Vehicle Loan

A Vehicle Loan is a financing solution offered by banks, NBFCs (Non-Banking Financial Companies), and other financial institutions that allows individuals or businesses to purchase new or used vehicles without paying the full amount upfront. The borrower repays the loan in monthly installments (EMIs), which include both principal and interest.

The vehicle acts as collateral, meaning the lender can repossess it if the borrower defaults on payments. Loan tenure typically ranges from 1 to 7 years, and interest rates can be fixed or floating depending on the lender's terms.

Vehicle loans can be categorized into:

• Car Loans – For new or used cars.

• Two-Wheeler Loans – For bikes and scooters.

• Commercial Vehicle Loans – For trucks, vans, buses, etc.

Eligibility depends on factors like income, credit score, employment stability, and repayment capacity. Some lenders offer 100% on-road financing, while others may require a down payment.