Can I buy a used car without transferring the RC and still get a loan?

Most lenders will not approve a used car loan unless the RC is transferred into the buyer’s name. Even if the deal with the seller is complete and the car is already with you, the RC is what legally proves ownership. For the lender, this matters because the car itself is the security for the loan. If your name does not appear on the RC, the lender cannot register its interest in the vehicle, which makes the loan legally weak.

The situation becomes stricter if the seller still has an active loan on the car. In such cases, the existing loan must be fully closed and an NOC obtained from the seller’s lender. Only after that can the hypothecation be removed and the RC transferred. Most lenders don't fund a car that is still linked to someone else’s borrowing.

Before applying, ask for a copy of the RC, insurance papers and loan closure proof, if any. If the RC transfer has already been filed, an RTO acknowledgement can help, but final approval usually waits until the RC update is complete.