Personal Loan vs Car Loan: Which One is Better? - Loan Trivia

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Thursday, 6 July 2017

Personal Loan vs Car Loan: Which One is Better?

What is a personal loan?
A personal loan is basically an unsecured loan that can be used to meet any financial requirement. Banks and NBFCs lend personal loan without any security against it. From travel expenses to organize a wedding, you can avail a personal loan for absolutely anything.

Whereas banks or financial institutions lend Vehicle loan for your four wheeler or two wheeler purchase. Although, you can use a personal loan for your car purchase. Personal Loan is always a better way to finance your car as compare to personal loan.
Car loans come with approximately same interest rates as compared to personal loan. However, availing of car loan from institutes other than bank will offer you interest rate equal to that of a personal loan. But in personal loan you can finance the whole amount equal to the price of car where as in car loan you have to pay the downpayment.

Before you decide on availing a loan, do not forget to do a thorough research. Compare rates offered by different banks, NBFCs. In short, it is always better to apply for a Personal Loan when you needed a loan for car.

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