Secured loans have advantages over conventional consumer loans. Since such loans are associated with much lower risks for the lender, conditions (and in particular interest rates) are usually more favorable here. In recent years, mortgage loans under a vehicle passport (PTS) have been popular. We will figure out how a loan for documents for a car works, and how such loans are beneficial for borrowers.
What is a loan under TCP
Financial companies offer two types of secured loans to motorists. The first is loans directly secured by a car, which in this case is placed in a guarded parking lot for the entire duration of the loan agreement. The second is loans for a vehicle passport. In this case, the car remains with the owner, and minor restrictions are imposed on it (the car cannot be sold or donated until the loan is fully paid).
Loans on the security of documents for cars today are issued by many banks, microfinance companies, as well as specialized car pawnshops. The maximum loan amount depends primarily on the appraised value of the car. As a rule, car pawnshop companies are ready to lend an amount of up to 60-80% of the appraised value of the vehicle.
- The car remains with you and can be used under normal conditions.
- The ability to quickly borrow a fairly large amount (up to 500,000, and sometimes 1,000,000 rubles).
- Most loans are issued without a 2-NDFL certificate, as well as other documents confirming the client’s solvency.
- Both a foreign car and a domestic car in normal technical condition can be used as collateral.
- Fast consideration of applications. The required amount can be received on the day of application.
Bank or car pawnshop?
This question is asked by every car owner who for the first time decided to take out a loan under a vehicle passport. Perhaps the only argument in favor of banks will be a more favorable interest rate. On average, it is 7.5-8%.
But the number of minuses here is impressive.
- Banks are very demanding about potential borrowers. Even in the case of secured lending, it is almost impossible to get money without a certificate of income. In turn, many car pawnshops are ready to issue money on a passport, driver’s license and title.
- A good credit history is a prerequisite for obtaining a loan from a bank. Financial pawnshop companies lend against the collateral of almost any borrower, even those with a low credit rating.
- Clients without official employment have practically no chance of getting a loan from a bank. In this case, the term of work in the last place should be at least 4-6 months. As for the car pawnshop, even freelancers and officially unemployed borrowers have high chances of approval of a loan application.
- Consideration of an application at the bank can take 2-3 business days. MFIs and car pawnshops respond much faster to customer requests and usually give an answer within an hour. At the same time, the pawnshop representative will not call the employer or other contact persons, as is usually the case with employees of bank credit commissions.
- The interest rate is calculated individually for each borrower. This allows you to take out a loan on more favorable terms than in a bank.
Important. If the car was purchased after marriage, the written consent of the wife (husband) will be required. A significant advantage in the eyes of the lender will be the availability of CASCO or OSAGO.
Borrower and vehicle requirements
One of the main advantages of mortgage lending under PTS is the minimum requirements for the borrower.
- Passport of a citizen of the Russian Federation.
- Permanent registration in Russia
- Age from 18-21 years old (depending on the conditions of a particular company).
As for the requirements for a car, they take into account the age of the vehicle, its market value, as well as the technical condition.
Important. You cannot use a loan-bought car that has not yet been paid off as collateral. Also, cars that are in the register of pledged vehicles are not accepted. You can get a loan exclusively for your own car (that is, being its legal owner).
Loan registration and obtaining procedure
- You submit an online application on the IFC or car pawnshop website, having previously calculated the cost of the loan using a loan calculator. In many companies, an application can also be submitted through the mobile application or by calling the hotline.
- The manager of a financial company contacts you and offers to undergo an assessment of the collateralized car. Depending on the conditions, the assessment is carried out in a car pawnshop or at the customer’s home / office.
- After the assessment, you draw up a loan agreement and receive a payment schedule. We recommend that you carefully study all the lending conditions. This will help to avoid unforeseen unpleasant situations when repaying the loan.
- By concluding an agreement, you transfer the TCP to the microfinance company. Documents on the car are stored there until you pay off the loan in full.
- After all the formalities are settled, you receive the full loan amount. As a rule, credit services issue loans in cash, to a bank card or current account. There are also different ways to repay the loan: in cash at the office, through Internet banking, in your personal account, through payment terminals or electronic wallets.
Important. We recommend trusting only those financial companies that are in the Register of MFOs of the Central Bank of the Russian Federation. There are still quite a lot of “gray” car pawnshops on the market, whose work is far from always being in the legal field. You are at great risk by contacting such organizations. First of all, the subject of a pledge – that is, your car. Be sure to read reviews about the company on the Internet before concluding a loan agreement.
Where to get a loan secured by PTS with a low interest rate
Despite the large number of offers on the market, not all financial services dealing with PTS lending offer borrowers truly favorable conditions. The CarCapital company (LLC MCC “Alternative Financing”) offers its clients quick loans, which are issued here on the security of cars, as well as light commercial vehicles worth from 100 thousand rubles.
By going to CarCapital website in St. Petersburg, you can get acquainted with the conditions. Borrowers have access to term loans without confirmation of income in the amount of up to 500 thousand rubles (the amount is calculated individually, depending on the assessed value and liquidity of the collateralized car). The maximum loan term at CarCapital is 36 months. The interest rate is from 2% per month, and at the moment this is one of the most advantageous offers on the market for lending secured by PTS.
Another plus is that the company acts as a strategic partner of the well-known CarPrice service. You can evaluate a car and sign a loan agreement at one of the CarPrice offices throughout Russia.