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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.

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    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

    • IndusInd Bank Car Loan
      "Best Service"
      0.5 5.0/5 "Blown Away!"
      I have taken a car loan with IndusInd bank and the experience was good, the process was smooth and i received my loan amount on time. Customer service was good and they followed up on time. The rate of interest was nominal and the tenure period for this loan is 3 years.
      Was this review helpful? 1
      , hyderabad
      Reviewed on Nov 16, 2018
    • SBI Car Loan
      "GOOD SERVICE"
      0.5 5.0/5 "Blown Away!"
      I have applied for the card loan with the STATE BANK OF INDIA where the process is very good and simple to get the loan as well as the loan amount is sufficient from this bank added on that the rate of interest is nominal when compared to the others.
      Was this review helpful? 1
      , bangalore
      Reviewed on Nov 16, 2018
    • SBI Car Loan
      "Good Car loan"
      0.5 5.0/5 "Blown Away!"
      I am not sure about the SBI customer care. I have gone through all the details with the dealer. I have got the loan within 10 days. I have received the car loan of Rs. 4 lakhs and they have provided the interest rate of 8.99% and I'm okay with it. I am paying the EMI of Rs. 14000 per month and i have chosen the tenure period for 3 years.
      Was this review helpful? 0
      , chennai
      Reviewed on Nov 16, 2018
    • HDFC Bank Car Loan
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I am holding my car loan with HDFC bank, the rate of interest they have charged me was up to 7.5% it was nominal for me, and even Emi they are taking in month nominal only and they have not charged any processing fee and loan amount was sufficient, overall service was good.
      Was this review helpful? 1
      , noida
      Reviewed on Nov 16, 2018
    • Kotak Car Loan
      "Average service"
      0.5 3.0/5 "Satisfactory"
      I have been holding my car loan with KOTAK MAHINDRA BANK, there service was average, they have given me sufficient loan amount , the rate of interest they have charged me was nominal i donâ??t remember what was exact rate of interest percentage, and they did not charged any processing fee in this loan amount , so far experience was good.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Nov 16, 2018
    • review Car Loan
      "Good Car loan services"
      0.5 4.5/5 "Excellent!"
      I don't have much interaction with the Chola mandalam customer care people or employees. They have provided the interest rate of 14.5%. I have purchased my car loan 3.5 years. I got the loan amount of Rs. 1.52 lakhs. I pay the EMI of Rs. 4895 and i have chosen the tenure period of 36 months and I'm going to close the loan in another 7 months.
      Was this review helpful? 0
      , gorakhpur
      Reviewed on Nov 16, 2018
    • Axis Bank Car Loan
      "Best Service"
      0.5 5.0/5 "Blown Away!"
      My experience was good with AXIS bank for car loan, the loan amount was based on my requirement and the rate of interest was nominal when compared to others. Customer service was good with AXIS bank and the tenure period for this loan is 5 years.
      Was this review helpful? 0
      , bangalore
      Reviewed on Nov 16, 2018
    • ICICI Bank Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      The experience during my car loan has been good and the loan amount whcih they had provided has been sufficient as well. The interest rate whcih they had been charging had been nominal when compared. There has not been any sort of charges which they had made as well.
      Was this review helpful? 1
      , noida
      Reviewed on Nov 15, 2018
    • Tata Finance Car Loan
      "Very quick"
      0.5 4.0/5 "Great!"
      I have taken a car loan with Tata Finance one month ago. They have provided me 95% on road price. The customer service is good. I am satisfied with the rate of interest. I have purchased a TATA DICOR BUZZ. I just paid 34,000 rupees as a down payment and the rest of the amount converted into EMI for 5 years.
      Was this review helpful? 0
      , thane
      Reviewed on Nov 15, 2018
    • HDFC Bank Car Loan
      "Very good experience"
      0.5 5.0/5 "Blown Away!"
      I have taken a used car loan with HDFC BANK and it was closed 3 to 5 years ago. I have purchased a Maruti Alto. My experience is good and the rate of interest was 14% which am satisfied. I have charged processing fee but it was nominal. The documentation process was lengthy and it was easy. I have to sign the documents multiple times.
