Is it better to take car loan from bank or dealer financing in India?

Short answer
In most cases, a bank car loan is better than dealer financing. Dealer loans are convenient, but they often cost more in the long run.

Bank Car Loan

Taking a car loan directly from a bank usually means lower interest rates and clearer terms. You can compare offers, choose tenure, and negotiate better if your credit profile is strong. Charges are more transparent and prepayment rules are usually simpler.
Process thoda slow lag sakta hai, but cost-wise it is safer.

Dealer Financing

Dealer financing is fast and hassle-free. Everything happens at the showroom, which feels convenient. But this convenience often comes at a price. Interest rates can be higher, and some costs are bundled in ways that are not clearly explained. EMI manageable lagti hai, but total payout zyada ho sakta hai.

Dealers may also push longer tenure to show lower EMI. EMI kam dikhta hai, but interest zyada chala jaata hai over time. Yeh part log late realise karte hain.

Which One Should You Choose

If you have time to plan and compare, bank loan is usually the better option. It gives control and saves money. Dealer financing works if you need quick delivery or do not want paperwork hassle, but you should read terms carefully.

What to Check Before Deciding

• Interest rate and total payable amount
• Processing and prepayment charges
• Tenure flexibility
• EMI affordability

Final Takeaway

Dealer financing is convenient. Bank loan is economical. Agar thoda effort daal sakte ho, bank loan zyada sensible choice hoti hai. Convenience ke chakkar mein long-term cost ignore mat karo.