- Automotive

Reasons Why Car Pawning is Better Than Traditional Loans


Many people are still not aware about car pawn loan. Now, you can get a loan by pawning your car, i.e. by keeping it as a guarantee or collateral. After which, the lender will grant you the loan and after the complete repayment of the loan along with interest, you can get back your car. Also, in many cases there is no need for you to give away the car, as there are many lenders who allow you to keep the car & repay the loan. But, in case if you do not repay the loan, then they come back and take the car. Your authentic address verification, car verification and any pending loans on the car, all will be verified by them before giving you the loan. Check here, จำนำรถรังสิต, to get a car pawn loan. Moreover, car pawn loan is one of the best options for people, who don’t want to go through the traditional loan process.

Pawning a Car in SA: Is it Safe?

Traditional Loan Process & Car Pawning 

One of the demerits of the traditional loan system is that it takes too long for the loaning process and for the amount to get reflected in the account. There are too many papers works and hassles that you have face including the interview and their (traditional bank lenders) interference in your financial status, spending and others. But that’s not the case with the car pawn loan. Moreover, in traditional banks the interest rates on personal loans will be high. Whereas, in the car pawning the lenders keep a low interest rate. And, in a car pawning, you should be the owner of the car, legal one, and there should be no loans on the car that you are about to pawn with the pawn lenders.

Working of Car Pawning 

In a car pawning, when you give the car as a guarantee or a collateral, & the car meets the eligibility criteria, then the loan in a car pawn is granted within 24 hours. The amount will be quickly reflected in the borrower’s account. Plus, in some cases the car is kept with the lender, until the loan is re-paid. In some cases, the lenders don’t even bother to keep the car, and you can keep the car for commute purpose, provided there is an auto-debit from your account of the loan amount. Besides that, a car pawn broker is the one who is an accredited, and non-banking institution, who can offer a loan amount of up to 75% the value of the pawned car. The documents that are needed for car pawn service is the identity of the legal owner of the car, the car registration number and car identity card, like VIN number and so on.

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