A car loan paves the way to living the dream of owning a car. It offers you the convenience of financing your purchase. However, as you progress with your car loan repayments, you may encounter other lenders offering more favourable loan terms. A car loan transfer may be worth your consideration in such scenarios.
Transferring your current car loan to another lender can grant you financial benefits with improved loan terms. Bajaj Finance not only offers a balance transfer from your existing car loan but also offers a high-value top-up of up to 190% of the car’s value with a limit of up to Rs. 52 lakh.
Here is a step-by-step guide on how to transfer your existing car loan to a different lender
- Research and compare lenders
Begin your car loan transfer journey by doing a thorough research and comparing lenders. Look for interest rates on your car loan balance transfer that can potentially maximise your interest savings in the long run. Favourable loan terms, such as extended tenure or flexible repayment options, can also enhance your borrowing experience. Additionally, look for lenders with a reputation for providing excellent customer support, as this ensures a smooth and hassle-free transfer process.
- Check the eligibility criteria
Make sure to verify if you meet the new lender's eligibility requirements before proceeding with the car loan transfer. These criteria may include a minimum credit score, age limits, minimum salary requirements, or income proofs in case of self-employed individuals. Ensuring you meet the criteria set by the new lender will increase your chances of a successful transfer and loan approval with the new lender.
Additional read: Seven tips to follow while making a car loan transfer - Submit your application
Ensure you have collected car loan balance transfer documents, such as identity proof, address proof, income documents, and loan-related paperwork for verification purposes. Fill out the car loan transfer application with precision, and submit it along with all the required documents to the new lender. This step is crucial to facilitate a smooth and efficient car loan transfer process, allowing the new lender to verify your details and assess your eligibility promptly. - Get loan approval
Once you have submitted your application and provided all the necessary documents, the new lender will carefully evaluate your creditworthiness and eligibility. They will assess your credit score, repayment history, and overall financial standing to determine whether you meet their lending criteria. Upon successful approval, the new lender will proceed to process the car loan transfer, ensuring a seamless transition of your existing loan to their institution. - Start the repayment process
Once the car loan transfer is completed and you have received confirmation from the new lender, it is time to initiate the repayment process. Adhere to the agreed-upon terms and schedule, making timely payments to avoid any penalties. Setting up automated payment arrangements can help ensure consistency in repayments and prevent any potential financial setbacks.
Bajaj Finance offers a car loan balance transfer and top-up with a host of different benefits. Customers can benefit from competitive interest rates, hassle-free online processes and can also repay their loan over a convenient tenure that ranges up to 84. You can use a car loan balance transfer and top-up EMI calculator to calculate your monthly EMIs.
Click on the below link to visit our car loan balance transfer and top-up page and learn more about this product.
