Banking · Retail Lending
What is the typical security or collateral required by a bank when sanctioning an Auto Loan for purchasing a new car?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1A fixed deposit (FD) of equivalent value with the bank
- 2Hypothecation of the vehicle being purchased✓
- 3Gold ornaments pledged by the borrower
- 4Mortgage of the borrower's existing residential property
Correct answer
Hypothecation of the vehicle being purchased
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