FAQ: What is a Personal Loan for purchasing a car & how do they work?
What is a Personal Loan for purchasing a car, and how do they work?
A Personal Loan is a personal finance product whereby the financier lends the borrower the money to purchase a vehicle, but does not take any security over the loan.
The customer takes ownership of the vehicle at the time of purchase, and makes repayments to the loan over a fixed term, paying off the interest and the principal of the loan in these payments.
A Personal Loan is also known as an Unsecured Car Loan or Unsecured Personal Loan.