Buying a car is a significant milestone, offering both comfort and convenience. While car loan are commonly used for financing, many individuals are now turning to personal loan to buy a car due to their flexibility and ease. In this article, we’ll explore how a personal loan for car purchase works and why it could be the right option for you.

What is a Personal Loan for Buying a Car?

Personal loan is an unsecured loan, and you don't have to put your car or any other asset as collateral. It provides the flexibility of spending the money wherever you like, including on a car purchase. A personal loan for car purchase is a valuable option if you are planning to purchase a used car, or if the model of car you wish to purchase isn't eligible under a common auto loan.

Advantages of Availing a Personal Loan for Vehicle Purchase

No Collateral Required

In contrast to car loan secured on the car, a personal loan for vehicle purchase does not involve any security. You exclusively own the car right from day one.

Flexible Application

You may utilize the amount of loan not only for the vehicle but also for allied charges such as registration, insurance, accessories, or even petrol.

Fast Disbursal

Personal loan tend to get approved quicker compared to car loan, at times within 24 to 48 hours.

Fixed Interest Rates and EMIs

Most lenders provide fixed interest rates, which will help simplify your monthly budget planning.

Points to Consider

• Higher Interest Rates: As it is unsecured, personal loan interest rates can be higher than car loan.

• Shorter Tenure: Personal loan have shorter tenures (maximum 5 years), hence slightly higher monthly EMIs.

• Good Credit Score Needed: Make sure your credit score is good to avail the best offers.

Conclusion

Taking an online personal loan to purchase a car in India is a pragmatic choice, particularly if you desire flexibility, quick processing, and outright ownership on day one. If you're purchasing either a new car or a used vehicle, a personal loan for a car offers you the freedom of money that you require minus the constraints of a secured loan. Shop around between lenders, rates, and terms of repayment before you make a final decision.