If you’re in the market for a major purchase like a new car, or need some extra cash to fund a personal project, taking out a loan could be your best bet.
Personal loans and car loans represent two of the most common financing options. Assuming you meet their respective lending requirements, they can be relatively easy to obtain. These days, most lenders accept online applications for personal loans, and car loans are generally approved on the spot at the car dealership.
So what’s the difference between the two? A personal loan can be used for many different purposes, whereas a car loan (as the name implies) is strictly for the purpose of purchasing a vehicle. If you want to borrow money for a car, you could simply take out a car loan, but if you require funding for a purpose that’s less specific or falls outside the typical lending box (such as a vacation, wedding or home improvement), a personal loan provides more flexibility.
Each loan type bears its own pros and cons, so it’s important to weigh and compare them before signing on the dotted line.
The Personal Loan (Unsecured)
A personal loan provides the borrower with funds from a lending institution (generally a bank), whereby the full loan amount is paid in a lump sum that can be used at the borrower’s discretion. Personal loan amounts typically range anywhere from $1,000 to $50,000.
A personal loan can be secured against something of value, such as a vehicle or home, allowing the lender can seize your asset to recover its losses in the event that you don't repay the loan. However, most people opt for an “unsecured” personal loan, which means the loan is free from collateral.
Generally, unsecured loans have higher interest rates than comparable secured loans with collateral attached. Unsecured personal loans also come with much more stringent approval requirements, so you’ll want excellent credit on your side. If yours is in poor shape, a personal loan might not be an option – that is, until you can strengthen it (see 3 Easy Ways To Improve Your Credit Score). Both the loan amount and the interest rate (which can be fixed or variable) will be largely influenced by your credit rating. The better your credit rating, the higher your borrowing capacity and the lower your interest rate. Conversely, the poorer your credit rating, the lower your borrowing capacity and the higher the rate.
Low Interest Rate Loan Offers in India:
The dictionary defines a loan as thus, ‘a thing that is borrowed, especially a sum of money that is expected to be paid back with interest’ and rightfully so, our entire civilization is built on the concepts of loaning and paying back. In modern day India, the middle class has emerged as an average marketer’s dream target, the playground for companies that deal in consumer products and consequently, the numero uno customer for the massively available loans. From homes to education, vehicles to vacations, if there is an expenditure angle involved, then there is a loan for it.
In terms of sheer volume and popularity, the banks have segregated the concept of loaning into various types. There is the personal loan, and as its name so aptly suggests, is an influx of monies that the receiver can use for whatever personal requirement or monetary contingency that he/she might have. Not surprisingly, a home loan and car loan is intended for the purchase of a home and a car respectively, while an education loan helps the borrower cope with the high prices for a competent education these days. In India, almost all private and public sector banks count the aforementioned loan products as hot commodity in their respective portfolios and competition is ripe to attract a prospective customer’s undivided attention. From varying interest rates to relaxed loan tenures, poaching strategies like the concept of home loan transfer- the shifting of home loan from one lender to another who offers a lower interest rate, to heavy discounts and offers, the string of available loan options are many.
How can anybody discriminate between these available choices? Explore, Bankbazaar.com.
Why Apply for a Loan at BankBazaar.com?
The urbane loan comparison website, BankBazaar, helps you sort through a plethora of probable loan options, through a simple and eye-pleasing interface, that is focussed on bringing both the pros and cons of the associated loan plan, on the proverbial table for your inspection. Why apply for a loan with BankBazaar? The following reasons form the crux of our offering to you-
- One Stop Shop for Multiple Products: Looking for a personal, home or car loan? Bankbazaar offers multiple competent choices in each case, based on your specific requirements.
- Lowest Interest Rates: Our association with market leaders like HDFC Bank, Axis Bank and ICICI Bank help us score the lowest interest rates on personal, car or home loans for you.
- Get Instant Quotes: Filling up a simple online form helps us evaluate the perfect loan options for you. Rather than spending a substantial amount of time in finding the right cut, relax, have some coffee.
- Simple Online Comparison: Various parameters are in play when loans are compared against each other for your specific suitability- rate of 4. interest, EMI, processing fees, customer feedback etc. With BankBazaar, never end up with an option that hasn’t been properly and profusely vetted.
- Transparent Workings: BankBazaar isn’t a mediator, a promoter or in cahoots with any bank. Our assessment of the available loan options for you is always impartial and objective, such that you have every last shred of information to make that informed decision.
- Privacy: We treat your personal information with the highest of regards. The information you provide is only shared with your chosen lender, and never shared with a third party for any reason whatsoever.
- Trust: Top banks in India like HDFC, ICICI and Axis Bank swear by the Bankbazaar name. Our reliable online technology has been powerfully adopted by these lenders to provide their customers the best loan experience on their own websites.