On behalf of Great Loan Finance, we welcome you to a new entry on this website where you will find information related to our services; In this publication we will talk about the loans, we will also explain more about our car loan service.
What are loans and why should you apply for car loans?
A loan consists of a transaction with which a lessee grants a service to a beneficiary by means of contracts or pre-established agreements, mostly before the operation, usually a loan can be made in the short, medium or long term depending on the agreements of the parties, must also be guaranteed by both parties. Loans by definition can be thought of as advance payments on some material value or merchandise, although that term can also refer to cash that is ceded to a line of credit established previously by a bank or institution, as well as individuals. charge of getting specific loans. Loans, in most cases, depend on the consumer having previous payroll and employment records
Avoid a financial phenomenon known as usury
In most cases, we seek to avoid a financial phenomenon known as usury, which is understood as unreasonable and excessive interest rates, since there are jurisdictions that limit the annual percentage rate that any lender can charge. There are many different ways to calculate the annual percentage rate of a loan, all this depends a lot on the method used, because a calculated rate can differ dramatically depends on the uses, terms and conditions of it; an example of this may be a charge of $ 150 on a payday loan of $ 1000 to 14 days, with this operation (from the perspective of the borrower) basically anywhere from 391% to 3.733%. In general, a basic loan process involves a lender who provides a guaranteed loan in the short, medium or long term, which will be reimbursed in the payment period agreed with the borrower.
In all cases, or mostly, it is about verifying employment or income through payment stubs and bank statements, as well as tax receipts and other types of papers certifying that the person requesting a loan is within of the legal demarcations that the law sets, although there are also cases in which some lenders do not verify the income or perform credit checks. There are also franchises and individual companies that have their own subscription criteria although they are not far from the demarcations that are considered by law.
Post-dated check to the lender for the full amount of the loan
When all the requirements for obtaining a loan are met, the borrower usually writes a post-dated check to the lender for the full amount of the loan, plus the fees and interest. Once this initial contract is established, an expiration date is established, in which the borrower is expected to return to the bank or loan center to pay the agreed amount in person or deposit it in electronic accounts in the periods and dates established. The security clauses of these contracts establish that in case the borrower does not pay the loan, the lender can resort to legal elements, as can also resort to other types of collections such as property and property; In addition to breaching the terms, the borrower may face a bounced check rate from his bank plus he would have to cover the total costs of the loan, at the same time the loan may incur additional fees or a higher interest rate (or both) as a result of non-payment.
In the most recent innovation of loans, that is, online processes, consumers complete the loan application (or in some cases via fax, especially when documentation is required although this method is no longer very common), all this from anywhere and without the need to go to the loan houses, banks or with the individual agents in charge of verifying these procedures. These funds are transferred by direct deposit to the borrower’s account, and the loan repayment and / or financial charge is electronically withdrawn on the next payday of the borrower. For this process to be truthful and continuous, there is a law of loans in general, which prohibits debt collectors from using abusive, unfair and deceptive practices to charge debtors; Such practices include calling before eight o’clock in the morning or after nine o’clock at night, or calling debtors during work hours. In many cases, borrowers write a check with a later date to the lender; If the borrowers do not have enough money in their account by the check date, their check will bounce.
There are other options available to most loan clients
These include loans from credit unions with lower interest rates and stricter conditions, which take longer to obtain approval, as well as car loans , protection against bank overdrafts, cash advances of credit cards, community assistance emergency plans, small consumer loans, installment loans and direct loans from family or friends, etc.
With respect to loans on cars , these consist in that a consumer who owns his own vehicle, obtains by means of the guarantee of this a title loan since the auto title loans use the capital of the vehicle as credit instead of the payment history and employment history. This type of loans is insured by the borrower’s car, but they are available only to borrowers who have a clear title (ie, no other loan) for a vehicle. The maximum loan amount is a fraction of the car’s resale value. If the borrower defaults, then the lender may try to recover the costs by reselling the car.
Although in specific cases of companies such as Great Loan Finance, where we offer attractive payment facilities and obtaining loans on cars , since we offer up to 60% on the value of your car, we do this in quick and simple procedures with the advantage of that you will never stop driving your car, because the guarantee of the debts is solved with the invoice of your car with minimum requirements, that practically any person can meet to get out of an economic trouble when they need it.
Do not forget to contact us if you need a quick loan, leaving your car as collateral, without needing to stay in shelter with us so they can continue using it until they meet the debt. Contact Us!