Once a man has become bankrupt, he is marked as danger for ever. In such a situation it is not easy for him to get a loan from a lender or from any bank. But auto loans after bankruptcy is changing this myth as bankrupts are easily and frequently given loans under this plan. This loan has come into existence due to competitive nature of the loan market, as the lenders want to expend their range in order to generate money. These loans are like a second chance for such people.
Prerequisites and facts
These loans have some requirements to be fulfilled by the borrowers; these are
a) You need to be a British citizen
b) You should at least be 18 years of age
c) You must have an employment
d) You need to show your income.
One may wonder how a loan can be granted to a bankrupt. But due to the fact that auto loans are secured against the vehicle purchased, these loans are easily available. This means that in case you fail to make timely repayment, your vehicle will be repossessed by the lending firm. This will also hammer your further credit in the loan market and you may go in bad book of the lenders.
Auto loan after bankruptcy is granted at very high interest rates as the loan is granted to a bankrupt. So you need to maintain a regular monthly repayment. With timely repayment of about 12 months you may get the benefit of lowered interest rate along with an improved credit score. In case you fail to do this your interest rate will be further increased and you may be deprived to use your vehicle.
