To some borrowers, it does not sound very convincing when they are asked to pledge security for a car loan. They want to build up one asset and thus, may not like pledging another for that. So to avail money, such borrowers can opt for unsecured car loan. This does not demand any collateral to borrow money from the lender.
provides all the money that is required to buy the car that the borrower wants. It will also enable the borrower to buy accessories for his car. But before that, the borrower has to decide what kind of car he wants to buy. The make of the car, the brand, model etc are to be decided beforehand by the borrower.
Not pledging collateral means that the borrower does not have to risk any of his assets to buy the car. So he can fearlessly go ahead with the unsecured car loan and plan for his new car. Although there is no collateral attached, the borrower should not take the repayment of the loan casually. If there is a failure in repayments, then the lender of unsecured car loan may resort to legal ways of recovering his money.
Unsecured car loan has to be repaid in duration of 2-5 years. Due to the loan being unsecured, a higher rate of interest is charged. To lower the rate that is being offered, it is suggested that the borrower make a search online. Many lenders of unsecured car loan are ready to cut down their rates because of the stiff competition in the online market.
Some basic criteria are required to be fulfilled when applying for an unsecured car loan. They are:
&bull Regular employment
&bull Regular monthly cash inflow
&bull Residence proof
&bull Age proof of over 18 years
Unsecured car loan relieves the borrower from placement of security while borrowing money for a car. This way, borrowers not willing to pledge collateral can buy a car with ease.
