Car loans
Pic credit - chovaymuaoto.vn

Millions of motorcyclists in India dream of owning a car one day and many who already own one fantasize about upgrading to a new one. This is a natural tendency and a process of evolution! These dreams are not far-fetched now due to the popularity of probably the most powerful tool – Car Loan! So, if you intend to buy a car but are short of money or you do not have it at all, all you have to do is call your bank and it will be happy to lend you the required amount which you can repay in easy installments every month.

For this, they charge a car loan interest which is nothing but an additional amount of money calculated as a percentage of the actual loan amount. Consider this as a small fees which you pay for using someone else’s money when you need it. You can also set your loan repayment period based on your comfort level.

In very broad terms, if you take a loan of, say, Rs 100 and the interest rate is 10 percent, you will end up paying approximately Rs 110 over the period of the loan tenure. In the meantime, you get your dream car which you could not have afforded otherwise and the lender (a bank in this case) ends up making some money on the excess they have – a win-win situation for both the parties.

Let us delve a little deeper and analyze a situation when you are out in the market to buy a car and are soliciting the complete on road value of the car as loan. In some of these cases, few institutions may not grant you the complete amount (because of various internal reasons, policies etc). The workaround is to get the remaining amount as a personal loan from the same or some other financial institute. Bank will pay the car loan directly to the dealership from where you get your car saving you a lot of running around.

Car loans have made people turn their dreams into reality and it is really very easy to get one. In today’s age applying for loans has become very seamless. Many financial institutes provide a lot of related useful details on their websites, apps etc. You can, in fact, have an idea of the tentative monthly installments by entering a few details on the respective portals. However, do remember that you should only borrow an amount which you can repay without affecting your daily outgoes. Because it all sounds hunky dory at the onset but situations can change ugly if you pile up a lot of debt on yourself! So, be smart and use this extremely helpful tool judiciously!


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  1. Nicely written. With some banks now offering car loans for 10 years, it is high time we also inform users to purchase car in their budget constraints, and not get swayed away due to discounts.

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