The Credit Compass
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Vehicle Loan Decoded.

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.

Last reviewed: 20 Feb 2026HDFC Car Loan

How we source data

  • ✓Primary sources only: All interest rates, fees, and eligibility data are collected directly from official bank websites, RBI circulars, NHB guidelines, and IBA publications.
  • ✓No aggregators or PR: We never use third-party aggregator data, press releases, or unverified rate comparison sites as source material.
  • ✓Regular audits: Each loan type page is reviewed quarterly. The "Last reviewed" date on each page reflects the most recent full data audit.
  • ✓Independence declaration: The Credit Compass has zero commercial relationships with any bank or lender. We earn no referral fees, commissions, or advertising revenue from financial institutions.
  • ✓Last full data audit: January 2026 — covering RBI Monetary Policy Committee rates, all eight comparison banks' official rate cards, and scheme eligibility criteria.
Sources: RBI.org.in · NHB.org.in · IBA.org.in
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