A vehicle loan entry usually refers to recording or applying a loan taken to purchase a two-wheeler or four-wheeler, either in banking systems or in accounting records.
If you’re talking about the loan application side, the entry generally includes details like the applicant’s name, vehicle type, on-road price, loan amount, tenure, interest rate, and dealer information. Once the loan is approved, the amount is either disbursed directly to the dealer or credited as per the bank’s process.
From an accounting point of view, the vehicle loan entry is made by debiting the vehicle (asset) account and crediting the loan (liability) account. Monthly EMI payments are then split into principal and interest, with interest recorded as an expense and principal reducing the outstanding loan balance.
It’s always important to verify all details before final submission, as incorrect entries can cause issues during audits, EMI reconciliation, or loan closure.
If you’re looking for reliable vehicle loan solutions with transparent processes and easy tracking, Capital Small Finance Bank offers vehicle loans with customer-friendly terms and digital support.
Website: https://www.capital.bank.in
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