By: Alfred Madrona
Submitted: 2010-05-18 03:08:46 | Word Count: 582
Getting a car of your own choice has always been like a dream for all the middle class people since cars are not affordable by everyone. But, with the advancement and rising living standard of people, cars have no more been luxurious things now. Rather they have become a necessity in today’s era. Everybody needs a car when he wants to go out with his family, in times of emergency or any such situation. Due to inflation it is not at all possible for common man to afford car from his fixed monthly salary when he has so many other emergency expenses. Thus, he certainly requires some financial help. To help out people car loans have been introduced in the financial market which helps people in buying a car of their own.
The two types of car loans are secured and unsecured. In the case of secured loans, the borrower has to place any of his valuable assets as collateral against the loan. This benefits the borrower with lower interest rate and larger loan amount. This is because the lender feels secure in this case if the borrower fails to repay the entire loan amount by the time as he can recover his money on the basis of the collateral. The other loan is the unsecured loan. As the name suggests, in this type of the loan the borrower is not required to place any of his valuable assets as security against the loan. Thus, the lender here imposes higher rate of interest on the loan and provides the borrower with lesser loan amount in comparison with the secured loans. This is because the lender in this case is at risk if the borrower fails to repay the entire loan by the fixed time. Thus, to make himself secure to some extent, he imposes higher interest rate on the loan. The repayment time for these loans ranges from 5 to 7 years. These loans can be used to buy new as well as old car. The only condition is that the car should not be more than 5 years old. The borrowers having bad credit like CCJ’s, bankruptcy, arrears, defaults, late payments etc. can also avail these loans. This way they get a chance to improve their credit score by repaying the loan in fixed time duration. Conditions that must be satisfied before the borrower apply for these loans are that he must have age above 18 years, must possess an active bank account, and must have a UK citizenship and employment proof. If the borrower fails to repay the loan in regular installments every month, then the lender takes away the car and returns it only when the whole amount of money is returned back. These loans are less time consuming as the paper-work is skipped-off.
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Good internet searching can let you grab the best deal ever. Also, you need not stand anymore in the long queues for the approval of your loan. You can get a loan by sitting at your place only. You have to fill a form online and the desired amount will be transferred to your account very soon. Thus what are you waiting for? Apply for the car loans and get your car of your own choice as soon as possible.
