When you go car shopping, car dealers offer you a loan through a pre-existing tie-up with a financier. Remember, dealers usually get 1-2 per cent commission on your loan.
It makes sense to shop around by checking out what other lenders are offering—your bank, other banks, and NBFCs.
Many times, your bank may offer you a pre-approved loan. Find out if you have this offer. You can negotiate with your bank to give you a better rate on such a loan.
Use your pre-existing relationship with your bank to get a car loan at concessional rates.