Baba Vehicle Purchase loan

A Vehicle Purchase Loan is a type of loan provided by banks, financial institutions, or cooperatives to help individuals or businesses buy a vehicle — such as a car, motorcycle, scooter, jeep, or even commercial vehicles like trucks or vans.

🔑 Key Features of a Vehicle Purchase Loan:

1. Purpose:
   To finance the purchase of a new or used vehicle for personal or commercial use.

2. Loan Amount:
   Usually covers 70% to 90% of the vehicle's price (depending on the lender and borrower's credit profile).

3. Collateral:
   The vehicle itself is usually kept as collateral until the loan is fully repaid.

4. Interest Rate:
   Fixed or floating interest rates — varies by lender and loan type.

5. Repayment Period:
   Typically ranges from 1 to 7 years depending on the loan amount and borrower’s repayment ability.

6. Down Payment:
   Borrower must pay a certain percentage upfront (usually 10% to 30%).

7. Eligibility:
   Salaried individuals, business owners, or companies with a regular income or good financial history.

🚗 Types of Vehicle Purchase Loans:

• Two-Wheeler Loan – For motorcycles and scooters

• Car Loan – For personal four-wheelers (new or used)

• Commercial Vehicle Loan – For trucks, vans, pickups, buses, etc. used in business

• Electric Vehicle (EV) Loan – For electric cars and bikes (some lenders offer special interest rates)

✅ Benefits:

• Easy access to vehicles without full upfront payment

• Helps build credit history

• Available from banks, cooperatives, and finance companies

• Pre-approved options for existing bank customers