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It’s not just about convenience when you buy a car in India. It’s about moving forward, pride, and freedom. Having a car is often a big deal in life. It could be your first hatchback or an SUV that your family has been waiting for.
But when it’s time to pay for that dream, one important question arises: should you choose a personal loan or a vehicle loan?
With multiple banks, NBFCs, and digital lenders offering attractive options, choosing the right loan can feel confusing.
In this blog, we break down a common confusion among buyers:
Should you take a vehicle loan or a personal loan for a vehicle?
Higher fuel prices, rising car costs, and what works best for your budget and lifestyle.
Everything needs to be balanced smartly. So choosing the right car financing option can save thousands of rupees in the long run.
Let’s simplify this decision so you can drive with confidence.
A vehicle loan is specifically for buying a:
Get your dream come true with Instalment Express, vehicle loan with:
Average interest rate in India: 8%-12% (varies by bank and credit profile)
Best For: People planning to buy a specific vehicle with lower EMI burden.
A personal loan offers complete flexibility. The lender does not limit how you can use the money. You can buy a car, pay for insurance, or cover accessories.
But since its unsecured (no collateral), the lender takes more risk.
Average interest rate in India: 12%-20% based on credit score
Best For: Those who want complete ownership freedom, especially when buying a used car from an individual seller.
| Feature | Vehicle Loan | Personal Loan |
|---|---|---|
| Interest Rate | Lower | Higher |
| Collateral | No | No |
| Loan Amount | Based on car value | Based on borrower profile |
| Processing Time | Fast (12–24 hrs) | May take time |
| Usage | Only to buy the car | Flexible |
| Ownership | Fully yours from day one | Full ownership from day one |
| Scenario | Best Loan Option |
|---|---|
| First-time buyer, salaried, wants lower EMI | Vehicle Loan |
| Self-employed person buying old car from friend | Vehicle Loan |
| Poor or no credit score | Lender offering flexibility like Instalment Express |
| Need car + accessories + insurance support | Personal Loan |
But before applying anywhere, check processing fees, foreclosure rules, and EMI affordability using a loan calculator.
In cities like Mumbai, Pune, Bengaluru, and Delhi, daily travel and safety make having a car necessary. When time is tight, long bank lines and extensive paperwork can be really frustrating.
This is where digital loan partners like Instalment Express help with:
When life moves fast, your car financing should too.
We help Indian customers borrow money more easily at Instalment Express. We can help you get a car loan or a personal loan for your car.
Here’s how:
Instalment Express can help you get your dream car more quickly. This is true whether you work for a salary or are self-employed. Whether you should get an Instalment Express Vehicle loan or not depends on how comfortable you are with your finances. It’s best to check the EMIs, interest rates, and length of the loan before you sign.
| If you prioritize… | Choose |
|---|---|
| Lower interest rates | Instalment Express Vehicle loan |
| Faster funds & flexibility | Instalment Express Vehicle loan |
| Buying used vehicle directly from seller | Instalment Express Vehicle loan |
| Brand-new car with comfortable EMI | Instalment Express Vehicle loan |
Instalment Express Vehicle loan is the right one depending on your financial comfort.
The smartest move is to compare EMIs, interest rates, and loan tenure before signing.
Ready to Buy Your New Car?
Whether you choose a vehicle loan or a personal loan for vehicle purchase, make sure the process is:
Check your eligibility in minutes, no stress, no long queues.
Ready to Get Behind the Wheel?
Instalment Express makes the process quick, safe, and clear, whether you want a structured vehicle loan or a flexible personal loan.
Apply online today with Instalment Express for fast and secure car financing, because your dream car shouldn’t wait.
With Instalment Express, getting a loan is fast, easy, and stress-free.
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