Car Loan Vs Other Loans

It is advisable to take a car loan when you want to purchase a car as car loans can be availed very easily with minimal documents. Car Loan Interest Rate can vary bank to bank. But most of the banks and non- banking financial companies (NBFCs) can offer car loans at a very reasonable interest rate. While taking a car loan one should compare various banks and non- banking financial companies (NBFCs) offers to get the best possible car loan deal. In most of the banks the car loans can be availed very conveniently without much hassle.

Bank of India Car Loan can be availed very easily without much hassle. Bank of India provides car loans at a much lower interest rate of 7.35%. The processing fees charged by Bank of India is much lesser in comparison to other banks.

Car loan is one of the most convenient loans which can be applied easily. Car loan is also a secured loan. One can get a car loan at a very attractive price. There are various differences when it comes to car loans vs other loans.

Some of the difference between car loans vs other loans are stated below for information :

Car loans can be availed on attractive interest rates whereas other loans can have interest rates on a much higher side. Personal loans can have interest rates on the higher side in comparison to car loans.

Car loan is a secured loan as the vehicle is used as the collateral for securing the loan whereas in other loans like personal loans and student loans are unsecured loans that don't involve any collateral.

Car loans can be easily availed even with a mediocre credit history whereas personal loans, housing loans and student loans require a certain amount of credit history and are more difficult to get.

Car loan often has tenure between 2 to 7 years whereas student loan, housing loan or personal loan can go upto 10 years or more depending upon the credit score. Car loans have much shorter tenure in comparison to other loans such as student loans, housing loans and personal loans.

Car loans can be availed much easily in comparison to any other loan as a car loan is a secured loan and can be easily sanctioned but the same is not possible in case of unsecured loans such as personal loans or student loans.

While availing a car loan you have to at least pay 20% of the amount as the down payment and the rest 80% amount you can get as the loan amount but the same is not in case of personal loan, you can get 100% loan amount in case of the personal loans.

Conclusion -

Car loan is one of the most convenient loans. Car loans can be sanctioned more easily than any other loan. Car loans require minimal documents which is very convenient to the borrower. The term of a car loan is usually 24 months to 60 months. Nowadays many banks as well as non- banking financing companies (NBFCs) are providing car loans to the borrower. Earlier, middle class people could not afford a car due to its high range but with the car loans and so, many companies financing the loan has made the job very easier and convenient. In today's time, middle class people can get cars easily by just availing car loans from banks and non- banking financial companies (NBFCs) at very reasonable interest rates and requirement of minimal supporting documents.

Author's Bio :

Gaurav S. Khurana is the Founder and CEO of Dialabank and has had a great career in the Banking and Financial Services Sector. He has an experience of 18 years in the sector and has worked at Senior Roles including National Sales Head at ING Investment Management India and as the Vice President Citibank. A post-graduate from IMT, Ghaziabad. Gaurav started his career as a Named Account Manager in Xerox.

Being a part of this field for a long time now, he has written many informative articles and blogs benefiting and assisting many in making decisions regarding the policies provided by various banks and non-banking financial companies such as the Bank of India Car Loan.

Gaurav S. Khurana is the Founder and CEO of Dialabank and has had a great career in the Banking and Financial Services Sector. He has an experience of 18 years in the sector and has worked at Senior Roles.