An auto loan is a financial arrangement offered by banks or financial institutions to help individuals purchase new or used vehicles such as cars or two-wheelers. The borrower repays the loan through fixed monthly installments (EMIs) over a selected tenure along with interest. The vehicle generally serves as collateral until the loan is fully repaid. Auto loans make vehicle ownership more affordable by spreading the cost over time. They often offer competitive interest rates, flexible repayment options, and quick approvals, helping buyers manage finances while enjoying the convenience of personal transportation.
