Whose personal is really right for you? The best and affordable loans for an individual. – News18 Bangla


In case of any big purchase, we usually take a loan. Suppose a person buys a car, he will take a loan for it. This time the person has two options to get a loan – the first is a personal loan and the second is a car loan. And most of the customers take these two types of loans for large purchases. Nowadays a car has become the primary demand of any family. Many people do not buy new cars in the first place, they buy old or second hand cars. Read more: 6th Pay Commission | 7th Pay Commission: Great news for employees before the new year! The salaries of all these government employees are being increased

Due to the fact that there are different types of loans available for big shopping, many customers do not understand what kind of loan to take when buying a car. In order to understand whether to take a personal loan or a car loan, you need to know the features of these two types of loans and their advantages and disadvantages. There is no such obligation in case of personal loan. This type of loan can be taken for any big purchase. But car loan or car loan can be taken only for the purpose of buying a car.

Comparison of personal loan and car loan–
Loan type:
A personal loan is an unsecured loan. So no collateral is required to take this loan. On the other hand, a car loan is a secured loan. In this case, the car has to be mortgaged to the lender.

Interest rate:
Interest rates are generally higher for unsecured loans than for secured loans. The rules for approving unsecured loans are quite strict.

Let’s take a quick look at the important features of personal loans and car loans–

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Important Features of Personal Loans: Unsecured loans.
The term of a personal loan is usually shorter. The amount of money can be from 5 thousand to 40 lakhs. No collateral is required to take a loan. These loans can be taken from various types of lenders including banks, any non-banking financial company and online lenders. Interest rates are higher than secured loans. The loan amount can be used for any purpose.

Important features of car loan:
You only need to take a car loan for the purpose of buying a car. The car bought with the loan money will act as collateral in this case. The car is owned by the lender until the loan is fully repaid.
The term of a car loan can be up to 6 years.
Customers can avail this loan even if they have low credit score. Car loans can only be obtained from banks and non-banking financial companies. However, these two types of loans have some advantages and disadvantages. However, from that point of view, personal loan or personal loan is more beneficial. To understand this in more detail, let’s take a look at the advantages and disadvantages of personal loans and car loans.

Advantages and disadvantages of personal loan
Advantages:
There are no obligations on personal loans. Anything can be bought with personal loan money. Flexibility is also available in repaying such loans. This loan is available without any collateral. You can also buy a car with a personal loan.
Difficulty:
Interest rates are usually higher for personal loans because it is an unsecured loan.
As this type of loan is unsecured, the customer has to go through very strict rules while taking a loan. The creditworthiness of the customer depends on his credit score. Personal loans are not available without a good credit score.

Advantages and disadvantages of a car loan
Advantages:
Interest rates are usually lower on car loans or car loans. Getting a car loan does not have to be complicated. Because it is a secured type of loan, customers with a moderate credit score can also get this loan. And in the case of this loan, the car itself acts as security. Disadvantages: In the case of a car loan, the money borrowed cannot be spent on anything other than buying a car. In case of this loan, the customer has to make a down payment. Not all cars can be bought with a car loan. Buying an old car with a car loan can be a problem. Because the lender will lend based on how old the car is. For example, if someone wants to repair and use an old classic car, he will not be able to buy that car with a car loan. The car bought with the help of a car loan will be mortgaged to the bank. As long as the non-loan is being repaid, the customer will not get full ownership of the car. In other words, the customer will get the ownership of the car only after the loan is repaid.

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