Los Angeles, CA -- (SBWIRE) -- 05/16/2012 -- The banks and financial institutions are always coming up with new plans, services to attract potential customers and generate business. A car title loan is one such innovative plan that can be extremely useful to the common man in need to funds. A car title loan is the perfect solution in case of financial emergency or if the applicant wishes to use the money for some other personal use. The banks and financial institutions offer online car title loans to the applicants. The loan amount has to be paid within the stipulated time with interest.
A car title loan allows one to borrow money from bank against the vehicle that he/she owns. The borrower has to submit the car title and a set of car keys as security to get the car title loan sanctioned. In worst case scenario, if the borrower is unable to repay the amount within the stipulated time (that is usually one month), the bank has all the rights to take away the car and sell it off to recover the loan amount. There are few documents such as Income statement, age proof, identity proof that are required to be submitted before getting the loan sanctioned by the bank.
An applicant who does not have sound credit history can also apply for this loan. The loan amount depends on the market value of the car and not on the credit history of the applicant. If the loan amount is paid on time, the bank returns the title of the car and the car keys. If the borrower fails to pay back within one month, the payment period can be further extended for a month; this is called the roll over period. However, during the roll-over period, the interest rate which is already high goes up further. If the borrower is unable to pay the loan even after the roll over period, the bank has all the rights to confiscate the vehicle and sell it to recover the loan amount. A car title loan is a short term loan and the objective is such that the banks and financial institutions do not need to check the credit history of the borrower.
As a customer, before applying for the loan one needs to go through the terms and conditions to be able to take a sound decision. There are banks that let customers apply online. The applicant needs to fill up the online form mentioning the required details for applying for the car title loan. http://www.tfciloan.com/ is one of the websites where you will get all information related to car title loan, to be able to reap the benefits of it.