What is the difference between the «car loan» and «credit under the security of a car»?

Very often people confuse the concepts of «car loan» and «loan on the security of a car.»

In our article we will help you to figure out what the difference is.

The car loan is considered a consumer loan, the funds of which will be directed only to buy a car. That is, it is impossible to purchase something else. While the amount of debt on the loan is not paid in full, the purchased car will be pledged by the bank.

After registration of the loan, the borrower receives a cherished car, but the bank takes on the storage of the TCP, so that the borrower cannot sell the car to the complete closing of the loan, thus providing a guarantee of fulfillment of obligations under the contract. If the borrower does not pay a loan, the bank can pick up the vehicle and sell it to cover the debt.

An important aspect of such a loan is the initial contribution. Also, the Bank may require the purchase of CASCO, but recently this type of car insurance is increasingly falling by banks for larger customers attracting.

On the hands of the borrower issued by the bank a payment schedule with fixed monthly amounts. Also, the borrower remains the right to early repayment of the car loan by making a partial or complete amount of debt balance.

The program is aimed at individuals. You can buy, like a new car, and supported. In the latter case, there are a number of auto requirements, such as the year of release. Standardly, banks say that the car should not be older than 3-5 years. More specific conditions for the purchase of a supported car can be found directly in the bank.

What about the loan secured by the car? — Here we will talk about the urgent cash receipt by two instruments. The first one is

In this case, you give a technical passport of the vehicle to the lender, but at the same time your car remains in complete disposal without the possibility of selling or donation.

The second option is a loan on the security of the car, when you leave your car on a specialized parking to the full debt repayment.

The interest rate depends on the term of the loan, the technical condition of the car and its year of its release on credit history in this case do not look at all.

The advantages in this form of obtaining funds are that the creditor is not at all important a goal of receiving money, you will not need to provide any documents from the place of work. The deadline may take the minimum time and immediately after assessing the car you get the required amount of money. The assessment passes very quickly and in this case the money can be obtained after a couple of hours.

If you want to get