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Can I use my vehicle as collateral for a loan?

Curious about Collateral

Can I use my vehicle as collateral for a loan?

Yes, you can use your vehicle as collateral for a loan in India. A vehicle loan is a type of secured loan where the vehicle itself serves as collateral. This means that if you default on the loan, the lender has the right to seize the vehicle to recover their funds. However, you must ensure that the vehicle is registered in your name and that there are no outstanding loans or liens against it. Additionally, the lender will evaluate the value of the vehicle and may offer you a loan amount based on that value.

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