Which one to opt for- personal loan or used car loan?Whenever it comes to the situation of taking a decision while taking a loan for you, it is never an easy decision to make. The purpose for which you are seeking for a loan may vary like for medical expenses, improvement of your home or even to buy a used car due to a limitation in your budget. No matter what is the purpose, but confusion always persists while choosing between the available options and also for how to opt for the cheap personal loans available in the market.
The purpose of getting a loan might vary, but the most desired one is to buy a car for you. There are various options available from the personal loan companies but most of the loan applicants struggle to take a decision. Many people also fail to meet the basic eligibility criteria for getting the approval of the loan as most of them to come with poor knowledge about the basic rules and terms required for loan approval.
Most of the loan companies provide two options while opting for a car loan:
- Getting a personal loan
- Getting a used car loan
Unlike new car loans, second hand car loan comes with a completely different setup. The amount of loan sanctioned in used car loan depends on the ages of the car, the model of the car and most importantly on the condition of the used car. The interest rates for used car loans also vary when put in comparison with a new car loan.
Now the most important question arises, which is that should you opt for a used car loan or just go for a personal loan in Nagpur? You can consider certain factors enlisted by us which will make it easier for you while choosing the type of loan.
What is the rate of interest offered by both type of loans?
In general, the rate of interest for personal loan ranges from 12% to 20%. The rate of interest for used car loan ranges between 11% to 25%. The rate of interest depends on many factors like your type of employment, age, salary, the amount required for loan and most importantly it depends on your credit history.
In case you receive and draw high scale salary and along with that you acquire a positive history of credit then choosing personal loan would be the best option as used car loan also includes higher rates of interest.
What is the tenure of loan and is partly payment allowed?
This is a very important part as this decides the amount of interest you are going to pay and also the amount you are going to pay under the EMI. Always check for the loan tenure which is offered to you and also compare it with other possible tenures that are available and EMI without affecting your monthly expenses also.
When it comes to part payment, make sure to check if it is allowed and if it does then also look for the charges that are imposed under it.
What are the various formalities that come with the approval of the loan?
When you think of hassle-free loan approvals then Personal loans are the one that is quick too as only your personal and professional factors are considered there. When it comes to used car loans then it is a bit time consuming as it requires the details of the car along with the documentation.
Properly evaluate your requirement and wisely choose from either used car loans or personal loans in Nagpur according to your requirement.
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