Car Loan Balance Transfer: All You Need To Know

  • Published on: 18 Dec 2023
Car Loan Balance Transfer: All You Need To Know

A car loan balance transfer is a great way to reduce your borrowing costs as you can switch to another lender offering better terms. You benefit from higher financial flexibility while getting a number of other advantages.

However, like every financial decision, a car loan balance transfer also requires adequate research. You must choose a lender that offers better terms to ease your repayment. Check the vehicle loan details before you transfer it to another lender. Doing so helps ensure that you are saving on your repayment. 

Read on to learn how to check the details of your car loan, the process to transfer the loan and more.

Ways to Check Your Car Loan Balance

Here are the ways through which you can check the details of your vehicle loan:

Lender’s Portal or Mobile App

Financial institutions offer online portals and mobile apps through which you can easily know the details of your car loan. By logging in to the portal or on the app, you can know the outstanding loan amount, amount paid, next EMI date, interest rate, tenure and other information. 

Loan Statements

Lenders periodically send loan statements via email or post to your address. These statements include details, such as the outstanding balance, the tenure, rates and other loan terms.

Customer Care

Another way to check the details of your car loan is by contacting the lender’s customer care team. You can connect with them via phone, email, SMS and other modes. They will provide the outstanding loan amount and other details of your car loan after verifying your details.

Also Read: Best Way To Finance a Used Car Loan

Steps to Transfer Your Car Loan to Another Lender 

Check out the steps you need to follow to apply for a balance transfer of a car loan:

Step 1: Check the Terms of Your Ongoing Loan

You need to check with your current lender to see if they allow the balance transfer facility. For more clarity and a seamless process, you must initiate a quick vehicle loan details check by logging into your account, checking the statements, or contacting the customer service team. 

Step 2: Research and Find a Suitable Car Loan Provider

Choosing a suitable lender for the balance transfer is also essential. You need to pay attention to the interest rates, loan tenure, associated charges and other factors. This will help ensure that you save more and have a stress-free repayment experience.

Step 3: Check the Eligibility Criteria

You also need to meet the eligibility criteria set by the new lender. You can know the requirements by visiting the lender’s website or contacting their customer care team. Checking your credit score is also important as a higher score can increase the chances of approval.

Step 4: Keep the Required Documents Handy

For a smooth transfer of your car loan, check the document requirements and keep them handy for submission. 

Step 5: Submit the Application

Once you have everything ready, visit the lender’s website or branch to submit your balance transfer application. After the new lender processes and approves it, your loan with the existing lender will be paid off and you will repay the loan as per the new terms.

Also Read: Mistakes to Avoid While Taking a Car Loan

Eligibility Criteria for a Car Loan Balance Transfer

Here are the general eligibility criteria you need to meet for a balance transfer: 

  • You must be an Indian national
  • The borrower’s minimum age must be 18 years and the maximum age must be 80 years
  • You must have a minimum car loan repayment record as per the lender’s requirements

Note: The eligibility criteria may vary with different financial institutions.

Documents Required for a Car Loan Balance Transfer

You need to submit the following documents for a balance transfer:

  • PAN card
  • Employee ID card
  • KYC Documents: Aadhaar card/passport/voter’s ID/driving licence
  • Financial Documents: Salary slips and bank statements for the last 3 months
  • Vehicle registration certificate
  • Copy of the vehicle insurance

Note: The document requirements may vary with different financial institutions.

With this information in hand, you can easily apply for a balance transfer of a car loan. If the savings in balance transfer is not ideal for you, consider getting a personal loan to consolidate your loans or pay off the car loan entirely. Fibe offers affordable Personal Loans of up to ₹5 lakhs. With this loan, you enjoy instant disbursal with no restriction on end-use. 

Download the Personal Loan App or register on our website to enjoy a quick and easy application process!

FAQs on How to Check Car Loan Balance and Transfer the Loan

What is a car loan balance?

A car loan balance is the outstanding amount of the loan that you need to repay.

Can I sell my car with a loan?

No, you can’t sell a car without clearing the car loan.

Can I transfer a car loan to another person?

Yes, some financial institutions may allow you to transfer the car loan to another person. You can know this by doing a quick vehicle loan details check. 

Can a hypothecated car be sold?

No, you can’t sell a car without removing the hypothecation.


Our top picks

Can Millennial Stress be Resolved by Financial Wellness?
Finance | 3 mins read
How Organisations Can Measure the Impact of Financial Wellness Programs
Finance | 3 mins read
How Can HR help Overcome Staffing Challenges in the Digital Age?
Corporate | 3 mins read
5 Signs of A Good HR Function
Corporate | 3 mins read