Loan against car in Kochi

What is loan against car?

Loan against car or car refinancing is additional funding that can be obtained from banks and other financial institutions that allows you to borrow money over and above your existing car loan. In practice, loan against car is the process of paying off your current car loan with a new one from your existing or new lender. Low-interest rates and nominal processing charges make loan against car preferable compared to a personal loan. We give you plenty of options from major lenders in Kochi if you are looking for loan against car.

Reasons to apply for loan against car

Cash in hand received from a loan against car can be used for various personal and professional financial needs. A few reasons to get a loan against car are:

1. Pay off expensive debts

   You can choose to avail a loan against your car to pay off other debts like credit card debts, personal loan, car loan and any other loan(s).

2. Business expansion

   Funding received from bank through a loan against your car is a great option when it comes to expanding your existing Business or starting something new of your own.

3. Meet other financial needs

   You can use the loan amount for family vacations, or to meet medical expenses, wedding expenses, educational expenses of your children, to fulfil working capital needs or other reasons

Benefits of loan against car

1. Higher loan amount

   Typically, a loan against car can be availed to the extent of 200% of the current value of your car. The cash in hand is higher if you have paid more Equated Monthly Instalments (EMIs) of your existing car loan.

2. Minimal documentation

   The documentation required to apply for a loan against car is minimal.For loan amounts under 10 lacs, most financiers don’t even ask for ITRs or Balance sheets.

3. Quicker processing

   Loan against car application is faster to process in banks. This is mainly because of the presence of an existing loan. Physical verification of your residence/office generally gets waived off.

4. Lower interest rate

   Interest rates for loan against car are much more attractive as compared to other kinds of unsecured loans, which makes it a cost-effective solution. Other alternatives for meeting your funding needs like personal loan or gold loan are provided at higher rates ranging from 16% to 24% per year.