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Initial car loans in the financial market are meant for purchasing a car but what are instant car loans? As such there is no difference between them. But, instant car loans get approval faster as compared to an initial car loans.

Basically, there are certain factors which enable the lender to approve the loan amount faster. They are:

'Collateral with high equity

Usually, the car loans are available in two forms that are secured and unsecured car loans. But, the secured car loans are always recommended in order to procure funds on competitive rates and with longer repayment period. Along with that, the lender also feel secure dealing with the borrower who offers collateral with high equity as it gives him the security that he can realize his payment when the borrower fails to make timely repayments. And lastly, more equity in the collateral always enable the borrower procure larger amounts.

'Good credit score

It is absolutely true that even a bad credit scorer can avail instant car loans. But at the end of the day, having good credit score is always desirable. Good credit scorers takes many advantages over bad credit scorers such as low interest rate, longer repayment period, favorable terms and most importantly faster approval.

'Online mode

Instant car loans can be availed in the physical financial market but if such loans are applied through online mode, it further speeds up the process of approval. Survey has proven that the lender also prefers dealing with online applications as it offers convenience in all aspects such as cost, comparing and locating the lender.

'High down payment

While availing instant car loans, it is always suggested to make high down payment as it reduces the subsequent loan amount and also the risk of the lender. This as a result, the borrower is offered with competitive rates and also the loan amount gets faster approval.

There are many lenders in the financial market who offers instant car loans, but this doesn't mean that the borrower takes any decision in hurry. Rather, he is recommended to thoroughly go through each and every aspect of instant car loans before finalizing any decision.