What are Different Types of Car Loans & Eligibility Criteria
Are you planning to buy a car soon and embark on new adventures with greater freedom? That sounds exciting! But have you thought about financing your dream car yet? With so many car loan options available, it can be overwhelming to figure out the best fit for you. Don't worry; we've got you covered. In this article, we will explore different car loan types and the car loan eligibility criteria to help you make an informed decision. So, buckle up, and let's get started! Types of Car Loans There are three main categories of car loans, each with its characteristics: Secured Car Loans These loans require you to pledge collateral, typically the car itself, to secure the loan. If you default on the loan, the lender can repossess the car. Secured car loans typically offer lower interest rates than unsecured loans. Here are two common types of secured car loans: New Car Loan: They are designed specifically for financing the purchase of a new car from a dealership. Used Car Loan: