A flat rate charges interest on the whole original loan for the full term; a reducing-balance rate charges it only on what you still owe. So a loan quoted at a flat rate costs far more than the same figure on a reducing balance. Compare loans by the APR in the Key Facts Statement, which RBI requires lenders to give you.
Set a budget and see which cars fit it
Checked against source 1 on 18 Sep 2026.