Title loans are easy to get because they are meant to be given in case of emergency situations. All you need is to have a vehicle and give it as collateral in exchange for a title loan. This concept is very well known to everyone. We all know how high-rated these loans are and it is difficult for some people to pay it back, Title loans have caused a lot of depression to some people. That is why there are few states that forbid the title loans. The states where it is legal to take title loans are:
- New Mexico.
- South Dakota.
Virginia allows title loans so people in Virginia can apply. There are some basic regulations for title loans. As in case of the normal secure loans everywhere, they verify the value of your vehicle and then decide the payment. So title loans rarely check the credit status, since they designed it for people like them.
All you have to do is to provide your government regulated ID, fill an application form that they provide in the title loan office, and you will get your loan amount in 30 minutes. When you apply it online, you will get a call from them asking about your details and car details and will ask you to visit their office with your collateral i.e., your vehicle. In either of the cases, they are expecting you to visit their office.
You need to provide car details along with a NOC and a title for your car as collateral and submit to them. They will inspect your car or any of the vehicles that you mark as your collateral and they take it. They provide a loan for a duration between 120 days and below 12 months. It is never before 120 days and is against their laws.
The duration limits for title loans in some states
- In Alabama, there is no restriction on the amount you can borrow. The loan amount is not to be restricted to return within 10 days.
- In Arizona, they do not restrict the loan terms within 6 days, and the interest rate does not exceed 17%.
- In Delaware, loan terms cannot exceed 180 days.
- In Georgia, the loan terms aren’t regulated and the interest rate cannot exceed 25%.
- In Idaho, loan terms cannot exceed over 30 days.
- Loans in Mississippi cannot borrow more than $2,500 and loan terms cannot exceed a month and provide a principal amount of 10% and interest of 25%.
- In Nevada, there are no regulations as much as in other states; The only regulation is that the loan is renewable only six times.
- South Dakota has the same regulations as in the case of Nevada, but the only difference is that the loan is renewable only four times.
- Tennessee has the same rules as Mississippi, but the only difference is that the interest amount is only 2%.
Why are title loans legal in these states? This is because people with bad credit are getting benefitted by title loans.