On the other hand, a car loan is specifically meant for the purchase of a new car and the amount so availed cannot be utilised for any other purpose.
Both these loans offer custom benefits to borrowers. Check out other details that differentiate personal loans from car loans.
|Personal Loan||Car Loan|
|Type of loan||It is an unsecured loan. Hence, you do not need to provide any collateral to avail the same.||It is a secured loan. To avail this loan, you need to hypothecate your vehicle to your lender.|
|Features||Personal loans offered by Bajaj Finserv come with unique features.
||Lenders offer different types of car loans, like a used car loan, with various features and benefits.
|Eligibility and documents||Get this loan against easy-to-meet personal loan eligibility criteria. The documents required include:
||Meet the basic eligibility criteria asked for by your lender to get this loan. Apart from KYC documents, salary slips, and bank account statements, a borrower also has to present ownership papers of the vehicle.|
|Interest rate||Reputed NBFCs like Bajaj Finserv offer Personal Loans at affordable personal loan interest rates.fees and charges.||In case of loans like a commercial vehicle loan, the interest rate provided by various lenders may vary and can be affordable, depending on the lender you choose.|
If you are looking for a feature-rich credit to purchase a car, you can apply for a personal loan with Bajaj Finserv.
A disadvantage of personal loans is that if the credit is not managed properly, it can be overburdening for the borrower. This can be conveniently overcome by repaying the loan on time.