Personal Loan or Car Refinance Loan
The car refinance loan is essentially a secured loan like a home mortgage loan. However, the process is much simpler and much faster. The car refinance loans allow you to take a loan on your existing car, by pledging the car registration papers at the lender’s.
There is a difference between the traditional car loan and a car refinance loan – The former is used to purchase of a car while the latter is used to solve your money requirement by pledging a car you already own.
Just like a personal loan, there is no restriction on the end-use of a car refinance loan.
Interest rates on car-refinance loans are relatively lower compared to personal loans, although paper work could be more extensive. So, if you have a requirement for money and you own a car, the car refinance loan is a viable option when compared to the personal loan.
Personal loan is an unsecured loan.
Higher rate of interest when compared to car refinance loans.
Loan amount on the basis of your monthly income.
Relatively higher processing charges.
Less paper work, thus quick loan processing.
Car refinancing is a secured loan. Basically here you get the loan on the strength of your own car.
Lower rate of interest when compared to personal loans.
Loan amount up to 60-80 per cent of the actual car value.
Relatively lower processing charges.
More extensive paper work.