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INTRODUCTION A title loan on car in the United States is called the pink slip loan, an auto title loan, or is simply called the title loan. These types of loans are much secured and then the vehicle can be called collateral by the borrower. A lien is placed on the title car of the borrower by the lender. The borrower, at first has to give their vehicles hard copy for the loan they have taken. After the borrower repays the title loan on car the lien is removed from the car and the car returns to its owner. If the borrower is not able to repay his debt then the lender has full rights to sell the car or possess it in order to get amount which he had lent. The interest of the title loan on car is very high and the debt is to be paid in short term process. Credit history of the borrower is not checked the lender is only concerned with the type of car for which he is borrowing the money and the condition of the car. Though there is a security to the lenders yet they argue for high interest for the money which they are lending and they say that this type of interest is necessary. On amount which is very small like $100 the loan is granted within a small time, say within a time of 15 minutes or even less. Many institutions do not lend money less than $1000 because they think that the deal would then become very risky and there will be a chance of loss. Some of the lenders only lend money to those people who have some source of income and thus will be able to repay their loan. The credit score of the borrower is not considered generally. HISTORY In 1990 title loan on car was first born. It became very popular among the people of middle class and lower credit. There is a security to the lender that if the borrower is not able to repay the loan then the lender can take his car. For this reason the borrower also used to pay the loan by default. PROCESS The service of a lender will be sought at a store or online. The borrower has to fill a certain identification form for getting title loan on car. They have to give the lenders some kind of ID proof like either they have to give the driver's license, proof income or some legal proof of that sort. After this the lender will lend money to the borrower and the borrower has to repay the money with interests in short term. If the borrower fails to repay the loan then the lender will have the right to take his car and possess it or he can sell it away according to his wishes. LOAN CALCULATION The amount of loan lent to a borrower depends on the type of car which he is borrowing. At first the auction value of the car is calculated by the lender and the lender lends the money which is collateral to that amount. This helps the lender to make profit by lending money to the borrower. CONCLUSION Title loan on car has really helped the middle class people. For this loan the middle class people can buy cars and the lenders can make profit by lending money to the borrowers. For more information about Title Loan for Instant Auto Title Loans and Instant Cash Loans browse through title loan on car or visit at www.instantautotitleloans.com
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