Nowadays almost all people in UK are facing tough situation to travel to their daily work by local transport. Travelling in own car is a great fun. But sometimes due to financial crisis people are not been able to buy a car and are disheartened. However, they can now avail money from external source and fulfil their dream with the help of small auto loans.

This loan is generally a short term loan which is especially designed to help borrowers with financial difficulties who want to buy a car or any other vehicle. A borrower has to repay the loan amount within 3 to 5 years and the rate of interest is high. With this loan, lenders offer 50% of the total car cost as the loan amount and this is the reason why this loan known is as small auto loans. The maximum amount offered as loan amount by any lender is 2,500 and the minimum interest rate is around 15% APR.

A borrower can also avail this loan with lower rate of interest but they need to make a down payment against the loan. This form of loan is a secured loan; generally the car or vehicle for which the borrower is taking the loan needs to place as a security. A borrower can also place their house or jewellery or any other valuable asset instead of the new car as security against the loan.

The process of application for small auto loans loan is very easy. A borrower can apply online or offline as they wish but they will have to submit some personal documents with their residential proof. The applicant should be a salaried person with a regular income, must have a valid bank account to prove the pay back ability and should be a UK citizen with at least 18 years of age.