(Newswire.net — June 6, 2017) — “Poor people are bonsai people. There is nothing wrong with their seeds. Only society never gave them a base to grow on.” – Muhammad Yunus, Creating a World Without Poverty: Social Business and the Future of Capitalism
Muhammad Yunus is known worldwide as the pioneer of the modern microfinance industry. In short, he is a Bangladeshi social entrepreneur, economist, and civil society leader who was awarded the Nobel Peace Prize in 2006 for pioneering the concepts of microfinance and microcredit. The citation attached to this award succinctly explains Yunus’s beliefs and reasons for establishing the microfinance industry. Ergo, “lasting peace cannot be achieved unless large population groups find ways in which to break out of poverty [and] across cultures and civilizations, Yunus… [has] shown that even the poorest of the poor can work to bring about their own development“
Car equity loans and the microfinance industry
The strict definition of a car equity loan is that it is a microloan; ergo it falls under the microcredit sector, and it is subject to the fiduciary governance by the USA federal microfinance industry. Additionally, car equity loans are becoming one of the most popular short-term loans available to the microfinance industry today. The only caveat is that the car equity loan applicant has to provide a fully paid-up car as well as the vehicle title deed as collateral for the loan. In short, if the borrower defaults on the loan repayments, the lender will foreclose on his vehicle to repay the loan. However, in an attempt to improve client relationships, many of the lenders are offering different options to consider when some repayment problems appear. It is always worth working with someone that has a good policy in place in the event something bad happens.
It is also worth noting that car equity loans are not legal in all American states. In summary, only 17 states such as Alabama, Arizona, New Mexico, Nevada, and Delaware, etc. have legalised vehicle equity loans. Furthermore, borrows can access microcredit by applying for loans that are not technically short-term or microloans in an additional four states; ergo, California, Kansas, Louisiana, and South Carolina.
Applying for a vehicle equity or vehicle title loan
It is fairly simple to apply for a vehicle equity loan. The first step is to submit an application (either online or at one of the lender’s offices) containing the following information:
- Personal details such as the applicant’s full name, address, and contact details such as phone number, etc.
- Vehicle make, model, and year.
- Up to date mileage on vehicle.
- Vehicle title deed that is fully owned by the applicant without any liens attached to it.
Once this application has been submitted, a loan specialist will review the application to generate a maximum loan amount, confirm that the details supplied with the application are valid, and finally, approve or deny the application.
It’s crucial to note that the loan amount is based on the fair market value of the vehicle that is submitted as collateral for the loan. Thus, it is important that a borrower provides accurate and up to date information; otherwise, the loan officer might deny the loan application. Furthermore, the vehicle has to be paid for, and there cannot be used as collateral for more than one loan simultaneously.