I'm trying to get loan from the bank and I'm going for a special interest rate category called Professional loan scheme. Since my qualification time period is low and got the degree recently they're asking me to mortgage the car. Are there any differences between car mortgage and auto loan? Is it ok to say "yes" to go for the car mortgage ?
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Frankly it is just weird terminology in today's jargon. While Webster defines a mortgage as:
a conveyance of or lien against property (as for securing a loan) that becomes void upon payment or performance according to stipulated terms.
Almost all traditional car loans are secured by the car being purchased, so technically they would qualify as a mortgage per Webster, however they are rarely called that. Given some of the reading I did on the matter, I would speculate that this lending institution could call it a "car mortgage" if the loan extends for a long time.
Another point of speculation is that they may call it that to make it sound more sophisticated. In other words it might be just a marketing ploy.
Can you link the institution that is providing this loan?
Pete B.
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