These loans are for the needs of smaller amount of money for the borrowers to buy their favourite cars. Buying a car is an expensive affair. Arranging the full amount to buy a car is a difficult task. For these reason the loans with small amount is specially designed to meet the need of small amounts.

These loans are available in two forms. People who cannot afford to place any asset as the collateral for the loan can opt for the unsecured option. People who can place their home or any other asset as the security for the loan can go for secured loan option.

The loan amount of the small auto loans depend on two factors. First one is the price of the car the borrower wants to buy. The second one is the amount borrower has already arranged to buy the car. The difference between the two amounts is the loan amount.

The loan term is available in two options. Short term is for 3 years to 5 years. Long term is for more than 5 years. The loan term depends on the loan amount the borrower is taking. The interest rate depends on the loan amount and the loan term. Long term and secured loan have lower interest rate than the unsecured and short term loan.

Small auto loans have some criteria which are to be fulfilled by the borrowers. The borrower should be a full time employee with a fixed salary. The borrower should be above 18 years of age. The borrower must have a valid citizenship.

Small auto loans are offered by the online and traditional lenders. But online lenders are fast in approving these loans. Applying is easy and all the procedures of the loan are done online for online loans. The borrowers can search for suitable lenders through internet.