People who do not own a home find it tough to purchase a car as they cannot go for car loans that are secured against home equity. Unsecured car loan is the ultimate choice for the tenants and non homeowners.
An unsecured car loan is offered to the applicants who aspire to own a home. These loans are designed for both the tenants as well as the homeowners who do not have or do not want to attach any asset as an obligation. Through these loans a borrower gets an option to either purchase a new car or an old car. However if the borrower aspires to own a car through old car finance then he must make a note that the car should not be more than 5 years old.
Unsecured car loans allow a borrower to attain a loan amount depending on his/her income and repayment ability. In addition to it, the amount, down-payment and the interest rate also depends on a number of factors including car model, income, credit history and whether the car is old or new. Unsecured Car loans are usually short term loans with repayment terms of 2-7 years.
Having a bad credit due to CCJs, defaults, IVA, bankruptcy, arrears or missed payments does not restrict you from availing an unsecured car loan. The borrowers with bad credit history or no credit history can easily own a car through these loans.
Unsecured car loan is an excellent alternative to finance a car. These loans provide benefits like-
- Collateral free.
- Low competitive rates.
- Quite flexible.
- Allows you to raise money quickly.
- Time saving.
- Easy to apply.
Thus, unsecured car loans are getting popular among the people as they offer innumerable benefits to its borrowers and have simplified the process of owing a car.
Summary
Unsecured car loans are designed for both the tenants and the homeowners. These can be attained to purchase a new or an old car depending upon your needs and budget.