# Vehicle Loans in India Guide

## Key Overview
- **Summary**: A vehicle loan helps you purchase a car, motorcycle, or commercial vehicle by financing up to 90-100% of the vehicle cost. The vehicle itself serves as collateral through hypothecation to the bank. Vehicle loans have lower interest rates than personal loans due to security, and offer flexible tenures from 1-7 years. The loan is tied to the specific vehicle and cannot be transferred without bank approval.
- **New Car Loan Rates**: 8.70% to 11.50% p.a.
- **Used Car / Two-Wheeler Rates**: 11.00% to 18.00% p.a.
- **Financing Basis**: Check whether the loan covers Ex-Showroom price only or On-Road Price (including RTO road tax and comprehensive insurance).