Sometimes it happens that you are planning to buy a new car but your financial situation is not allowing you for that. You may try to gather funds from outside but at the end of the day you find that you need some more cash to finalize the deal. In such cases if you are unable to manage the amount at your own, small auto loans are the ultimate options that you may go for. These loans patch up the gap of your pocket and allow you to buy your dream car.Small auto loans are available in secured and unsecured nature. For secured option you have to place any of your assets as the collateral for the loan. You can place your home or important documents as the collateral. Most of the auto loans are secured with the same car the borrower wants to buy. Papers of the car remains with the lender until the loan are repaid fully. Unsecured option is good for the tenants as there is no need to place any collateral.
The loan amounts you can borrow through these loans depend on the car you want to buy and how much you can pay by yourself for the car. The loan amount also depends on the fact that whether the borrower wants to buy a new car or a used car. The interest rate depends on the loan term. Long tenure lowers the interest rate. Short term varies from 3 year to 5 years. Long term is 5 years onwards.
These auto loans have some eligibility conditions. The borrower should be a valid citizen of
Small auto loans are offered by financial institutes. But online lenders are fast in approving these loans.
Carney Alden is a Masters in Accounting and Financial Management from
