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.
Here are the ways through which you can check the details of your vehicle loan:
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.
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.
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
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
Here are the general eligibility criteria you need to meet for a balance transfer:
Note: The eligibility criteria may vary with different financial institutions.
You need to submit the following documents for a balance transfer:
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!
A car loan balance is the outstanding amount of the loan that you need to repay.
No, you can’t sell a car without clearing the car loan.
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.
No, you can’t sell a car without removing the hypothecation.