[ad_1]
Car Loan vs Personal Loan Interest Rate: If you want to buy a new car in the festive season, then you must read this news once. If you do not have enough money to buy a car, then you can also buy a car by taking a loan. But you are confused that which car loan is right to take?
Personal Loan or Car Loan
Let us tell you that personal loan is an unsecured loan. Car loan is a secured loan. In a car loan, your car is mortgaged with the bank until you repay that loan in full. While giving a personal loan, any bank takes into account the factors like monthly income and credit score of the person applying.
what are necessary
Suppose if you are looking to buy a car worth Rs 15 lakh, then banks can easily give a loan equal to 80-90 percent of this price. You should have the ability to pay EMI. Many banks are also giving loans up to 100 percent of the cost of the car.
personal loan
If you want to take a personal loan, then the bank does not have anything as security. They have to give the loan only by looking at your credit history and loan repayment ability ie income. On the other hand, there is no need to mortgage a car, property, valuable jewelery for a personal loan. For this your monthly income and credit score should be good.
car loan
If you buy a new car by taking a car loan, then that car is not entirely yours until you repay the entire loan amount. That is, till the loan is completed, the ownership of the car is with the bank from which you take the loan. The documents of the new car are mortgaged with the bank or financial institution. If you do not repay the loan within the stipulated period, the bank or financial institution can auction your car and recover your money.
car loan is cheap
Let us tell you that most of the banks charge high interest on personal loans. But in comparison, the interest rate on car loan is less. Whereas personal loans are expensive due to being unsecured. Before applying for any of these two loans, one should compare the interest rates.
read this also –
[ad_2]
Source link