Car/Vehicle Loan
🚗 For purchasing new or used vehicles
- Fixed EMIs, repayment tenure up to 7 years
- Vehicle is hypothecated until full repayment
🚗 New Car Loan
Purpose: To purchase a brand-new car
🔹 Features
- Loan covers up to 80–100% of the car’s on-road price
- Tenure: 1 – 7 years
- Lower interest rate (usually starting from 8% p.a., based on profile & bank)
- Security: Car is hypothecated (used as collateral) until loan repayment
- Flexible EMI options
- Quick processing with minimal documentation
🚘 Used Car Loan (Pre-Owned Car Loan)
Purpose: To purchase a second-hand/used car
🔹 Features
- Loan covers up to 70–90% of the car’s valuation (based on age & condition)
- Tenure: 1 – 5 years (typically shorter than new car loans)
- Interest rate: Slightly higher than new car loan
- Security: Same hypothecation applies (car remains mortgaged until repayment)
- Easy ownership transfer included
- Quick disbursal if car documents are complete and clear
📊 Interest Note
Interest rates depend on vehicle type & borrower profile.
