{"id":45109,"date":"2021-12-22T11:51:20","date_gmt":"2021-12-22T06:21:20","guid":{"rendered":"https:\/\/www.squareyards.com\/blog\/?p=45109"},"modified":"2025-11-05T13:34:09","modified_gmt":"2025-11-05T08:04:09","slug":"stamp-duty-on-car-loan-agreement","status":"publish","type":"post","link":"https:\/\/www.squareyards.com\/blog\/stamp-duty-on-car-loan-agreement","title":{"rendered":"Stamp Duty on Car Loan Agreement"},"content":{"rendered":"

Buying a car involves various hassles and unfamiliarity with taxes and legal charges can add wheels within wheels to your dreams of a four-wheel drive. With the expertise of financial institutions who offer car loans, proper knowledge of stamp duty and impending legal charges be availed.<\/span><\/p>\r\n

Stamp duty on a car loan agreement is a variable factor in different states of the country. Hence, it plays a vital role when one applies for a car loan.<\/span><\/p>\r\n

If you are puzzled about the stamp duty on a car loan agreement, this blog will help clear the confusion.<\/span><\/p>\r\n

Let’s begin!<\/span><\/p>\r\n

What Is Stamp Duty on Car Loan?<\/h2>\r\n

Stamp duty is an amount that in a way affects both the borrower and the lender of the loan. This is amongst the other charges that are levied on the agreement signed by both parties.<\/span> i.e the government of a particular state. Stamp duty is primarily a direct tax levied by the government of a particular state to legalise the asset in a transaction.<\/span><\/p>\r\n

What Is the Charge of Stamp Duty on Car Loan Agreement?<\/h2>\r\n

Normally, the stamp duty on car loan agreements varies between 5% – 8% where you are also supposed to pay an additional charge of 1% as a part of your registration charge. However, the charge may vary from bank to bank.\u00a0<\/span><\/p>\r\n

Processing Charges on a Car Loan<\/h3>\r\n
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  1. Processing charges on the car loan is basically the one-time payment that the loan borrower makes to get their application form processed.<\/span><\/li>\r\n
  2. A processing fee is never included in the loan amount that you need to pay, rather it\u2019s an amount you must pay separately.<\/span><\/li>\r\n
  3. Other than the processing fee, there are other charges that are levied on your car loan, these are as follows\u00a0<\/span>\r\n