Maricor Bunal
For constantly busy people, having a car today is a necessity instead of a luxury. Traveling from your residence to your place of work can take hours if you use public transport. When you have a car, you can find other routes to reach your destination faster.
But cars are expensive, and often, car buyers look for a car loan or any vehicle loan so payment will be more manageable. A car is also a good collateral material if you need to finance an emergency or need a bigger capital for an entrepreneurial project.
Car loan without taking your car
Some loan companies take a vehicle as collateral for a loan. Other financial companies offer OR/CR car loan. It is an option where you can get a loan with your car as collateral. But the difference is that in this case, you get to keep your car, as your actual collateral is your car’s official receipt or certificate of registration. Isn’t this a better option?
Types of car accepted
Different types of vehicles can be accepted for an OR/CR car loan. The loan is more likely to be approved if the borrower owns a truck or car. It is also possible to get a higher loan amount if your vehicle is a truck or car. The loan amount will be smaller if your collateral is a motorcycle.
Keep in mind that there are also other factors that the financial institution considers when they process a car loan application. The condition of the car and your net income are key elements when the loan company processes and approves a car loan.
Conditions
If you are taking out a loan to pay-off the balance of your car payment with a financing company, Global Dominion Financing, Inc. says that they approve car financing loans when 60-80% of the payment has been paid. The company accepts vehicle models from 1996 and onwards. Submit the following:
- Basic personal information of the loan applicant
- Updated copy of the vehicle’s CR and OR
- Pictures and stencil of the car
- Bank or financial institution statement of account
Benefits
Availing of an OR/CR car loan is beneficial for many loan applicants. It’s not called car loan without taking your car for nothing.
- You can keep using your car, fund your current financial need and continue working to pay off your car loan.
- There is no credit check. You can avail of a car loan even if you have a bad credit score or you do not have any credit history.
- Loan processing is faster. The processing time is between 5-7 working days after payment of the processing fee of 5.5% of the loan plus P150 for Metro Manila and P200 for provincial areas.
- Minimal amount of requirement. You only need a valid driver’s license, proof of income, the car’s OR/CR and proof of billing.
- Lower interest rates. Interest rate is 2% for 2003 and above car models and 2.5% for models from 2002 and below.
An OR/CR car loan is a good option for people who need cash quickly. However, make sure that you seek assistance from loan experts. When you enter into a loan agreement, see to it that you read the fine print.
