A vehicle loan is a financial agreement that allows you to borrow money to purchase a vehicle. The vehicle itself is used as collateral, which means the lender can repossess it if you can't repay the loan.
How it works
The lender pays the seller the full amount of the loan
You make monthly payments to the lender for a set period of time
Your payments go toward the amount you borrowed plus interest
Eligibility
You'll need to meet certain eligibility criteria, such as age, income, and credit history
You may need to provide documents like your photo ID, proof of residence, and income tax returns
Repayment
The length of your repayment period can vary, but it's usually between 36 and 72 months
Longer repayment periods typically result in lower monthly payments, but you'll pay more in total
Some lenders charge prepayment penalties if you pay off the loan early
Fees
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