It is always suggested to maintain a barrier for wet days. But if you do not have any type of financial savings to fall back upon in instances of an emergency like hospitalization or job loss, then your possessions can come helpful in these situations.
Like, gold, as well as fixed deposits, your vehicle can additionally get you an emergency car loan. A vehicle proprietor can get fast funds against the protection of his vehicle.
Financing can be availed at a fast pace and a reasonably less expensive interest rate as compared to individual funding.
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Here is all you require to understand about car loans against vehicles.
One can get funding against his vehicle if it is less than 5 years old. Usually, banks offer between 50% to 150% of the marketplace worth of the automobile as lending. While the interest rate on these funding varies between 11% to 16%, financial institutions also bill a handling charge between 1-3% of the lending amount. Funding against automobiles can be considered a period of 1 to 5 years.
How to avail car loan against vehicles
The applicant needs to visit a bank to make use of funding against his vehicles. A lending application form needs to be filled up which requests for details such as auto make, year of manufacture, design, the objective of car loan, personal/professional. Once you fill in this information, a financial institution executive approaches the candidate to complete the procedures. You need to submit all needed records to the bank executive.
- Records needed
The lending applicant requires to submit documents relevant records with various other papers like bank declarations for the last 6 months, duplicates of tax returns for the last 2 to 3 years.
As soon as you send all the required records, a confirmation and assessment process are started by the finance/bank-firm to arrive at the current value of the vehicles. The car loan has selected the basis of this value.