Car Loan Guarantee: Is It Worth Doing?

Achieving dreams is one of the main goals of anyone. Whether traveling, entering a property, starting a business, renovating the house, etc., but all involves money. Generally, the amounts are high to be able to take that first step, which ultimately delays many people’s plans.

Bank and finance lending has helped a lot of people today, but much of it includes high rates and interest that can hurt the contractor’s financial situation in the future. In addition, the need for proof of income and the analysis of the applicant’s name, finally avoided the granting of high values ​​for loan, which decreases the plans of each.

With this in mind, a new form of loan has been created: the collateralised car loan, which has the attraction of granting large sums for large projects. Increasingly, this has been the choice of consumers who own a vehicle in their name and are looking for large loan values.

Secured Vehicle Loan – How Does It Work?

Secured Vehicle Loan - How Does It Work?

This credit works through the possession of an applicant’s vehicle, be it a car, truck or bus, which serves as collateral for the payment of the credit granted. That is, you ensure payment with your vehicle through a contract.

With this mode, you get the credit you need at reduced rates and the good remains in your possession and you can use it normally. This is because the property is in chat mortgage, which means that the car is in the name of the company, but the direct ownership is the owner. Therefore, the same can enjoy the good the same way.

Among the documents required to claim this line of credit are:

• ID and CPF or driver’s license

• Vehicle National Registration Certificate (CRV)

• Vehicle Single Transfer Document (DUT)

• Proof of income

• Proof of address

After verification of the documentation, the bank will review the credit and the legal and inspection of the vehicle, then sign the loan agreement and release the money in your account.

Many people resort to this credit as a way to realize their dreams and even to pay off debt from another line of credit, for example. Because it has several advantages this has been a very suitable option for those who fit the conditions and objectives mentioned. Check out the main benefits now:

More attractive interest rates

More attractive interest rates

One of the main benefits of this modality is that the bank does not charge such high interest rates, since the car as collateral decreases the possibility of default and financial loss for the financial institution.

High loan values

High loan values

As already mentioned, most people seek this type of loan because they need larger amounts of money. You can get over USD 20,000 by repaying the financing in small installments that will not hurt your budget. In addition, the chances of running into loan debt are also lower.

Are you looking for a private payroll loan? Contact us for more information.