You can assess your financial commitments in accordance with your budget if you balance transfer your auto loan. You should be informed that there is a fee for the balance transfer, though. You may want to think about a balance transfer if you want to lower the cost of your current car loan. This gives you the opportunity to benefit from reduced interest rates and lessen the overall cost of your EMI.
Watch for offers for transferring the balance of a vehicle loan. Compare prices to get the greatest deal. You can call many lenders to learn more about the greatest vehicle loan deal, or you can use the internet to your advantage in this situation. Verify your eligibility before transferring your loan to the bank of your choice. Find out the interest rate for your debt transfer from the lender and look into any associated costs.
Talk to your present lender about moving the sum to a new lender once you have decided on your offer. Find out how much of the loan’s principal is still owed, how many months or years have been spent servicing it, and what the current interest rate is. If you have a net banking account, you can do all of this with only a few clicks online. To find out under whose name the check or DD should be made for the balance transfer, you would need to visit your home branch.
When does car loan transfer make sense
- After you have already taken out one, you may find a better auto loan package with better terms and features.
- If both your income and financial situation as a whole have improved.
- if throughout the term of your current loan, your credit score has improved.
Benefits of car loan balance transfer
- Affordable vehicle loan interest rate
- Better loan features
- Lower fees and charges
- Better repayment terms
- Overall reduction in loan cost
Documents required for car loan transfer
The required documentation is typically straightforward and may include the following:
- A statement from the present bank outlining the amount owed, the term, and the interest rate
- ID proof, address proof, income proof
- Bank statements
Various lenders may have different requirements for transferring your auto loan balance. The most typical standards include:
- When you apply for the loan, you must be at least 21 years old.
- At the end of the loan term, you must be 60 years old or younger.
- For the car you own, you should have a minimum 9-month payback history. (Lenders may have different policies on this.)
You might be able to see your commitments differently and save money on interest by transferring the remaining balance of your old auto loan. Go for it if you believe that moving your auto loan balance to a different lender will lower your overall loan costs. Whether it’s a sedan or a hatchback, practically all private vehicles are eligible for the balance transfer option.
However, you shouldn’t proceed with a balance transfer if you believe that you may wind up paying more as a result. Instead, you might keep searching for superior loan options to select a reputable financier.