If you are looking for a loan that buys you a car then you should prefer a loan that is specifically meant for the purpose. Motor loan is one such loan offered to any type of borrower for buying a new or used car. are approved as per the convenience of the borrower under secured or unsecured options.
When you require greater amount of loan for buying a costly car, it would be better to opt for secured motor loan that comes against any of your property like home. The very car you intend to buy also can be put collateral. The lender will take deal papers of the car in possession and will return on getting the loan fully back. And you can drive the car during the repayment period. You are also assured secured motor loan at lower interest rate depending on your personal circumstances like credit history and repaying capability. Unsecured
is best suited for smaller borrowings. But rate of interest is higher. Both secured and unsecured motor loans are to be paid back in shorter duration of 5-6 years.
In case you have bad credit because of past late payments, payment defaults, arrears or county court judgments against your name, still motor loans are easily available if you are willing to fork out higher interest rate. Still if you take rate quotes and compare different lenders for individual rates then you are likely to get motor loans at competitive rates.
There are banks, financial companies and online lenders to whom you can apply for motor loans. Online lenders do not charge fee on loan processing and approval also comes in time. Ensure to buy car from a reliable dealer for meeting quality standards. Take services of a mechanic to check mechanical defects in buying used car.
