What is a Georgia Title Loan?
Georgia title loans are loans which are secured by an asset, such as the borrower’s vehicle, under the title loan regulations for the state of Georgia. This allows lenders to repossess and sell such assets in order to claim payment for the loan. Title loans therefore generally lack any credit requirements, and, also unlike other loans, have no laws regarding the size of the loan. Loan amounts are instead governed by practicalities such as the value of the asset used as collateral. Title loans are not legal in everywhere, and details/laws regarding them are also different for every state. Limits on interest payments, payback terms, and rollovers are often unique to a particular state, or may not exist at all.
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Title loans tend to have high interest rates that can get borrowers into trouble if they are not careful. Some states will, therefore, have regulations in place to protect borrowers. Title loan rates in Georgia, for example, cannot be higher than 25% per month for the first three months, and 12.5% per month for all subsequent months.
To obtain a title loan in Georgia requires ownership of a title, proof of income and residence, a government-issued I.D., and that you be 18 years of age.
In Georgia, title loans legislation follows GA Code § 44-12-131 (2017): All transactions are 30 days in length and may be renewed for additional 30 day periods. Lenders may not charge more than 25%monthly interest. Lenders also may not charge more than 12.5% monthly interest on title loan extended more than 90 days. Finally, lenders may take possession of the automobile at the moment of default, unless otherwise agreed upon, and without any judicial process, insofar as it can be done without disturbing the peace.