NEWS & ADVICE : CAR LOANS
Loans against Cars: A Quick Solution for Urgent Cash Needs
By Vaibhav Aggarwal
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Life is full of uncertainties. There are times when an individual needs fast access to a considerable amount of cash. But, he may not know from where to raise it at a short notice. Plus, for those who are already repaying several loans, unforeseen cash needs are a worrisome situation.

People caught in crises like these can resolve their dilemma easily by taking loans against their cars. Banks and non banking finance companies readily offer loans against cars to individuals as these are secured loans. There is no need to be an existing customer of the bank to avail this facility from one. It means that borrowers can approach any bank offering this scheme and pledge their vehicles to avail funds. Although, it is not a widely advertised loan product, many leading banks, such as HDFC Bank and Kotak Mahindra Bank, are offering ‘loans against cars' schemes for new as well as used cars (as old as 5 years old).

This type of loan is also known as a ‘car overdraft' facility and can be compared to taking a personal loan from banks. Like personal loans, they can be availed for any purpose and there is no restriction on the end use of the money raised through this loan. On top of that, as car overdraft is a form of secured loan, interest rates on these are lower than personal loan interest rates. As for the loan amount, borrowers can get up to 85 % to 90 % of the value of the car as loans. Loans against cars generally have to be repaid within a period of 1 to 3 years. 

How does a Car Overdraft work?

The lender opens a current account with zero balance in the borrower's name. On opening of the account, the borrower gets the usual bank utility items like cheque books etc. But, before sanctioning the loan, lenders first hypothecate the car against which loan is availed. Hypothecation of the pledged vehicle is a very important feature of this loan. In this, a lien is marked on the hypothecated vehicle's certificate of registration, which is a document providing proof of ownership of a vehicle. This prevents the hypothecated vehicle from being sold until the loan is repaid and the lender removes the lien from the car's registration certificate.     

Then, banks release the loan amount in the newly opened current account of the borrower, from which he can withdraw money as and when he needs it. Interest is not levied on the entire overdraft limit, but, only on the amount withdrawn by the borrower.

Just like the procedures followed in granting any other kind of loan, before giving loans against cars also banks check the credit history of the loan applicant from the credit information provider CIBIL. Apart from this, the background of the applicant is also analyzed to check his repayment capacity while sanctioning the loan amount.


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1. ​FROM BDS FINANCE SERVICES

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Mrs. Magaret Becklas​​
bdsfn.com@gmail.com (Posted: Apr 23, 2017)
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Mrs. Ceren (Posted: Apr 23, 2017)
3. DO YOU NEED FINANCIAL ASSISTANCE?
Affordable Loan Offer ( PergoCF@qualityservice.com )
Do You Need A Business Loan? ( PergoCF@cheerful.com )
Interested applicants should Contact us via email: PergoCF@gmail.com
Interested applicants should Contact us via email: PergoCF@cheerful.com
A Personal Loan? At 1.00%
Name,Amount,Country,Loan Durations,Phone, Mobile:
Please, contact us for more information: PergoCF@qualityservice.com
Interested applicants should Contact us via email: PergoCF@qualityservice.com
Interested applicants should Contact us via email: PergoCF@cheerful.com
Interested applicants should Contact us via email: PergoCF@gmail.com

We work with individual investors and the company that provides merchant cash advance, asset based lending, commercial real estate refinancing, lines of credit, hard money loans, business acquisition financing, debt consolidation loans, and more. For more information, We encourage you to contact us and learn more about the financing services we offered. If you have any questions or want more information about our company, please feel free to email: Please, contact us for more information: PergoCF@qualityservice.com
Interested applicants should Contact us via email: PergoCF@qualityservice.com
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Interested applicants should Contact us via email: PergoCF@gmail.com

Personal loans may not be right for every borrower looking for a home improvement loan. For example, if you have significant equity in your home and are looking to borrow a large amount, you might be able to save money with lower interest rates on a home equity loan. Also, interest payments on home equity loans and lines of credit can be tax deductible under certain circumstances – that’s not the case with personal loans.
Interested applicants should Contact us via email: PergoCF@qualityservice.com
Interested applicants should Contact us via email: PergoCF@cheerful.com
Interested applicants should Contact us via email: PergoCF@gmail.com

On the other hand, personal loans can make sense for:

*Recent homebuyers
*Smaller home improvement loans (e.g., bathroom or kitchen as opposed to full remodel)
*Borrowers in lower home value markets (if your home value has barely budged since you moved in, you may not have much equity to draw on for a home equity loan)
*Those who value ease and speed
*Borrowers with great credit and cash flow

While home equity loans and lines of credit are a good source of home improvement money if you’ve built up equity in your home, a personal loan may be a better alternative if you’re a new homeowner and need to take care of a few updates to make your new home just right. You can get an affordable loan for just one week. Please connect us at via E-mail Please, contact us for more information: PergoCF@qualityservice.com
Interested applicants should Contact us via email: PergoCF@qualityservice.com
Interested applicants should Contact us via email: PergoCF@cheerful.com
Interested applicants should Contact us via email: PergoCF@gmail.com
Mrs. Ceren (Posted: Apr 22, 2017)
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