Car loan refinancing or car loan balance transfer is the process of switching your ongoing car loan with that offered by another lender. It can be particularly useful if you find a loan being offered at better terms than your ongoing loan.
Before you take the plunge, here are some of the most frequently asked questions about car loan balance transfer and the answers to them:
Why should you consider refinancing your ongoing car loan?
There are numerous benefits of refinancing your ongoing car loan. One is the ability to reduce the interest rate on offer. This can help you lower your EMIs and ease the financial burden.
Flexible repayment tenures, lower interest rates, reduced EMIs, and quick disbursal within 48 hours* are some of the benefits that make car loan balance transfer to Bajaj Finance an especially useful option.
How do you become eligible for a car loan balance transfer?
In order to refinance your car loan, meeting a specific set of criteria is crucial. The car must be registered in the owner's name, and regular payment of current EMIs is essential. A good credit score opens the door to more benefits, while a steady income and a positive credit history offer are likely to get you a better deal. It should also be kept in mind that the car should not be more than a 10 years old.
What are the documents needed for car loan balance transfer?
Presenting a set of necessary documents is critical to availing of a loan and refinancing your car loan works in the same way. While the current loan statement reveals the current financial status, the KYC documents provide authenticity.
Proof of steady income such as salary slips or bank statements, acts as a map to their financial stability. Address proof ensures lenders can locate and support them. Lastly, the NOC from the current lender serves as permission to start the refinancing journey. With these documents, the process of applying for a refinancing option with Bajaj Finance becomes easy.
How to apply for car loan refinancing?
To apply for refinancing a car loan with Bajaj Finance, applicants must first check their eligibility. Once done, you will have to submit the necessary documents. These documents are then verified, while the car's worth is evaluated.
Following the evaluation, a loan offer will be generated. At this stage, you will be asked to review the terms and conditions of your new loan agreement carefully. Once you are satisfied, you will be asked to complete the necessary formalities, facilitating the transfer of the existing loan.
