What Is an Instant Loan Against a Car and How Does It Work?

In today's fast-paced world, where speed is of the essence, many people find it challenging to wait for their loan application to be approved. This is where instant loans against a car come in handy. An instant loan against a car is a type of secured loan that allows you to obtain a loan against the value of your car quickly. In this article, we will discuss everything you need to know about instant loans against a car, including how they work, eligibility criteria, and more.

What is an instant loan against a car?

An instant loan against car is a loan that is secured against the value of your car. This means that you can obtain a loan based on the value of your car without having to sell it. This type of loan is ideal for people who need quick cash but do not want to sell their car. The loan amount that you can obtain depends on the value of your car.

How does it work?

The process of obtaining an instant loan against a car is relatively straightforward. The first step is to find a lender that offers this type of loan. Once you have found a lender, you will need to provide them with some basic information about your car, such as the make, model, and year of manufacture. The lender will use this information to determine the value of your car.

If your car meets the lender's eligibility criteria, they will approve your loan application. The lender will then hold on to your car's logbook as security until you repay the loan amount. You will also need to provide the lender with a spare key to your car.

Once your loan application is approved, the lender will transfer the loan amount to your bank account. You can use this money for any purpose, including paying bills, medical expenses, or even for a holiday.

Loan against car eligibility criteria

To be eligible for loan, you must meet specific loan against car eligibility criteria. These criteria may vary from lender to lender, but the following are the most common eligibility criteria:

1. Your vehicle must be registered in your name.
2. You must have a V5C logbook for your car in your name.
3. Your vehicle should not be more than 10 years old.
4. Your car should be clear of any outstanding finance or loans.
5. You must have a valid insurance policy for your car.
6. Your car should be in good condition and have a valid MOT certificate.

Advantages of an instant loan against a car

1. Fast approval process: One of the most significant advantages of instant loans against a car is that the approval process is quick. You can get the loan amount within a couple of hours of submitting your application.
   
   
2. No credit check required: With an instant loan against a car, you do not have to worry about your credit history. The loan is secured against your car, so your credit score does not matter.
   
   
3. Keep your car: You do not have to sell your car to get an instant loan. You can keep your car and still obtain the loan amount you need.
   
   
4. Flexible repayment options: Most lenders offer flexible repayment options for instant loans against a car. You can choose to repay the loan amount over a period of 12 months to 72 months.

Disadvantages of an instant loan against a car

1. High-interest rates: Since an instant loan against a car is a secured loan, the interest rates are typically higher than that of an unsecured loan.
   
   
2. Risk of losing your car: If you are unable to repay the loan amount, the lender may repossess your car to recover the amount owed.

Conclusion

In conclusion, an instant loan against a car is a quick and convenient way to obtain a loan based on the value of your car. The loan is secured against your car, so you do not have to worry about your credit history. However, it is essential to remember that this type of loan comes with higher interest rates and a risk of losing your car if you are unable to repay the loan amount. It is also crucial to ensure that you meet the eligibility criteria before applying for an instant loan against a car.