A new car loan is a type of financing that helps you purchase a brand-new car. You borrow the money from a lender and repay it in monthly installments along with interest.
The lender provides you with the loan amount needed to buy your chosen new car. You then repay the loan over a set period, in fixed monthly installments.
A down payment is the initial amount you pay upfront for the car. The loan covers the remaining amount.
The interest rate is the percentage charged by the lender on the loan amount. It determines how much extra you pay over the principal during the loan tenure.
New car loans typically range from 1 to 7 years, depending on the lender and borrower’s preference.
You can choose the loan tenure to adjust your monthly payment amount, but the final figure depends on your loan amount and interest rate.
Yes, but you should inform your lender, as certain modifications may affect insurance and resale value.
The loan term is the period you have to repay your loan in full, typically measured in months or years.
Yes, most lenders allow early repayment, though some may charge a prepayment penalty.
You can apply through banks, NBFCs, or online loan marketplaces by submitting your application, required documents, and choosing your preferred loan offer.