May be you genuinely need a vehicle or take a fancy on it. Whatever it is, a car is not what everyone can easily afford. A purchase plan is put on hold due to high expenses and long procedural work for loan approval. An alternative way is to apply for a low rate instant auto loan. Requisite fund is processed quickly and low rate makes the installment affordable on one’s pocket.
The title of the loan is enough to clarify its purpose. It offers two major benefits sought by the potential borrowers. First of all, the loan is processed very fast, thereby relieving you from the trouble of waiting long secondly, poor interest makes monthly installment easily manageable.
Why interest rate is so small
Several reasons can be held responsible for that. Low rate interest loan comes under the ‘secured loan’ category and so is granted against collateral in the form of your house or vehicle title papers. Just because the loan is backed by high-value collateral, a heavy sum can be borrowed with an agreement for long duration of loan repayment. The monthly pay-off margin drops down to an easy-to-afford figure as payment is spread over a long duration. Just like any secured loan, this too comes at a cheaper interest rate.
An unsecured auto loan also comes at a lower interest rate. It does not involve collateral and so there is no risk of property repossession if the monthly payment is missed. Though you can get a lower interest rate but that will be much higher than what comes with a secured loan. Another disadvantage of unsecured version is there will be a shorter duration of loan repayment.
The unsecured loan providers take more risk and so ask for multiple documents from the borrowers to be sure about timely payoff. The first thing you will be asked to submit is your income proof. Loan will be granted only if you are among high-income bracket. This is because the lender will have some assurance that you have enough resources to pay off in time.
Instant approval is the major draw for loan seekers
Both secured and unsecured varieties are approved immediately. Secured loan is comparatively cheaper as compared to unsecured option if both varieties are compared side by side. The reason behind quick approval is that least paper work is required by the lender. Minimum documentation saves both money and time which make the loan much cheaper and get it instantly approved. Unsecured loan is approved more instantly as there is no need for property appraisal.
Can I get it with bad credit?
Yes, you can. Bad credit is not a big issue in getting low rate car loan. However, you need to work hard to convince the lender regarding your repayment ability and genuine intention in paying back. Approach the lender with a good repayment plan. The lenders won’t give much attention to your bad credit standing as the loan is already secured by the estimated value of your asset placed as collateral.