Blacklisted and need a loan against your car?

In this article we explain exactly what happens if you take out a loan against a car with XCELSIOR. We explain the way our business model works, why you should keep your car and use it against a loan rather than sell it, as well as the legal aspects and important information that you need to understand the easy loan process.

Loans against my car

What exactly should I expect when taking out a loan against my car?

Many people are under the impression that the process of taking out a loan against a car is far more complicated than it really is. If you need a quick loan online and do not want to go through the hassle of applying for a loan through a bank, or if you have a negative credit history, then using your car as collateral could be a great solution for you. This is where XCELSIOR comes in.

XCELSIOR provides easy to get loans against cars that are provided as security or collateral. These loans can range from R5000 up to R250 000, depending on the value of the car you provide. We will assess your application and have an answer in less than an hour, which is a much more convenient solution than banks offer their clients. We aim to make this process easy and effortless.

XCELSIOR’s unique business model

At XCELSIOR, we are a privately owned company and registered credit provider operating in South Africa, and you can trust us to always offer a professional and ethical service and approach.

Our loan model is particularly beneficial to individuals who are not considered viable by mainstream lending institutions, as we don’t conduct affordability checks and background checks normal banking institutions often do. We pride ourselves on being able to help those who are in need with quick no credit check loans.

Our business model allows people to have access to much-needed funds without having to dispose of their valuable possessions like their car, but instead, your car will be kept safe and sound until it is released back to you.

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We have a variety of client testimonials published on our website too, for your perusal. It is our great track record and dedication to service excellence that has earned us a great reputation and following on the market.

What’s the difference between regular loans and getting a loan against a car

Car pawn loans differ from regular loans in a few ways. When you pawn your car for cash, you will need to hand the vehicle over to the loan company and this car is the collateral – this is also known as a secured loan. In this case, the car would be handed over to one of our consultants at the XCELSIOR secure storage facility. The vehicle is kept safe for the duration of your loan contract. Once the loan is paid back, the vehicle is returned to you.

Why take a loan against my car, rather than selling it?

Chances are that financial problems are short-term. Selling a valuable vehicle at a price far below its true value to cover a debt or perhaps use the money for a business opportunity, leaves you without an asset. You have paid off the vehicle finance and enjoy having the vehicle. Selling your car means losing it forever.

However, if you pawn your car for cash, you can have the money within an hour of completing the application. You still own the vehicle. It is merely placed in storage until you have paid off the loan. The interest is affordable, and the amount you can borrow depends on the vehicle’s value. With a normal short-term loan, you must have a good credit standing, proof of income, and proof of address. You can only qualify for an amount directly related to your income.

When you pawn your car for cash, you do not need any of the above. The amount is not limited to your monthly income or affordability profile. You also do not have to explain why you need the money.

High living costs as the result of an increase in fuel prices, electricity tariffs, school fees, and food can take a toll on your finances. A poor credit record because of a past default on a loan can severely hinder your ability to qualify for a bank loan, overdraft facility, or even a short-term loan.

With XCELSIOR there is no need to sell assets in an effort to achieve your dreams.

What can you use as collateral?

If you have a car that you own and do not need it on a daily basis, you are in a great position to use it as collateral for your loan. It is important to note that with this type of loan, the vehicle that is used as the collateral and must be handed over for the loan period.

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Here is some more good news. You can pawn your bike, caravan, or truck. It does not have to be a passenger vehicle. Perhaps you have a caravan that you cannot use until December or simply cannot afford to use at present? Perhaps you have a motorcycle in the garage? In this instance, you can pawn the vehicle and still have your passenger car for day to day use.

Is pawning a car for a loan legal in South Africa?

Pawning assets to get loans is allowed under the National Credit Act (NCA), which means that it is both legal and regulated by law. We are a registered credit provider and work according to all legal guidelines.

It is also hassle-free and certainly makes for a good finance option for those who have limited options, have been blacklisted or urgently need a same-day approval on a loan.

We have our own business assessment model and we will have an outcome for you in less than an hour after applying. We do our best to make sure that your loan is approved and this is why we eliminated all the difficult and unnecessary paperwork to provide customers with a smooth and effective opportunity.

This is one of the easiest ways to apply for a loan against your vehicle. We will immediately start working on your assessment.

The loan approval process:

For your loan to be approved, you will need to provide us with:

  • Your ID or passport,
  • A valid South African driver’s licence
  • The original registration papers of the car are all the documents required.

If the asset is registered in your company’s name, you will need to provide:

  • The original registration papers
  • Identity documents of the directors
  • The business registration document

What types of vehicles does XCELSIOR accept?

We accept everything from passenger vehicles to trucks and bakkies as collateral. You can even put up your caravan, motorcycle, or watercraft as collateral. You may have a boat or caravan taking up space in your garden for a large part of the year. By borrowing against the boat or caravan, you can still drive your car. By the time you want to go on holiday, you may already have paid off the loan and thus can have your boat or caravan back for the holiday trip.

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Paying back your loan

Once your loan has been approved you will have the funds transferred into your bank account the same day. You can then choose to either repay the full loan amount, or you can choose to make use of monthly payments that will include interest. Most customers choose to repay the loan on a monthly basis to give them time to plan or the repayments can work on their own budget.

What does XCELSIOR do if you cannot pay back your loan

In the event of you not being able to repay the loan, you can ask for an extension, provided the interest and fees have been paid in full. If, for some reason, it becomes impossible to pay back the amount, we simply sell the vehicle to recoup the outstanding amount. It does not affect your credit standing, and the loan is paid up.

Sometimes, unfortunate things happen that prevent people from repaying loans on time. We might be able to extend your contract to assist you in your repayments, but that is not always possible and some people still fail to make their monthly payments.

The vehicle will only be sold if you default on your contract without making a reasonable effort to rectify the situation and if you are unable to repay the loan amount. In this case your vehicle will be sold to recover the funds and if there is a surplus, this will be paid back to you. We do everything we can to make the process as easy and effortless as possible.

While we keep the process quick and easy, we always advise our customers to be realistic in their loan objectives. It is never wise to become over-indebted, so make sure that you can afford the monthly repayments and never borrow more than is required. Confirm interest rates, terms, conditions, and repayment schedules before you go ahead with any loan contracts.

If you would like to use your car as collateral for a cash loan, you have come to the right place.You can apply for the loan online or you can chat to one of our friendly consultants by telephone. Get in touch with XCELSIOR about applying for a loan today.