A car loan is a secured loan that allows you to purchase a vehicle by borrowing funds, which you then repay in monthly installments over a set period of time.

As it is a collateral-free loan, there are no restrictions on its end-use. Some of its common uses are as follows:

Yes, many lenders allow early repayment, but there may be prepayment penalties. It’s important to check the terms of your loan agreement.

Yes, most car loans require a down payment, usually ranging from 10-20% of the car’s price.