Private sector banks and companies are emerging as a new source, for providing assured finance and loans. Finance and loans are the two terms which are associated with the lending of money. Most of the time people misunderstand that finance and loans are synonyms, but they are two different terms with their own characteristics.

Car loans are simply given by banks and other private companies to people for whom they get interest. With the help of money you got from bank you can pay the money to buy a car. Car loan can be simply defined as a category of simple loan. In loan you are the owner of that car from the beginning and loan provider has to go to the court to recover the money from you in case you are a defaulter.

Car finance is an agreement in which you have to pay the money in terms to the company who is providing money to you for a car. In finance you have the car but you are not the owner of that car until you pay all the money to financer.