Hypothecation
The car is technically owned by the bank until you pay the last EMI. The RC (Registration Certificate) will have a "Hypothecated to [Bank Name]" stamp. You need a NOC from the bank to remove this after the loan ends.
Zero Dep Insurance
A must-have add-on. Without it, in case of an accident, you pay for the depreciation of replaced parts (plastic/glass). With "Zero Dep," the insurance pays 100%.
Foreclosure Charges
Penalty for closing the loan early. Usually 3-5% of the outstanding principal. Some PSU banks offer zero foreclosure charges after 2 years.
Negative Equity
A situation where your outstanding loan amount is higher than the current market value of your car. This happens if you take a long tenure (7 years) with a low down payment.
BH Series Registration
Bharat Series (BH) number plates allow you to move your car across states without re-registration. Ideal for transferable employees. Road tax is paid every 2 years instead of a lump sum.