Do I need to pledge any thing or give collateral to get a car loan?
No, there’s no necessity for any collateral. The bank will only need you to hypothecate the car in its name. Most financiers will insist on an endorsement being made in the Registration Certificate (RC) book of the vehicle. This will be cancelled after you repay the loan. How long will it take to process the loan? If all the required documents are in order, things move fast. The tardier you are with the documents, the longer your car sits in the showroom. You need to submit requisite documents like salary slip, tax returns, proof of residence, bank statements etc. For a complete loan application, the processing will take between 2 to 7 days for a private bank. If you decide to take a loan from the nationalised bank, it will take atleast two weeks for the loan to get processed because there is heavy paperwork involved. Is verbal commitment final? No, absolutely not. Unless and until you sign on the dotted line you have an option to back out of the negotiation process any time you want.
