Car loan transfer refers to the process of transferring the balance of your existing car loan to a new lender. The method to transfer a car loan is quite simple and can vary from lender to lender.
If you are not too happy with your current car loan terms and if you feel you will struggle to continue repaying your current EMIs, you can start considering a car loan transfer. You will need to follow these steps to transfer your auto loan:
When you transfer your current auto loan to a new financier, you can enjoy the following benefits:
Let us assume a simple scenario to get an idea of how car loan balance transfer works. Imagine you have been paying EMIs for a car loan from Bank X. Now imagine you find a better loan with an attractive interest rate offered by Bank Y.
You need not be disappointed that you already have a loan from Bank X. If you choose the car loan transfer facility, you will be able to transfer your outstanding loan amount to Bank Y and you will no more be indebted to Bank X.
Bank Y will clear your old loan (availed from Bank X) and you can pay your EMIs to Bank Y by enjoying better loan terms and rates.
A summary from your current lender with details about your existing loan including outstanding principal, interest, and the remaining tenure
The eligibility criteria for transferring your auto loan balance may vary from lender to lender. The most common criteria include:
If you think that transferring your auto loan balance to a new lender will reduce your overall loan expenses, you should definitely go for it. You can avail the balance transfer facility for almost all private cars, whether it is a sedan or a hatchback.
However, if you think that you will end up paying more after going for a balance transfer, then you should not go ahead. Instead, you can continue looking for better loan deals to choose a good financier
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