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    How to Transfer a Car Loan to Another Person

    If you have a car loan over your head and you want to sell the car, though it’s tough it’s not impossible. The most preferred option is to close your loan account by prepaying the loan and then sell the car. But if you are unable to repay the loan, there is an option to transfer the loan to the next person. To be able to transfer your car loan to somebody else, you need to surrender the ownership of the vehicle to them as well. Banks might allow you to take the burden of a car loan off your shoulders by handing it over to someone else, provided you meet their requirements. Whatever be the reason for selling the car, you can transfer the loan using the process given below.

    Process of Transferring a Car Loan

    The process of transferring your car loan entails the following:

    Check your loan agreement

    Your loan documents will clearly state if it is possible to transfer your loan to another person. If you are unable to find this information, you can contact your bank and get clarification on the options of transfer and the process. If your bank has specifically mentioned that the loan is not transferrable, then it will be extremely difficult if not impossible to transfer it.

    Finding a suitable new borrower

    You will need to find a person who is willing to take on the loan and the ownership of your vehicle. Unless you make a good offer, people might generally not be interested in taking up a loan halfway through. Do your research on the used car rates and do your calculations to estimate a good price to sell your car. The fact that you are selling the loan along with the car will bring down the price of the vehicle. But this depends on how much of the loan is left for the new owner to handle.

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    Checking the borrower’s credibility

    The person who will be taking over your loan should have the same or better credit standing as you. This person should preferably not have defaulted on any loan previously. He should have a steady source of income and a good credit score depicting clear repayment history of any prior loans or credit card debts. The new borrower will have to submit KYC documents required by the banks.

    Checking Car Dealerships

    If you are unable to find a suitable buyer to transfer the loan, you can contact a car dealership. These dealerships have contacts related to purchasing used vehicles and it might be easier finding a buyer through the car dealer.

    Transferring the Car Registration

    Transferring the loan documents is not the only concern in this process. You will need to transfer the registration of the car as well. To do this, you need to visit the closest Regional Transportation Office (RTO). The RTO authorities will transfer the ownership of the vehicle to the new owner. Processing this request will take up to two weeks. The authorities will have to do a background check with the bank before they change the name in the Registration Certificate. There may be charges applicable for this.

    Insurance Requirements

    The new borrower will also have to fit the insurance requirements. You will need to check with the car insurance provider to get consent on transferring the insurance policy as well. Submit the bank documents to the insurance provider and they will make the changes. This will ensure that you don’t get charged for premiums you don’t have to pay. The new owner of the car will have to bear the car insurance premiums.

    Submitting Documents

    The new borrower will have to submit the following documentation.

    • A form requesting the transfer of the loan to their name
    • ID proof
    • Address proof
    • Income proof

    The bank may request for more documentation as they may deem fit.

    Fees and Charges

    Banks may levy processing fees and transfer fees for change of the loan borrower. Depending on the remaining loan tenure and principal, the charges will vary. You need to check with your lender to find out the charges related to the transfer process.

    Tips

    • First seek out the approval of your bank to transfer the loan before you venture into the loan transfer process.
    • Find a suitable buyer or check with car dealerships.
    • Check with the RTO and insurance provider only after you have got consent from your lender that the transfer is possible.
    • Ensure that the ownership of the car has been transferred.
    • Ensure that the insurance policy is transferred.
    • If there is any damage to the car during the process of transferring, you will be responsible for it.
    • Make sure keep the car protected and safe till the transfer is made.

