Personal loans are unsecured loans given to the individual either by the bank or a non-banking financial company in order to meet or satisfy their financial needs. On the other hand, car title loans are secured loans given by the lenders in return for keeping the car or vehicle as collateral with them. If you decide to get any loan out of these two you can seek help from Instant Loans Canada and get the loan. 

The amount of the personal loan is decided by looking at several factors such as income level, employment history, and credit history of the applicant who wishes to get the loan. The amount of a car title loan depends on the condition of the vehicle and also by looking at the market value of the vehicle. The only thing that differentiates these loans from one another is the requirement of the asset. To get a car title loan a person will be required to present a vehicle as collateral in order to get the loan, but for the latter, an asset is not required. One can apply for a personal loan without the need for an asset. 

Another important aspect to keep in mind is the interest rates on both loans. The interest rate on a personal loan is generally much higher than that of a car title loan, the reason behind this is the amount of risk involved in getting the loan and also when the loan is given without any collateral. Well, let us have a look at both in the loans in brief differently. 

Personal loans

Let us first have a look at the interest rates of personal loans. Since it is a kind of unsecured loan, it is observed that unsecured loans usually have higher interest rates than any other kind of loan. These loans come with many more strong approval requirements in order to get the loan. For the same, you will need a good credit score and also you will look after the same if your credit score is poor. And if you have a bad credit score, then a personal loan might not be an option for you. Now, let us have a look at the pros and cons of getting this loan.

Pros and cons of personal loans


  • There are no restrictions on how funds are spent.
  • There is a lot of flexibility in the structure of payments.


  • The interest rates are expected to be high.
  • The lending requirements are tough.
  • Clients with low credit scores will not be able to get the loan approval. 


Car title loans

Since it is a secured loan, it usually has low-interest rates than the other kinds of loans. The debt of the loan is deemed at a lower risk. The interest rates of this loan are so fixed that the borrowers do not have the tendency to increase them. Now let us have a look at the pros and cons of getting this loan. 

Pros and cons of car title loans 


  • The interest rates of this loan are low.
  • The loan is available even if you have a low credit score.
  • Suitable for sudden emergencies.


  • You will not have the title of your car until you have made the complete payments for the loan.
  • You will be required to make a security deposit upfront in order to get the loan. 

These are the pros and cons of personal and car title loans, you can have a look at both and then decide accordingly which loan you would want for yourself. Now, let us have a look at different aspects and compare these loans keeping in mind the aspects. 

  1. Loan tenure period

The loan tenure period for both loans is different. With a personal loan, you might get a loan tenure period of 60 months and also there are several lenders that give you a tenure period of 7 years for the same kind of loan. On the other hand, with a car title loan, a person gets a loan tenure period of four years to collect the funds and pay back the loan amount. 

     2. Purpose of the loan

One can get personal loans for any reason for the fact that lenders usually don’t put bars or restrictions on the purposes of the loan. On the other hand, car title loans are meant to be used for the purpose that has been solely designed for it. 

    3. Ease of loan availability

It is comparatively easier to get car title loans instead of getting a personal loan. There are several reasons behind this for instance, even if you have a low credit score or even if you are in between jobs you can still get this loan no matter what but getting a personal loan with such conditions will become quite a task or a thing. 

Looking at these aspects you can decide which loan will suit you the most and why. Usually, it is suggested that you should get a car title loans in need of any emergency otherwise one should not risk their vehicle by keeping it as collateral in order to get the loan. Also, it is observed that the amount of people getting personal loans is comparatively higher than the number of people getting a car title loan. The reason behind the same is the amount of risk involved in getting the loan. People always keep a car title loan as a last option and it is always suggested to be certain and sure of repaying this loan otherwise the borrower will end up losing the collateral that he has kept in return for getting the loan. You can take your time in making the right choice between getting a loan for yourself in emergencies and get rid of financial issues. Make sure that you do diligent research on the loan you want to opt for before making a decision or finalizing it.