Car Collateral Loans in South Africa
If you need funds for any reason, business or personal, and you own a car, you can unlock the value of the vehicle by applying for a car collateral loan.
This may suit you if you need fast access to cash, for example to cover an unexpected emergency or cash flow crisis, or to take advantage of an opportunity that you might otherwise miss.
What are car collateral loans?
A car collateral loan is a short-term, asset-based loan, secured by the value of a paid up motor vehicle. The vehicle may be a personal or company car, van, truck or motorcycle.
When can you use your car as collateral for a loan?
Provided you own your car, you can use it as collateral to borrow funds. One of the most convenient aspects of car collateral loans is you do not have to:
- submit bank statements or payslips
- be currently employed.
These criteria don’t apply because your vehicle serves as security for the loan.
How to get a loan using your car as collateral
The easiest way to secure a car collateral loan is to apply online, with a reputable financial services provider.
The loan you’re offered will depend on the vehicle’s appraised value, which will depend on factors like its make and model, year, mileage and condition. If you accept the loan terms, your vehicle is held in a secure facility for the agreed term.
Documents you’ll need to provide include the car’s registration documents, your ID and proof of residence.
The loan amount is electronically transferred into your bank account – typically on the same day you apply if paperwork is in order – and there are no restrictions on how you use the funds.
Benefits of business or personal car collateral loans
Advantages of car collateral loans include:
- No hidden fees
- No lending restrictions
- Guaranteed loan approval
- No early settlement penalties
- NCR compliant rates of interest
- Flexible payment periods
Where to apply for a loan using your car as collateral
With Pawn My Car, you can use a car that’s in your name to secure a car collateral loan quickly and easily, with no delays.
Pawn My Car is a well-established, reputable financial services provider, with physical branches across South Africa, and our interest rates comply with the National Credit Act.
For more information, contact us on 086 172 9648 or simply complete and submit our online application form.
