Different Types of Car Loans and Their Eligibility Criteria
Buying a car can be an exciting milestone, but it can also be a significant financial investment. Car loans help spread out the cost of purchasing a vehicle, making it a more manageable expense. However, with various loan options available, navigating the process and understanding eligibility requirements can feel overwhelming. This comprehensive guide will explore different car loan types, their eligibility criteria, and factors influencing interest rates for new car loans . Types of Car Loans There are two primary categories of car loans: secured and unsecured. Secured loans require placing your car title as collateral, meaning the lender can repossess the vehicle if you fail to meet repayment obligations. Unsecured loans, on the other hand, don't involve collateral but typically come with higher new car loan interest rates due to the increased risk for the lender. Here's a closer look at the most common car loan types: ● New Car Loans Designed specifically to finance the p