    How to Transfer a Car Loan to Another Person Reviews

    • SBI Car Loan
      "SBI provides loan with lower interest"
      0.5 4.0/5 "Great!"
      I have purchased a Maruti WagonR car by using the SBI car loan. They have provided me a loan within 2 days. They have collected the all the documents and the next day they have given a cheque directly to the dealer and i have got the car on the same day. They have given me a interest rate of 11.5% which is less compared to other bank. I have selected the tenure period of 3 years and i have pre-closed in 1.5 years.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jan 20, 2019
    • HDFC Bank Car Loan
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      My car loan was taken with HDFC bank,they have given me sufficient loan amount,it is enough for me,and i applied this card through showroom ,the bank executive came to my place and took the documents and in net banking i applied i got loan soon, the rate of interest they have charged me up to 10.5% it is nominal,they have not charged me processing fee,it is zero processing fee,still this loan is running.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jan 20, 2019
    • HDFC Bank Car Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      My car loan experience with HDFC has been good and the loan amount which they had provided has been sufficient. Overall their has been a help from their customer support as well. The loan amount is 1170000 and it is good enough . The interest rate with them has been nominal and the tenure period is 5 year .
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jan 20, 2019
    • Federal Bank Car Loan
      "Very good experience"
      0.5 4.0/5 "Great!"
      I have got my card loan through FEDERAL BANK . While getting the loan the process is very easy and the documentation part is also very easy . The tenure period is sufficient and the rate of interest and processing fee is very nominal . The loan amount is very satisfactory .
      Was this review helpful? 0
      , chennai
      Reviewed on Jan 19, 2019
    • HDFC Bank Car Loan
      "Good Car Loan services"
      0.5 5.0/5 "Blown Away!"
      I have applied the car loan through online. When i chose the car loan, i have selected the HDFC bank because of the services. They have sanctioned the loan on time. I got the loan amount of Rs. 5 lakhs with the tenure period of the 3 years. They were offering me a pre-closure and partial payment with some charges.
      Was this review helpful? 0
      , new delhi
      Reviewed on Jan 19, 2019
    • Axis Bank Car Loan
      "Its Good"
      0.5 4.0/5 "Great!"
      I have closed AXIS car loan, the paper work was smooth at the time. I paid the all the emi and closed it. Finally I got the NOC letter from the bank. They responded well at the time of taking loan however I approached the bank through the dealer. Interest was almost same as other bank for my first car it was Hyundai I10.
      Was this review helpful? 0
      , secunderabad
      Reviewed on Jan 19, 2019
    • Axis Bank Car Loan
      "Satisfactory"
      0.5 4.0/5 "Great!"
      For my Mahindra verito car, AXIS bank sanctioned the loan which I was required for the purchased and they gave me the flexible emi as per my preference. I got the NOC letter from the bank for the car loan. I have taken two car loans from the same bank.
      Was this review helpful? 0
      , secunderabad
      Reviewed on Jan 19, 2019
    • HDFC Bank Car Loan
      "Hassle Free Experience"
      0.5 4.0/5 "Great!"
      I am fine with the documentation process of HDFC car loan, they done everything on time. They are providing good interest in the market. I took the loan amount around Rs. 5.5 lakhs and they approved upto 90% of loan and I got the car delivery on time.
      Was this review helpful? 0
      , lucknow
      Reviewed on Jan 19, 2019
    • Union Bank of India Car Loan
      "Good"
      0.5 4.0/5 "Great!"
      I have taken a car loan in Union Bank of India before 2 years. The rate of interest is minimum which is 9.9%. I have purchased Grand i10 car and have paid some down payment. I think they took bit longer to process the loan. The customer service is good.
      Was this review helpful? 0
      , new delhi
      Reviewed on Jan 19, 2019
    • Bank of Baroda Car Loan
      "Normal Loan"
      0.5 3.0/5 "Satisfactory"
      They have approved the loan immediately from Bank of Baroda hence i have chosen them. I got the car loan in last year August. I have applied the loan amount of Rs. 8 lakhs and they have approved the same. They have charged me a processing fee of Rs. 1800 and the interest rate is nominal.
      Was this review helpful? 1
      , hyderabad
      Reviewed on Jan 19, 2019
    • HDFC Bank Car Loan
      "Good car loan in the market"
      0.5 5.0/5 "Blown Away!"
      At the time of my purchase, i have taken a car loan with HDFC and i was not care about the interest since i don't have any idea about it. The loan got approved immediately. The documentation process was easy and smooth. Total tenure period the loan 36 months. I have not spoke with the customer care service so far.
      Was this review helpful? 0
      , new delhi
      Reviewed on Jan 19, 2019
    • Bank of Baroda Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      The experience with them has been quite good with this loan where the loan amount has been sufficient. The interest rate which they offered has been nominal when compared with the market rate and there has not been any extra charges which they had made so far. Their customer support team had also been supportive as well.
      Was this review helpful? 3
      , navi mumbai
      Reviewed on Jan 18, 2019
    • HDFC Bank Car Loan
      "Good Experience"
      0.5 5.0/5 "Blown Away!"
      Before three years I purchased second vehicle that is Hyundai I 10 , the documentation process was good with HDFC. The dealer coordinated with the bank, hence the process was quick. I got multiple options but I chosen HDFC, the Interest rate is better because I am an existing customer.
      Was this review helpful? 1
      , delhi
      Reviewed on Jan 18, 2019
    • HDFC Bank Car Loan
      "Good Experience"
      0.5 5.0/5 "Blown Away!"
      I was taken car loan from HDFC, first time I purchased SANTRO car, the documentation was very convenient. They gave me the door step service I went to the dealer and they done the process, and on time I got the car deliver. They gave me the flexible emi option.
      Was this review helpful? 1
      , delhi
      Reviewed on Jan 18, 2019
    • SBI Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      It has been quite a good experience i had with this car loan and the loan amount which they had provided has been sufficient as well. The interest rate with them was around 9.25% which was nominal when compared with the market rate. The charges which they had made has been nominal as well, and even their customer support has been responsive as well.
      Was this review helpful? 3
      , bhubaneshwar
      Reviewed on Jan 17, 2019
    • SBI Car Loan
      "Good service"
      0.5 4.0/5 "Great!"
      I have been taken my car loan with State bank of India, they have given me sufficient loan amount, and i am satisfied with the loan amount , and the rate of interest they have charged me up to 9.45% which is bit high compare to other bank,i have asked for 9 % but its okay, and the processing fee they have charged me was nominal,overall service is good.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jan 17, 2019
    • Kotak Car Loan
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have been taken my car loan with Kotak mahindra bank recently ,like 2 months before i took this loan, and i am happy with the loan amount they have given me ,it was sufficient for me, and the rate of interest they have charged me up to 9.3% which was nominal for me and the processing fee they have charged me was nominal, the loan amount process went smoothly. the overall service rendered by them was really good.
      Was this review helpful? 1
      , chennai
      Reviewed on Jan 17, 2019
    • Central Bank of India Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      It was a good experience i had with this loan and the loan amount which they had provided has been sufficient. The interest rate with them is quite nominal when compared with the market rate. There has not been any sort of additional charges which they had made so far.
      Was this review helpful? 1
      , bangalore
      Reviewed on Jan 13, 2019
    • SBI Car Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      I took my car loan in State Bank of India by last year. The charges are normal. I have spend down payment nearly 1L out of 7L. The branch is near to my residence so will never contact the customer service. The process was immediate and it was completed within 2 days.
      Was this review helpful? 2
      , hyderabad
      Reviewed on Jan 12, 2019
    • HDFC Bank Car Loan
      "Its Excellent"
      0.5 4.5/5 "Excellent!"
      HDFC gave me the door step service for the car loan. I took the loan before three years. It was the fantastic experience for me because I got the better interest, I took the loan for 5 years but I done the foreclose in three years , there was no charges for it.
      Was this review helpful? 2
      , ahmedabad
      Reviewed on Jan 11, 2019
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