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Car Loan vs Personal Loan for Vehicle

Compare secured auto loan rates vs using a personal loan to buy a car.

FactorCar LoanPersonal Loan
Rate8.5–11% typical13–16% typical
CollateralVehicle hypothecationUnsecured
Max tenureUp to 7 yearsUp to 5 years
Verdict: Always prefer a car loan over a personal loan for vehicle purchase — lower rate and longer tenure reduce EMI pressure.

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