According to data provided by any bank, personal loans consisted of approximately 96 percent of non-food credit in any year. It has skyrocketed with loans to more than twice its share in incremental food credit in the personal loan previous two years. The sharp increase in borrowing in the form of personal loans or any other loan is attributed to various reasons.
Select lending institutions allow you to borrow a car loan approximately 100 percent of the total ex-showroom price of the vehicle in a personal loan in the form of a car loan that allows you to borrow up to 80% or any other loan with a personal loan of the vehicle. This is the reason why many people who avail of a car loan or any other loan also avail of a personal loan to cover up the rest of the amount they need in a personal loan.
The repayment tenure for both types of a personal loan or any other loan of loans is different. An instant personal loan allows you a repayment tenure personal loan or car loan of approximately 50 months personal loan or car loan or any other loan whereas. A longer repayment with personal loan tenure allows you the luxury of smaller installments, however, you will end up paying with a car loan a higher amount of money in the form of interest. A shorter tenure will entail larger personal loan installments and a lower amount of interest.
Opt for an option that allows you to continue with you can apply for a personal loan online paying the loan installments without compromising on other financial commitments with a car loan.
When you opt for a personal loan to purchase a car, the ownership car loan is transferred to you immediately and cannot be repossessed by the bank. However, nonpayment or a personal loan of the loan will severely impact your credit score and impact your financial health in the long run with loans.
If you desire to club your car purchase with other expenses with loans, a Personal Loan Applied Online might be the right option for your requirements with a personal loan.
The loan amount taken needs to be repaid over a certain period of time which you can pay with the help of personal loan. Most banks offer a repayment period of up to 5 years for personal loans or any other loan, with this being around 9 years for a car loan or any other loan. The repayment period for a used car loan is typically lower, with banks like Indian Overseas Bank Personal Loan capping it based on the age of the vehicle.
With cars priced across different brackets with a personal loan, it is not hard to find a car within a set budget. In the case of car loans, most banks are willing to finance personal loans anywhere between 50% and 80% of the car cost with a personal loan, with this going up to 100% in certain cases. In case 100% financing isn’t available, a car or any other loan will not be sufficient to purchase the car. This implies that one needs to spend some personal loan amount from his/her own pocket. For example, if a car costing Rs.10 lakh, a bank offers 80% financing or Rs.8 lakh. The remaining Rs.2 lakh needs to be with a personal loan arranged by the individual, which could be a hassle with loans in certain cases.
On the other hand, one can directly approach a bank for a personal loan or any other loan of Rs.10 lakh and use this to buy the car. There is no need to pay it on time like EMI any amount from one’s own pocket.
A personal loan is an unsecured loan, meaning that it can be availed personal loan or any other loan without providing any security/collateral. On the other hand personal loan or any other loan, a car loan is a secured loan, which means a personal loan that the car is the security for the loan. In case one fails to repay this loan, the bank Indian Overseas Bank Personal Loan can take possession of the car and sell it to recover their money with a personal loan.
Conclusion: While these five points highlight the basic features of a car loan or any other loan and a personal loan, the ultimate decision of which loan should be taken boils personal loan down to the individual. If one has the down-payment amount of a personal loan and wishes to pay a lower rate of interest then he/she should choose a car loan or any other loan.
2945