car loan for a different purpose!

palasmy

Can I avail a car loan and use it for another purpose? I do have a car but I'm in need of money to settle some of my debts overseas?

Do lenders check in any form about this? what do we need to provide as docs when applying for car loans?

Any advice appreciated..

TMoose

Car loans are usually secured on the vehicle, and therefore it would be difficult to get a loan, and use it for another purpose.

You would need to look into getting an unsecured (personal) loan.

If you are talking about securing a loan on your current car (a log-book loan) then you can use the cash for whatever you feel. However log-book loans are very rarely good value.

Moose

Rafter

palasmy,

Unfortunately you are committing fraud by lying about the loan purpose on your application form.

Lenders are unlikely to check though and if you apply for an unsecured loan, then it is your personal income that is providing security for paying back the money.

R.

inmypocketnottheirs

Best bet is a personal loan. However if your loans are overseas, are you planning on returning?

palasmy

thanks guys for the comments, but even for the unsecured loans lenders seem to be asking for a reason and most often the interest rates are depended on the reasons as well!!

Yes, I will definitley will be returning the loan and have no intentions of commiting any fraud. Due to the genuine reason of settling my debts overseas I'm stuck with regards to giving a right reason here?

PS: I had to turn down the loan offered by my local bank due to the high interest rate (14.5% for unsecured loan) two months back!!