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How to give collateral loan for car in India?

Personal Finance & Money Asked on June 28, 2021

My neighbour wants a loan on his car. What are the legal procedure to give such a loan?

One Answer

You would need to create loan agreement and register it. Plus sign up papers for hypothecation with RTO.

You would need to pay taxes on interest. Please consult a lawyer and CA.

Given the costs involved it doesn't make sense.

Correct answer by Dheer on June 28, 2021

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