A vehicle loan is a financial service that helps individuals or businesses purchase a new or
used vehicle by borrowing money from a bank, financial institution, or lender. The loan is
repaid in monthly installments, typically with interest. Vehicle loans can vary based on the
type of vehicle, loan tenure, and eligibility criteria.
Types of Vehicle Loans:
New Car Loan
A loan specifically designed for purchasing brand-new cars.
These loans usually offer lower interest rates and longer repayment terms.
Used Car Loan
Ideal for buying pre-owned or second-hand vehicles. Interest
rates may be slightly higher than new car loans due to the vehicle’s depreciated value.
Two-Wheeler Loan
Designed for purchasing motorcycles, scooters, or electric
bikes. These loans are typically easier to obtain and require lower down payments.
Commercial Vehicle Loan
A loan for purchasing trucks, buses, or taxis used
for business purposes. These loans help business owners expand their transportation fleet.
Loan Against Vehicle
If you already own a vehicle, you can take a loan by
pledging it as collateral. This is useful for urgent financial needs.