Transfer Your Car Loan with a Few Simple Steps

Do you want to transfer car ownership but have an existing car loan. The good news is that you can transfer your car loan as well. A few simple steps will allow you to transfer your loan to the person buying your car.

Getting a loan to buy a car is quite common. There may be various reasons why you want to sell your car and transfer vehicle loan. To complete the process and transfer your loan to another person successfully, read on.

Understanding Car Loan Transfer

You can easily get a motor loan to buy your car. The challenge is when you want to sell your car before your loan tenure ends. Thankfully, lenders have a solution for this. You can transfer car ownership along with your loan balance to another bank account. Alternatively, you can transfer the loan to a family member or friend. The entire process may seem complicated, but you can complete it in a few steps.

Transfer Your Car Loan to Another Bank: Step-by-step Guide

You can follow these steps to transfer vehicle loan to another account.

• Step 1: Verify Your Loan Terms

This is one of the initial steps that you will have to complete to transfer car loan. Not every financial institution offers this option. So, read the terms to understand whether your lender has this clause.

• Step 2: Find a Buyer for your Car

If this option features in your terms, you can start finding a buyer for your car. It would be best to have someone willing to buy your car and repay the remaining loan amount.

• Step 3: Review the Buyer’s Profile

Once you have a buyer, review their profile and understand whether they match the loan’s eligibility criteria before initiating a car loan transfer to another person.

• Step 4: Seek Approval from the Lender

After you have selected and reviewed the buyer’s profile, you can seek the approval of the financial company. After submitting your request, you will have to wait for the approval of the lender who will check the creditworthiness of the buyer. 

• Step 5: Transfer the Car Registration

After the lender approves the transfer, you can transfer car ownership to that person. The loan balance will also be transferred to the new borrower’s name. To complete the process, submit the necessary documents and complete the paperwork.

• Step 6: Notify the Involved parties

The lender will inform both parties as soon as the process is completed.

• Step 7: Manage the Insurance

Finally, your car loan will be transferred to another bank account.

• Step 8: Pay the Fees or Charges

Lastly, you will have to pay the charges for this procedure to transfer car loan. You can handle all the fees on your own or divide them with the buyer. Decide on this beforehand to avoid hassles. 

Charges Involved in a Car Loan Transfer

There are a few charges involved with this process. These include:

• Fees for loan transfer
• Stamp duty charges
• RTO charges
• Legal fees
• Insurance

If you are selling your car to manage your finances, consider getting a quick instant loan as additional support. With a Fibe Quick Cash Loan, you can get up to ₹5 lakhs with a flexible repayment term of up to 36 months. Competitive interest rates and zero foreclosure charges makes this a smart solution. To proceed, you can download our Personal Loan App or register on our website.

FAQs on Transferring a Car Loan

Can the car loan balance be transferred?

Yes, you can transfer vehicle loan balance to another person. Follow the lender’s guidelines to carry out a balance transfer. In addition, you can opt for a car loan c to a new financial company if you get better terms. This may allow you to repay your loan more affordably. 

Can I use a balance transfer to pay off a car loan?

Yes, you can transfer an auto loan to a new lender if you get better repayment terms, such as a lower rate of interest or a longer tenure. This may help you repay easily and more comfortably. Review the balance transfer charges before you go ahead to ensure this saves you money. 

Can I transfer my car loan to a family member or friend?

You may want to transfer a car loan balance to a friend or family member for various reasons. In that case, you need to follow these steps:

• Check the person’s ability to repay 
• Talk to the lender about the transfer 
• Get approval from the lender 
• Submit the required paperwork 
• Transfer the registration and insurance 
• Pay the fees 

Can the person I’m transferring the car loan to be from a different city or state?

Yes, car loans can also be transferred to another city or state. This involves transferring the car registration and insurance documents as well as getting approval for your existing lender. 

Will my car’s ownership also transfer with the loan?

You will have two options for carrying out a car loan transfer to another person. Firstly, you can sell off your car and transfer your loan. Secondly, you can ask a family member or friend to pay off your loan. The car ownership will change in the first option and not in the second case.