Vehicle Loan
What is a Vehicle Loan?
A vehicle loan is a type of secured loan provided by banks or financial institutions to help individuals purchase a new or used vehicle, such as a car, motorcycle, or scooter. The loan amount covers part or all of the vehicle’s cost, and the borrower repays it in monthly installments (EMIs) over a specified period.
The vehicle itself acts as collateral for the loan, meaning if the borrower fails to repay, the lender can repossess the vehicle to recover the outstanding amount.
Vehicle loans make it easier to afford a vehicle by spreading the cost over time, often with competitive interest rates and flexible repayment options.