Nowadays, there are several loan options, unlike in the past when there were traditional and stringent loans. If you own a business, there’s a working capital loan, quick loans for emergencies, car loans to buy a car, etc. They are more flexible and have purpose-centric loan terms. However, financial constraints may also rule out these options.
You must be wondering then which door to turn to when buying a car. Well, you can get it financed through an NBFC. Yes, you can get a loan against a car that you have not even purchased completely yet. Moreover, with the emerging trend of loan apps, it has become easier to access such loans.
Let’s find out how borrowing against your car is a smart financial decision.
Understanding What Is a Loan Against a Car
You might be surprised to learn that your car can be a valuable asset not just for getting you to places but also for being used as collateral. This concept is known as a loan against a car. Like a regular car loan, you don’t borrow to buy a car here. However, a loan against a car allows you to leverage your car’s existing value to secure financing from an NBFC. This can be a game-changer, especially when unexpected expenses arise, or other loan options feel restrictive.
How to Apply for a Loan Against a Car?
Applying for a loan with a car as collateral is a very straightforward process, especially with car loan apps. Here’s a step-by-step guide:
- Step 1: Evaluating Your Car’s Value
If you’re applying for a loan with your car as collateral, then make sure that you get an accurate estimate of your car’s present market value. It will give you an idea of how much you can borrow.
- Step 2: Choose a Reputable Lender
Do extensive research about various NBFCs and compare their interest rates, terms, and customer reviews.
- Step 3: Use a Car Loan App
Using a car loan app simplifies the application process. These apps are available online and allow you to opt for a loan, track the application status, and manage repayments all from your smartphone.
- Step 4: Submit Required Documents
You will need to provide a few documents, such as car registration papers, proof of ownership, personal identification, andproof of income.
- Step 5: Get Approval and Disbursement
Once your application is accepted, the loan amount is disbursed, typically within a few days. The funds can be used for any financial need, from any combined debt to funding a major purchase.
Benefits of Using a Car Loan App
In the digital era, utilising a loan app can provide several benefits, such as:
- Speed and Convenience: Applying through a loan app automatically saves you time. You can easily complete the entire process from wherever you are.
- Real-time Tracking: Apps that provide a real-time update on your application status and repayment schedule are really advantageous.
- Paperless Processing: Most car loan apps support paperless documentation, which makes the process eco-friendly and efficient.
- Advanced Security: Well esteemed NBFC loan apps use advanced security measures to protect financial information.
Tips for Managing a Loan Against a Car
While a loan against a car is a smart financial move, it’s necessary to manage it responsibly. Hence, here are a few tips to maintain it:
- Keeping track of Repayments: Your car loan app offers reminders and alerts to keep you updated about your repayments.
- Avoid Over-Borrowing: Make sure to borrow what you need and what you can repay without any issues.
- Contemplate Loan Refining: If you can find a better interest rate or you need to adjust your repayment terms, then considering your loan can be a good idea.
Accelerate Your Financial Goals with a Loan Against Your Car
Taking a loan against a car is an efficient way to access funds when needed. Moreover, using an app for the same can enhance the experience by providing convenience, security, and real-time management of your loan. However, you must choose the loan app of a reliable NBFC.
By choosing respectable lenders like Tata Capital and managing your loan responsibly, you can make the most of this financial tool. You can explore their offers while taking advantage of their loan app and drive your finances forward with confidence.
Get Tata Capital’s official loan app to get that loan against a car today!
