How to apply for a Personal Loan with Car as Collateral at Santander?
PImagine the following situation: you're behind on your bills and trying to reorganize your finances, but your credit score is on the blacklist. Traditional banks refuse credit, and the alternatives that do appear have extremely high interest rates or abusive conditions. Desperation sets in, until an option few people know about emerges: use your car as collateral to get a loan with much lower interest rates — even with a bad credit history.
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This is exactly the proposal of Santander vehicle secured loan, operated through SIM, a fintech company that is part of the Santander Brasil group. The proposal is simple: you offer your car as collateral, and with that you get loans with rates starting from 1,27% per month, flexible terms and less demanding credit analysis.
If you've never heard of this alternative or have questions about its safety, functionality, and benefits, this guide will show you the full process.
What is a Vehicle Secured Loan?
It's a type of credit where the customer offers their car as collateral for payment. In other words, the bank lends the amount and, in exchange, uses the vehicle as “insurance” that the debt will be paid off. The car remains with the owner, who can use it normally, but it is alienated (in the name of the bank) until the end of the contract.
This model has grown a lot in Brazil, especially among people with restricted credit, self-employed workers, or those with low credit scores. This is because the bank's risk is lower, and therefore the interest rates are also lower compared to a regular personal loan.
Advantages of the Santander Guaranteed Loan
What makes this option so attractive for those in financial difficulty?
- Accepts negatives: Even with a bad credit history, it is possible to be approved, as long as you meet the basic conditions.
- Low interest: From 1,27% per month, one of the lowest rates on the market for personal credit.
- Highest values: The approved amount can be significantly higher than a typical loan.
- Extended deadline: It is possible to pay in longer installments, with installments that fit your budget.
- Security: The entire process is guaranteed by a company in the Santander group, one of the largest banks in the country.
- Free use of money: The amount can be used for any purpose — paying off debts, investing, renovating, studying, etc.
How does the process work? Step by step
Many people think it's complicated or bureaucratic—but the process is straightforward, quick, and well-defined. See the complete step-by-step guide:
1. Vehicle Assessment
It all starts with the analysis of your carThe vehicle must be paid off, in good condition, and in your name. The bank will conduct a market appraisal to determine the estimated value and, from there, determine the loan amount (typically up to 80% of the car's value).
2. Credit Analysis
Even if you are negative, a simplified credit analysis to assess the risk and define the conditions: amount released, interest, and number of installments. This step is done quickly and digitally.
3. Submitting Documentation
You must present:
- Personal documents (ID, CPF, proof of residence)
- Vehicle documentation (Updated CRV and CRLV)
Everything can be done digitally or in person, depending on the stage of the request.
4. Signing the Contract
With the proposal approved, you sign the contract. At this point, the car is alienated to the bank, that is, you keep it, but you cannot sell it until you pay off the loan.
5. Release of Money
After signing and verifying documents, the amount is released directly into your account. In many cases, this occurs within 48 hours after formalization.
What are the Loan Conditions?
Conditions may vary depending on the customer's profile, but average data offered by SIM (Santander company) they are:
- Interest rate: from 1,27% per month (can reach up to 1,39%, depending on the profile)
- Payment term: variable, usually between 12 and 60 months
- Loan amount: depends on the vehicle valuation (on average, up to 80% of the market value)
Important: Vehicles over 15 years old are generally not accepted.
Santander or SIM? What's the Difference?
This is a common question. SIM is a fintech owned by Santander, created precisely to offer personal credit in a more agile, digital way and with less bureaucracy.
So, even if you don't see the name "Santander" highlighted in the process, know that the entire operation is guaranteed by this traditional bank, which offers legal security and stability.
It's like a "branch" of Santander specializing in more accessible credit for those who don't fit the traditional banking customer profile.
Is It Safe to Use Your Car as Collateral?
Yes — as long as you know what you're doing. Liening the car serves to protect the bank, but you keep the good, you can use it normally, and if you keep your payments up to date, you are not at risk.
Nonetheless, if there is default, the bank may request the vehicle's repossession. Therefore, it's essential to only take out a loan if you're certain you can fulfill the agreement.
Precautions Before Signing
Before hiring, pay attention to key points:
- Read the contract carefully: check fees, late fees, and what happens in case of default.
- Calculate the impact on your budget: see if the installments really fit your month to month.
- Don't get excited about the approved amount: ask only for what you really need.
- Confirm vehicle regularization: cars with debts or restrictions are not accepted.
Who has used it, recommends it?
Many Brazilians who used this line of credit report satisfaction, especially for being approved even with a bad credit history, with much smaller installments than other types of loans.
"I tried to get a personal loan from three banks and only got one when I used my car as collateral. I paid it off in 36 installments with low interest."
"That's what got me out of trouble. If it weren't for this option, I would have resorted to financial institutions with absurd interest rates."
These reports show that, with awareness, this type of credit can be a strategic and much more economical exit.
Conclusion: Is it worth it?
If you are in debt, have a paid-off vehicle and need money urgently, Santander's vehicle-secured loan (via SIM) may be exactly what you're looking for.
With interest from 1.27% per month, flexible term, high value and fast release, it positions itself as one of the best alternatives for those seeking secure personal credit, without falling into financial traps.
But remember: credit is a solution, not a temporary relief. Use it with planning, responsibility, and always with a focus on organizing—and not further messing up—your financial life.
