Something has come up for which you need more cash than you have, and you need it right away. Well, if you’re a Hoosier State resident, you can likely get what’s called a vehicle title loan to see you through. All you essentially need is a vehicle, the title to it, and loan repayment ability.
With that said, here are the benefits of a title loan in Indiana.
What is a Title Loan?
This is a short-term loan that’s secured by your vehicle, which you can continue to keep and use as you regularly would while making on-time payments. That’s a huge benefit right there. You need only relinquish your title to the lender until the loan’s repaid.
Also, most lenders will accept as collateral your boat, RV, or motorcycle, in addition to your car or truck.
Most loan terms are 15 to 30 days, although months-long installments are not unheard of. You must be sure to make your payments as agreed, though, since if you do not, your lender can seize and sell your vehicle.
Is There a Loan Limit?
It depends on the state, and in Indiana, you can anticipate getting between 25% and 50% of your vehicle’s value, which is determined by the lender based on the vehicle’s make, model, age, condition, and mileage. If it’s been modified or altered, that will be considered as well. Sometimes, even the trim level will make a difference.
The amount offered to you will also be decided based on your income and ability to pay the loan back. With that said, most title loans are between $100 and $10,000, with $1,000 being the average.
Another major benefit of title loans is that they are not contingent upon your credit history. Unlike most bank loans, title loans are secured loans. So, lenders, even if they run a check, aren’t too worried about your credit score. In fact, another benefit with these loans is that, by making timely payments, your credit will likely get a boost.
What is Required of Me?
In addition to a paid-off car in your name and a lien-free title, you’re required to prove that you have regular and sufficient income. This can be in the form of pay stubs or bank statements. And if you do not have a job, don’t panic; if you have an alternate income source, say from disability, a rental property, Social Security, worker’s compensation, or a retirement fund, you’ll likely be good to go.
You also must submit with your loan application recent, quality photos of your vehicle from all four angles, plus the hood and rear. Inside, you’ll need clear shots of the odometer and vehicle identification number.
For title loans in Indiana, you also must be at least 18 years old and have a government-issued photo identification. Some lenders have other requirements including proof of vehicle insurance, proof of residence, and personal or professional references.
How Fast Can I Get Cash?
You can apply online from the comfort of your home or office and expect to get a decision that day. Because the loans are secured, approval rates are high. Once you are approved, most loan funds are disbursed on the next business day.
In Indiana, you’ll likely have options including direct deposit, wire transfer, in-person pick up, or an overnight check.
So, the benefits of a title loan in Indiana are indeed manifold. If you have a car in your name, a clear title to it, and sufficient income, you should be all set. Just first be positive you can pay the loan back.