Auto Loans made simple! Apply Now
Auto loan is an unsecured loan (no collateral required) that individuals borrow from banks, credit unions, or online lenders for personal use—like medical expenses, home renovation, travel, debt consolidation, or major purchases.
Features of Auto Loan
An auto loan is a type of secured loan offered by banks and financial institutions to help individuals purchase new or used vehicles, including cars, bikes, or commercial vehicles. One of the key features of an auto loan is that it can cover up to 90%–100% of the vehicle’s on-road price, depending on the borrower's creditworthiness and the lender's policy. These loans come with flexible repayment options, typically ranging from 1 to 7 years, and offer competitive interest rates, usually between 7% and 12% per annum. Most auto loans come with fixed interest rates, ensuring stable monthly EMIs throughout the tenure. The documentation required is minimal, and the approval process is quick—often within 1 to 3 working days. Since the vehicle itself serves as collateral, no additional security is needed. Both salaried and self-employed individuals are eligible, and many lenders also allow prepayment or foreclosure, sometimes with a nominal fee. Overall, auto loans are a convenient and affordable way to finance a vehicle without straining your savings.
