Title loans are financial services that appeared relatively recently on the Polish market. Nevertheless, they quickly win their supporters because the banking sector is not as flexible in approaching the customer. Find out what title loans are for the car.
Definition of title loans. What are these loans?
The title loan market in our country is currently characterized by high growth dynamics, but it started to develop before less than a decade, mainly as a result of the development of information technology and the spread of the Internet. As an alternative to banking, title loans are transactions whose subject is certain financial resources, concluded by unrelated persons, individuals or companies. Only everyone knows about the existence of such loans. People still decide to borrow money from the family, but it is known that such loans adversely affect family relationships. The bad financial situation does not have to lead to a bad situation in the family. title loans are an option to raise funds directly from individuals and companies that have money and want to invest in this way, so as to get a profit. It is a form of depositing free funds for higher benefits than, for example, those from standard bank deposits.
Securing title loans
Title loans are granted at very favorable conditions for the borrower. For this reason, security is necessary. The security for a lender, in this case a private investor, may be a property, a house or a plot, or a car.
When it comes to private car loans, the so-called transfer to security This is done by securing the lender in the form of obtaining the borrower’s vehicle rights. At the moment when the loan is repaid in the time agreed by both parties, the transfer of ownership is lost. As a result, the borrower becomes a full, independent owner of the vehicle. However, in the event of loss of solvency, the debtor has the right to take over the car in its entirety to cover unpaid debt from its sale.
Who is the offer of title loans against the collateral of the vehicle addressed to?
The loans in question are addressed in particular to people:
- those who can not take advantage of the bank loan offer,
- who need a larger sum of money than the one offered by popular payday loans,
- wanting to spread the repayment of debt for a larger number of installments,
- owning a motor vehicle,
- wanting to skip banking procedures,
- who do not want to reveal the goal.
The banks’ requirements and the conditions imposed by these institutions are increasingly becoming an important barrier for those seeking cash injection. Water Dispenser ranges up to a few hundred at most, a maximum of several thousand zlotys. This sum is not always enough to cover the sudden expense. Banking procedures pose additional problems and extend the waiting period for funds to be credited to your account. Loans granted by banks are associated with the necessity to specify the subject of spending the funds by the borrower. Completely different rules appear in the case of title loans, especially when the car is secured.
Security of title loans. Are title loans secured against the car secure?
Many factors determine the safety of each loan. It should be noted, however, that private car loans stand out with a smaller burden on the household budget than a short-term loan for a high amount. All thanks to the possibility of spreading the debt into convenient installments. A longer repayment period means smaller installments, thanks to which the settlement of a financial liability has a greater chance of success.
title loans are secure, of course, if you read the terms and conditions and you will not have any problems with paying off your debt. You should simply analyze your financial options well and decide on this type of loan. In the event of a loss of financial liquidity and arrears with the repayment of a financial liability, the pledge of a car is less severe in consequences than the pledge of a flat or house.
Formalities when applying for a car loan. What conditions does the lender put in?
You do not have to worry that the lender will check your financial situation. It is understandable that it is not the best. After all, you need money, which means that you have financial problems. In this case, the car is an important safeguard. For this reason, the conditions are limited to the minimum, as well as formalities.
It is important that you are the sole owner of the car. It is necessary to have a current technical inspection and car insurance. Of course, for purely formal reasons, you must have a valid ID card and be at least 18 years of age.
Simplified formalities relate in particular to the lack of necessity to submit a certificate of income from the workplace. In addition, all matters related to granting the loan are settled via the Internet. Of course, it is necessary to visit the communication department of the commune office in order to add the lender as a co-owner of the vehicle (it becomes 51% of it). This is not usually a big problem. One visit when granting the loan and one after paying off the debt is enough.
Importantly, title loans secured against the car are even indebted. This is an opportunity for people entered in the debtors’ register. The amount of the loan granted depends on the value of the car. The more your car is worth, the more you can count on the greater amount of the loan.