could be seized by the lender if the loan goes into default includes a house, jewelry, art work, boat, RV, other vehicles, business property, expensive vehicles, planes, condos, and other real estate properties. Since real estate and vehicles are some of the safest investments, many title loan borrowers choose them as collateral. But borrowers should bear in mind that the longer they take the loan, the more chances of losing the collateral. Click here for more info about the best loan lenders to look out for.
Interest RateIf you want a car title loan with low interest rate, you need to borrow money from a reliable lender with low interest rate. Lenders usually set their own interest rate. They will give an introductory interest rate for the first six months and then charge the normal interest rate. Before deciding on a particular lender, you should compare different lenders to find out which lender offers the lowest interest rate. Check out this post: https://en.wikipedia.org/wiki/Loan to discover more about this topic.