When it comes to loan the contract should be such that neither the lender has to lose anything nor the borrower go through pain in repaying the debt. Everybody requires loan because it is such a good medium by which people can get back to their financial stability when going through tough times. But with plethora of loan alternatives available in the market it is better to do some research before heading on to opt for a loan. This is because what might look to you as the best loan option might end up as a mess making you regret your decision.
So today we will analyze why car title loans which has become so popular over the years due to many reasons is a better option to choose than other micro finances:
Low rate of interest: The main thing a borrower has to take into account is the interest rate that the lender is going to charge. This is important because if you require a loan amount that is into thousands of dollar then you will end up paying a hefty amount of money just as interest which if you could save can easily get you back to a stable financial situation. This makes car title loans Los Angeles, CA an ideal loan for you because the rate of interest is low as compared to other micro finances alternatives like payday loans. So what happens is that your interest rate doesn’t put a lot of burden on you and you can use the loan amount in stabilizing your financial situation.
Paperwork Required: It has been seen that though other micro finance institutions sanction quick loan without much paperwork but the terms and conditions that they put both on and off the contract are not something everybody will be pleased with. So what happens is that when a borrower is unable to repay the loan amount he has to pay more than what he would have paid if he would have kept on repaying the premium without any lag. But this is not the case with car title loan because not only the paperwork is kept to minimum but the loan sanction process is super quick. Beside this there are no unseen consequences a borrower has to bear because all that can happen in baddest situation is that the car will be put on sale by the lender if the borrower doesn’t pay loan premium on time.
Loan Amount: Other micro finance institutions cannot match the amount of loan that can be sanctioned by car title loan service provider. This is because other micro finance institutions can only give loan up to some thousand whereas the car title loan amount can be as high as $50,000 based on the value of the vehicle of the loan applicant. This is a huge sum of money to cater to any kind of financial situation. Beside this the low rate of interest as stated above also makes the loan quite affordable for the borrower. There is no micro finance institution that can sanction so much amount without doing humongous paperwork and keeping something as guarantee from the borrower.