Can I get a loan if my car is not paid off?


Car loans or bank loans have become quite easy to obtain nowadays. With an increase in disposable income, getting a car or personal loan, even for meagre workers, has simplified. Most of the people, despite having a ready cash flow, opt for a loan because loan enables easy instalments (A fixed amount every month against the loan), allowing people to plan their finances. 

This article will answer your question can I get a loan if my car is not paid off and it focuses on using the car as collateral to obtain loans despite it being under a loan itself and how to go about it.


Difference between a car loan and car title loan:



  • A car loan is buying a car by undertaking a loan, converted into easy instalments.
  • A car title loan is all about using a car as a collateral to get another loan, be of personal or otherwise in nature


Amount approval under-car title loan:


A car title loan usually is approved up to 25 to 50% of the total value of the car. This amount may vary under various conditions like the amount needed, state of the vehicle, any loans against the vehicle, formal car papers, etc.


Many buyers provide a reasonable rate of interest and may others, not so much, but once approved, you hand over the title to the moneylender. The amount lent needs to be paid off within a certain period of time with a particular interest levied against the amount to be paid monthly or quarterly. 


Things to consider before taking a car title loan:

  • The percentage rate of interest
  • The total amount borrowed
  • The monthly or quarterly rate of interest
  • How much total interest and one-time fees needs to be paid
  • The period the money is borrowed for



Advantages of getting a car title loan


  • Quick instant Cash

A car title loan or an auto title loan is the fastest way to get cash as all you require is your car, provided you are the sole proprietor of it. 


  • Less paperwork, less processing time

Loans are a form of short-term loans that doesn’t require much of a paperwork, other than the original papers of the car. Many times, the maximum time taken to process a car loan is about an hour or so. 



  • No possession of the vehicle

The best part about the auto loan is that the car is only used as an entitlement or guarantee against the money provided. The acquisition will stay with you for use, and you can keep it till the end of the repayment period.


  • Zero requirements of a guarantor 

A car or auto loan, unlike other loan procedures no guarantor is required making it extremely easy to procure the loan


  • Credit score validity not required:

no need to worry about a bad credit score as it hardly matters in case of auto loan thus making things easy for people without credit cards or low credit scores


  • Easy Payback Schemes

A payback scheme of auto loans is attractive as they offer a multitude of interests for payment, putting the borrower at ease. 



One such place that makes auto loan very easy to acquire is’, an online website platform that has an extensive database on various car loan lenders that provides easy loan without much paperwork or hassle and are authentic. This informational website helps in-

  • Identifying genuine car loan lenders
  • Understanding the terms and conditions of the loan
  • Assists in evaluating the risks or risk assessment
  • Provides enough information on each lender
  • A variety of option on car loan lenders
  • Comparing various lenders and their conditions along with a comparative rate of interest
  • Identifying lenders near me
  • Getting in touch with the lenders efficiently


Car loan or auto loan is a decent process that requires less hassle and running around, and’ wants this system to be simple, efficient, and suitable for the people so that a genuine medium can be sought-out for people in immediate need of money or fast cash. 


Now that we know all about the loan lender, what happens if your car is already under loan and is not paid off?


Generally, the answer to that is negative, as since the car is not paid off, the owner doesn’t have a sole proprietorship, which is essential for getting an auto loan. However, there are some exceptions- 

  • Owning a 2017 vehicle with just 3 to 4 months of instalments left qualifies you for an auto loan under ‘not sole’ proprietorship.
  • Owing to certain instalments with another car lender company with a remainder of 3 to 4 months for the remaining interest
  • The additional sum on loan based on payment history is also possible in some instances


Other conditions like death, divorce, or unavailability of the owner of a car may still be qualified for a car lender loan paid in full to the person claiming the credit.




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