Yearning for a car that you can flaunt? A vehicle is a dream for many, that can keep up your wishes and you can go for long drives. You can fulfill all your desires to go for a weekend gateway to the nearby destination if you have a four-wheeler. It is an asset and you can go ahead and meet your needs in the best place. However a car is not a small and quick buy, you need to make a good investment to enjoy a ride. No matter how basic a model you go for, it will cost you a good deal. So, if you are seeking our debt options, then there are a variety of debt portfolios available for you to finance a car. You can take a loan and purchase a car and then go ahead and pay the loan in small EMI monthly. It will help you with quick buy without giving any stress to your income.
However what kind of loan are you seeking? It is a car loan or a personal loan? Well, both can go well if you are reaching out for a car. To choose the right one you must know how each of them works and what suits you the best.
What is a personal loan?
A personal loan is the most common form of debt that is cheap and easily available. You need to apply for a personal loan and you get instant approval. Also, you can go ahead and get the fund in your account within a few hours, and yes you are good to use it for anything that comes up. A personal loan can be crafted alongside all your expenses as there is no rigidity in end-use. You can plan anything with the money and get it done without any restriction. Repayment is easy and you can go for a short-term or a long-term loan. It will help you with easy EMI that you can choose from at your convenience.
What is a car loan?
As the name speaks, it is meant to buy a car. Here the bank will approve a certain fund and will offer it to the loan provider. You cannot access this amount of money for anything else that comes up. The money is rigid in one use and that is purchasing the Car. The rate of interest is always high and you need to wait for a good number of days to get the loan approved. It will help you get the fun fund in someday and you are good to buy a car with the loan. There is a lot of eligibility criteria checked when it comes to a vehicle loan.
Which is better?
Flexibility: In terms of flexibility, you can expect a personal loan to stand. If while buying a car you find that you lack some money, you can go for a personal loan so that you can meet all other expenses too. After you buy a car, you need funds for decorating a car or going out for a weekend-long drive. This is possible if you are going for a personal loan where you can meet your car fund and other expenses. However, if you go for a car loan, the fund will be given to your dealer and you get the car. The fund will help you purchase the car but all other expenses need to be done by you.
Approval time: In a personal loan the approval time is instant. It is possible for you to go for an instant personal loan where you get funds in just a few days. It will be easy for you to get a loan within few hours. However, for a car loan, the loan process is a lengthy one. You need to wait for some days to get the fund in your account. If you are in hurry, you can for an instant personal loan so that you can buy your dream car without any waiting period. The process is easy and you can easily get one.
Rate of interest: A personal loan is the most affordable form of a loan. You can easily negotiate a good rate and go for a good deal. If you compare the rates, a personal loan interest rate wins over the rate of a car loan. There will be a lot of difference in the rate of interest. So if you are looking out for an affordable debt, you can go for a personal loan.
Wrapping up
Use a vehicle loan calculator to get the best rates. This will help you understand the amount you need to pay and compare the best rates. Go for a low rate of interest so that it does not be a burden.