Gone are the days when cars were included in the list of luxury items. Cars have become a necessity nowadays. With a remarkable increase in the living standard of people, cars have become an inalienable part of our lives.
A car gives you the independence to commute at your own will. There are a large number of people who use cars for different purposes such as Office-goers, businessmen, students, small merchants, doctors, engineers and other professionals etc.
But everyone is not satisfied with the car he/she possesses. Your car may be old and you want to replace it with a new one. Most of us want luxurious cars these days fitted with state of the art technology. But, the problem arises when many of such people willing to buy new cars fall short of finances. Taking a CAR LOAN is a wise option in this case.
A CAR LOAN is specifically meant for your car-buying requirement. You may choose from among a variety of cars available in the market and apply for a car loan accordingly. When you want to avail a car loan you have two options. Either you can avail a secured car loan or an unsecured car loan.
A secured car loan is provided against collateral, which is usually your house. But, in case you don't have your own house or you don't want to risk your house, take an unsecured car loan. In a secured car loan you will be charged with low interest rate. The monthly installment will also be small and the repayment duration will be short. Whereas, in case of unsecured car loan the interest rates are a bit higher. The monthly installments are bigger and the repayment period is shorter.
Since availing a secured car loan involves time consuming affairs like valuation of your house and paper work attached with it, more people go for unsecured car loans. This is also because they want to repay their debt in a short span of time and they don't want to risk their homes. In the UK, there has been a marked increase in the number of people who avail unsecured loans rather than secured loans.
The process for getting a loan has also become easier with the advent of internet. Now, you can get a car loan sitting at home by just filling an online loan application form. You no more need to run after brokers or visit finance companies.
About the Author
The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. He has done his masters in Business Administration and is currently assisting Ask4Loan as a finance specialist.