Why Choose a Personal Loan to Buy a Car
These days owning a car is a necessity than just a dream. Having a car in the house is the ultimate sign of comfort. The freedom to set out anytime you want is what many people need these days. But as the demand for cars is going up so is the price. You have the option to buy a used car first and then go for a brand new one. But, even a used car has costs which are stressful to pay in one go. In such cases, you can avail a personal loan to buy the car.
Yes, there are specific car loans available, but a personal loan can give you more flexibility in terms of the amount availed, collaterals etc.
Here’s why you should choose a personal loan to buy your car.
- No Hypothecation
A personal loan is an unsecured loan. So when you avail a personal loan for your car, the car is not hypothecated by the bank or the lender. This means that your car is not kept as a collateral and is completely owned by you.
- No Need for Dealer Checks
Unlike car loans, there are no dealer checks done by the lender if you choose to avail a personal loan.
- Speedy Approval
A personal loan is approved based on your credit score. There is no ex-showroom price rule involved. You decide on an amount and apply for the loan. The banks or NBFCs check your credit score. You need to have a strong credit score if you want the loan to be approved.
A personal loan is a convenient option as you can now avail it online with minimal documentation. You do not need to submit your car papers, registration certificate etc. Also, there is no restriction on the type of model, company or dealer.
- Incur Other Expenses
Other expenses such as adding accessories, taking car insurance can also be incurred through a personal loan. Take the loan for a higher amount and incur these expenses.
- Buy a Used Car
You can avail a personal loan and buy an acquaintance’s car. A used car is a good option and acts as a precursor to a brand new car.
- Easy Repayment Options
A personal loan can be repaid by Equated Monthly Installments or EMIs. You can also prepay the loan if you have an influx of funds. You can calculate your EMIs using the personal loan EMI calculator and get an estimated amount for your monthly installments.
- Instant Disbursal
The loan amount is disbursed in minutes. As the whole process is digitized, it does not take more time for you to get money in your bank account.
A personal loan is an easier option than a car loan. Compared to a car loan you also get to choose a tenure suiting your needs as there is no collateral involved. Check the lender website thoroughly and go through all the details before applying for the loan.