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Although the decision to own a vehicle should be well-thought due to the investment associated with it, but it should not be a difficult one to make as it is an asset that relieves you of your transport discomforts. Not everybody can afford to save up a considerable cash amount for a new vehicle to purchase. Shoppers do have several options for financing a new or used vehicle. But buyers with limited credit face the complications of either not being able to accumulate funds at all or making an unsettling decision. PaisaDukan understands the value of a vehicle in your life and prevents you from taking any compromising decision associated with its purchase by providing the option of peer-to-peer auto loans.
An auto loan is a loan that person takes to purchase a motor vehicle. Auto loans are typically structured as instalment loans and are secured by the value of vehicle being purchased. A lender loans the borrower the cash it takes to purchase a vehicle. In return, the borrower agrees to pay back the lender the amount of the loan plus interest, usually in monthly payments, until the amount owed is fully paid off.
Generally an auto loan is a secured loan, where in the borrower provides a valuable item to serve as collateral. In case, the borrower is unable to pay back the loan, the lender can then seize the collateral and sell it in order to recoup their losses. Since auto loans are used to purchase motor vehicles, the vehicle that is being purchased itself serves as collateral. If a lender has to seize a borrower’s car due to non-payment of the loan, it is referred to as “repossession.” Until the loan is paid off, the borrower does not own the vehicle technically; but the lender does. Borrower needs to pay off the loan first to out rightly own the vehicle.
The best way to travel is in your own vehicle. PaisaDukan helps you fulfil your dream of owning a vehicle. The procedure for applying for an auto/ vehicle loan is very simple with us. One simply needs to get registered with us and fill out the simple application form. It is that easy. Then your financials would be analysed and accordingly the loan amount would be given to you.