Car Loan

A car loan allows a borrower to buy a new or used vehicle without paying the full price upfront. The lender (such as a bank or finance company) pays the car dealer on behalf of the borrower, and the borrower repays the loan in monthly installments (EMIs) over an agreed tenure.

Car loans usually come with fixed or floating interest rates and repayment periods ranging from a few months to several years. The vehicle itself is often used as collateral until the loan is fully repaid. Factors such as income, credit score, loan amount, and tenure affect loan approval and interest rates.

Car loans make vehicle ownership more affordable by spreading the cost over time, allowing buyers to manage their finances while enjoying immediate use of the vehicle.