Personal Loan or Car Refinance Loan

The car refinance loan is essentially a secured loan like a home mortgage loan. However, the process is much simpler and much faster. The car refinance loans allow you to take a loan on your existing car, by pledging the car registration papers at the lender’s.

There is a difference between the traditional car loan and a car refinance loan – The former is used to purchase of a car while the latter is used to solve your money requirement by pledging a car you already own.

Just like a personal loan, there is no restriction on the end-use of a car refinance loan.

Interest rates on car-refinance loans are relatively lower compared to personal loans, although paper work could be more extensive. So, if you have a requirement for money and you own a car, the car refinance loan is a viable option when compared to the personal loan.