People generally are unaware of the difference between a personal loan and car loan when in need of financing for a car. Numerous banking and non-banking financial organizations provide car loans as well as a personal loan.
Listed below are the major difference between a Personal loan and Car Loan:
- On availing a personal loan, you can utilize the money as per your requirement, but on availing a car loan, you can only utilize the loan amount in financing the car.
- In case you want to buy a second-hand car, then, not every bank provides you with a car loan, in that case, you are suggested to go for a personal loan. But if you are self-employed you can not have a personal loan. In that case, you can go for business loans.
- Besides that, the difference between a personal loan and car loan is Car Loan Interest Rates are lower than Personal Loan Interest Rates. So availing a car loan is much more suitable.
- To get a car loan your age should be minimum of 21 years if you are salaried but if you are self-employed it should be 25 years minimum.
- In case a female is applying for a car loan her income should be more enough to return car loans. Otherwise, she has to add a co-applicant along with her. But in case she is earning well then there is no need for any co-applicant.
Based on the above-mentioned points we can differentiate between a personal loan and car loan. We can infer that if an individual wants financing for their car and not any other purpose then they should go for a car loan. Whereas, Personal Loan is more dynamic and can be utilized in buying a car as well as for any purpose whatsoever.
You can easily apply online for loans on Dialabank. The process is quite easy and simple.
Leading Personal Loan Providers:
Leading Car Loan Providers:
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Special Note: An individual must examine the whole EMI amount payable to the lender with the Personal loan EMI calculator.