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How to Apply for a Car Loan

Online, branch and dealer-point applications step by step, from quotation to RC with hypothecation.

Updated 27 September 2026 · 8 lenders tracked
Lowest car loan rate
7.45%
Canara Bank Car Loan
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What you need to know

You can apply at the dealership, at a branch, on the bank’s website or app, or through fully digital journeys such as bob Digital Car Loan and PNB Digi Car Loan. Pre-approved customers can get sanction the same day.

Steps

  1. Get an itemised quotationEx-showroom, road tax, registration, insurance, TCS, accessories.
  2. Compare offersRate, rate type, fee, funding and foreclosure — from the KFS.
  3. ApplySubmit KYC, income and the quotation online or at the branch / dealer.
  4. VerificationCredit check, income verification and sometimes a residence or office visit.
  5. Sanction and agreementRead the sanction letter and KFS; sign the agreement and set up NACH.
  6. Disbursal to dealerBank pays the dealer after you pay the margin.
  7. Post-disbursalSubmit RC with hypothecation, insurance copy and invoice to the bank.
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Before you sign

  • Is the rate fixed or floating, and what is the reset period?
  • APR in the KFS (includes fees)
  • Foreclosure and part-prepayment charges
  • Whether credit life / other insurance is optional
  • Do not accept bundled products you did not ask for
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Frequently asked questions

Should I take the dealer’s financing?

Dealer desks are convenient, but compare the rate and fee with your own bank; you are free to choose any lender.

For information and comparison only. Loan terms, rates and rules change — confirm with the lender and read the Key Facts Statement before borrowing.