There is no need to pay any amount for security or give the security of a person in unsecured car loan. The things that get consideration if you apply for unsecured loan your financial status, your credit history that means whether your have taken any loan other than this one before or nor or if you have had taken it how regular you were in paying the installments, your current employment that will show whether you are capable enough to pay back the loan or not, and your income statements will tell how much you are earning. All these things will work as guarantee that you will pay the loan. Dealers do not give these types of loans very easily because there is no guarantor or form of one. This type of loans prove very much risky for lender because he will not have anything to sell in case debtor fails to pay the amount of debt so they put the higher amount of compensation instead.
These loans do have many benefits especially if do not own a house. People who are living in rented homes can get finance for their vehicles through this process, the only thing they will need is a high credit score. These loans also prove very beneficial if the owner of a home do not put the papers of your home as a security for the car. There is no need to assess the valuation of the home or the property because you are not going to pledge, it makes the process of getting the loan very easy and fast.
You will have to plan the method of giving the monthly installments and how much longer you want to take the loan and will have to prepare yourself for that, because the interest rate and the term of the application will be fixed. People who are living on pension or any other type of financial support can also apply for this loan to have their own car but there are some other criteria through which you will be eligible for it and that is the debtor should be older than 18 years and he should be working full time. If you are trying to purchase a used car the loan will not be given if he age of the car is more than five years.
The first thing you will have to do when you think to get a unsecured loan for your car is to find out the lenders who will be willing to give it to you, you can ask about them on showrooms but the best and easiest way is internet. Choose more than one lender and ask them for the quotes of the rates and the installments they are willing to give and choose the one which will be more comfortable according to your requirement.
You will have to give a copy of your credit history, make sure it is correct and perfect before you hand it over to your lender. Usually these lenders give you 90% of the amount of the car.