      Was this review helpful? 0
      , new delhi
      Reviewed on Nov 15, 2018
    • HDFC Bank Car Loan
      "Need to reduce ROI"
      0.5 3.5/5 "Pretty good"
      My experience was good with HDFC bank for car loan, the loan amount was based on my requirement and the rate of interest was little high when compared to others. Customer service was good and they responded on time. The tenure period for this loan is 4 years.
      Was this review helpful? 0
      , new delhi
      Reviewed on Nov 15, 2018
    • IndusInd Bank Car Loan
      "Average service"
      0.5 3.0/5 "Satisfactory"
      I have been using my car loan with Indusind bank a long back, i have took this loan from my native and there service was up to the mark and they have charged nominal rate of interest to me and through showroom only i got this car loan and there customer support team is good they are very co-operative with me and i have closed this loan .
      Was this review helpful? 0
      , chennai
      Reviewed on Nov 15, 2018
    • Axis Bank Car Loan
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have been holding my car loan with Axis bank, i have taken celerio car they have given me sufficient loan amount and there rate of interest they have charged me 12% it is nominal for me and there processing fee they have charged me nominal only.
      Was this review helpful? 1
      , faridabad
      Reviewed on Nov 14, 2018
    • HDFC Bank Car Loan
      "Good card"
      0.5 5.0/5 "Blown Away!"
      My credit card was taken with HDFC BANK , i am holding this card for past 1month . I have not use this card so it is very early to comment . There is joining fee at the time of getting the card . The credit limit is good when compared to other cards. Overall experience was good .
      Was this review helpful? 1
      , hyderabad
      Reviewed on Nov 14, 2018
    • Axis Bank Car Loan
      "Good service"
      0.5 4.0/5 "Great!"
      I have been using my car loan with Axis bank , the call amount they have given me sufficient and i have take my Nissan Renault car from this loan and there rate of interest they have charge me was nominal and the processing fee which they have given me is nominal, and the tenure period they have given me is up to 3 years.
      Was this review helpful? 1
      , secunderabad
      Reviewed on Nov 14, 2018
    • SBI Car Loan
      "Average Service"
      0.5 3.0/5 "Satisfactory"
      It has been a good experience i had with them where the loan amount whcih they had given has been sufficient and the loan has been arranged by the car dealer. The interest rate with them has been nominal when compared with the market rate and there has not been any charges which has been made by them.
      Was this review helpful? 3
      , pune
      Reviewed on Nov 14, 2018
    • HDFC Bank Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      The experience i had with this Car Loan has been good and the loan amount which they had provided has been good as well. The interest rate with them has been nominal when compared with the market rate and there has not been any charges which they had been making so far.
      Was this review helpful? 2
      , hyderabad
      Reviewed on Nov 13, 2018
    • Bank Bazaar Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      It was quite a good experience i had with the services of them and i am using it for the last one year. It was quite good in comparing different rate of interests through their web portal, i had also been using their mobile application which has been convenient. Both has been having a good user interface.
      Was this review helpful? 2
      , chennai
      Reviewed on Nov 13, 2018
    • HDFC Bank Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      I had chosen to go with them since they had been providing a lower interest rate when compared with the market rate. The process has been convenient and they had even given some discounts. The loan amount has been sufficient and there has not been any extra charges made by them.
      Was this review helpful? 1
      , chennai
      Reviewed on Nov 13, 2018
    • ICICI Bank Car Loan
      "Good services from ICICI"
      0.5 5.0/5 "Blown Away!"
      They have provided me a 9.5% interest rate for my car loan. I have bought the car loan by last month. The process of the loan was easy and the same day itself they have approved the loan and sanctioned to the dealer. I have applied the car loan of Rs. 8 lakhs. I'm yet to pay the first month EMI and it will be deducted from my account.
      Was this review helpful? 3
      , ahmedabad
      Reviewed on Nov 13, 2018
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