Car Loan vs Two-Wheeler Loan
Whether you dream of a car or a bike, a vehicle loan helps you drive it home today. But the terms — and the traps — are different for each.
Two-Wheeler Loan
- Loan amount: ₹30,000 to ₹1.5 lakh typically
- Interest rate: 10%–18% per annum
- Tenure: 12–36 months
- Down payment: 10%–20% of on-road price
- Processing: Very fast, often same day
Car Loan
- Loan amount: ₹2 lakh to ₹1 crore
- Interest rate: 8.5%–15% per annum
- Tenure: 12–84 months (up to 7 years)
- Down payment: typically 10%–25%
- Processing: 1–3 working days
Key Things to Watch
On-road price vs ex-showroom price: Always calculate your loan on the on-road price, which includes registration, insurance, and accessories.
Prepayment penalty: Some lenders charge 2%–5% if you repay early. Check this clause before signing.
Insurance bundling: Dealers often bundle insurance with the loan. You are not obligated to take their insurance — shop separately for a better deal.
At Al-Khair, vehicle loans come with no hidden charges and flexible repayment options tailored to your income.