Additionally, auto loans can come with competitive interest rates, particularly for borrowers with good credit scores. Some lending institutions may even offer promotions, such as low or zero-percent financing, to attract customers. It's important to note that auto loans are secured loans, meaning the vehicle being purchased serves as collateral. If the borrower fails to make payments according to the loan agreement, the lender has the right to repossess the vehicle. As a result, borrowers should carefully consider their ability to make timely payments before committing to an auto loan. Auto loan is a financing tool provided by retail banks and lenders to assist individuals in purchasing vehicles. It offers borrowers the opportunity to acquire a vehicle while spreading the cost over a specified period, making vehicle ownership more accessible. With customizable terms, competitive interest rates, and the potential to improve credit history through responsible repayment, auto loans contribute to enhancing mobility and fulfilling transportation needs. However, borrowers should exercise caution and carefully evaluate their financial capacity to ensure successful repayment and a positive overall borrowing experience.