Auto Loan is a credit facility offered by Banks and NBFCs to help individuals and businesses purchase vehicles for personal or commercial use. Auto loans can be availed for buying new or used cars, two-wheelers, commercial vehicles, electric vehicles (EVs), and fleet vehicles, making vehicle ownership more affordable and convenient.

Auto loans are generally secured loans, where the vehicle itself acts as collateral/security with the lender until the loan is fully repaid. The loan eligibility, interest rate, and tenure depend on factors such as the borrower’s income, credit score, vehicle type, loan amount, and repayment capacity.

Banks and NBFCs offer various Auto Loan products, including New Car Loans, Used Car Loans, Two-Wheeler Loans, Commercial Vehicle Loans, Electric Vehicle Loans, Refinance on Existing Vehicles, and Fleet Finance. These loans come with flexible repayment tenures, attractive interest rates, and easy EMI options, especially during festive seasons like Diwali and Navratri when special offers are available.

The minimum auto loan amount usually starts from ₹50,000, while borrowers can avail financing of up to 90–100% of the vehicle’s on-road price, depending on eligibility and lender policies. Auto loans are offered by Public and Private Sector Banks, NBFCs, and captive finance companies, with repayment tenures ranging from 12 months to 84 months.

Auto loans make vehicle ownership easier by offering quick approvals, minimal documentation, competitive interest rates, and flexible repayment options—helping individuals and businesses move ahead with confidence.