About Car Loan Balance Transfer
Everyone wants to own his/her own car, but there are many people who face many problems in buying a car. To avoid these problems, they can apply for a car loan to fund the vehicle.
What if you find a lender offering lower rates on a car loan as compared to the one charged to you?
You have the option of Car Loan Balance Transfer. It provides you with the facility to transfer your car loan. With the help of this scheme, a person can transfer their car loan from the current bank to another bank having lower interest rates as compared to the current one.
What is a Car Loan Balance Transfer?
The scheme of Car Loan Balance Transfer is a simple and easy process by means of which a person can switch their current car loan from their bank to another. The reason for this transfer is the difference in the rates offered by other banks. This facility is offered by all leading banks all over the country.
Why should people go for Car Loan Balance Transfer?
Transferring a Car Loan from one bank to another is a facility availed by many people. There are various reasons that one may think to transfer the loan from the current bank to another.
One might think of it due to the following reasons:
1. Lowering the rate of interest: If the person finds that the interest rates charged to him/her are higher than the current interest rate in the market, then he/she can think to switch the loan to another bank.
2. Changing the terms of the loan: In case, the person wishes to increase the tenure period of the existing loan but the lender denied doing that, then he/she can think to avail the services offered by another bank.
3. Reducing the monthly payments: If you transfer your loan, your interest rate changes, which further lowers the monthly payments. It is a significant benefit if your income in the situation has changed.
Steps to transfer your loan from one bank to another:
1. Search for the schemes offered by various lending companies and the rate of interest charged by them. Determine the total charges involved in transferring the loan.
2. Making a request to the current lender to transfer the loan.
3. The current lender will give a no objection certificate, an account statement showing the outstanding loan amount.
4. The new lender approves the loan on the basis of these documents and will inform the lender for the same.
5. The new lender will pay the rest of the payments to the existing bank and take the car documents from them.
Leading Car Loan Providers (Click to Apply)
- HDFC Car Loan
- Bank of Baroda Car Loans
- Canara Bank Car Loan
- IndusInd Bank Car Loan
- State Bank of Hyderabad Car Loan
- SBI Car Loan
- ICICI Bank Car Loan
- AXIS bank Car Loan
- IDBI Car Loan
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