A vehicle loan is a sum of money a consumer borrows to purchase a vehicle whether it can be two, three wheeler or 4-wheeler. These vehicle loans are also known as Auto Loans. There are two types of vehicle loans. One is direct auto loan and the second one is Indirect Auto Loan.

In a direct auto/vehicle loan, a bank offers the money directly to a consumer. In an indirect auto loan, a car dealership acts as an intermediary between the bank or financial institution and the consumer. The interest rates for secured loans are generally lesser than unsecured loans.

Purpose of Vehicle Loans:

1. Vehicle loans can be availed by individuals for personal use like purchase of 4-wheeler or purchase of 2-wheeler etc.
2. These vehicle loans can also be availed by companies for individual firms for the usage of their directors or their top management.

Vehicle Loan Eligibility:

1. Resident Indian citizen and Non-Resident Indians (NRIs).
2. Minimum age – 18 years and maximum age – 75 years.
3. Individual, either singly or jointly with family members.
4. Companies or financial institutions take these vehicle loans for their top management.

Features of Vehicle Loan

1. Vehicle Loan enables an individual to purchase a car even if he/she don’t have all the money for it right now.
2. Most of the vehicle loans will finance the on-road price of the car.
3. For some Car loans financial institutions will finance 100% of the on-road price with no down payments.
4. Any vehicle loan in India are secured loans. This means that the car serves as the security/collateral for the loan.
5. Procuring a car loan is generally simple when compared to other loan products. consumers with slightly bit low credit scores can also avail this Vehicle loan in which it may differs as per the norms of the financial institutions.

*Terms & Conditions