Loan is a form of credit activity in which banks or other financial institutions lend monetary funds at a certain interest rate and must return them. Loans in a broad sense refer to loans, discounts, overdrafts and other borrowing funds.

Car loan is actually a commodity. While it is convenient for you to use the car, the bank is also making money with your car. That's how this interest came about.

On the other hand, you enjoy the convenience of using the car in advance, and the extra interest paid for buying a car is just what you need to give in return.