Are you one of those individuals who are reaching their office late just due to irregular service of buses, and now you want to own a car so that you can also reach your destination on time. It is true that buying a car is not a small investment at least for limited income earners. But still all those limited income earners can also afford a car by availing secured car loan.

Secured car loan is the product of the secured personal loan market in which there is an obligation to place collateral against the car loan amount. Collateral in secured car loan can be any asset and sometimes the car itself acts as the collateral in the secured car loan deal. The amount which can be borrowed in secured car loan is in regard to the equity in the collateral placed. In other words, more the equity in the collateral always enables to borrow large amount and with low interest rate.

Today most of the banks, financial institutions and private lenders offers secured car loan. But, it is absolutely true that private lenders offer more competitive rates than any other source such as banks and financial institutions. And above that they are also known for their faster approval.

In secured car loan, there are certain factors which if taken into account always results in making the secured car loan as cheaper means of finance. Some of the factors are:
•Making high payment is always recommended as this reduces the further loan amount. As the result of which the risk of the lender also gets reduced as the loan amount get reduced. This fact enables the lender to offer competitive rates in secured car loan.
•Another factor which makes the car loan, cheap is the high equity in the collateral placed.
•Good credit score is always preferred by the lender as this gives the lender a kind of security that there will be timely repayments of secured car loan.
•And, if somebody has bad credit score, he can also avail competitive rates of secured car loan through co-signer. Co-signer just act as guarantee to the lender as on the non repayment of any installment, co-signer will be held liable for making all the repayments.
•Lastly, and most important factor is that applying through online mode. There are number of online lenders which provide secured car loan on comparatively competitive rates. The reason as to why online mode is preferred and recommended is that it carries negligible overhead and no processing cost.

Before going for secured car loan either from online lender or physical market lender, you must ensure that you have gone through each and every terms and conditions of the secured car loan.