So you purchased a car with the help of a loan. But, not you feel like your loan provider is imposing new rules and regulations that you weren’t earlier aware of. Don’t worry, you can get a car loan transfer and wiggle your way out of this sticky predicament.
So, what exactly is a loan transfer?
A loan transfer offers you the opportunity to move your existing loan from your current provider to another provider of your choice. Most individuals choose to transfer their loans when they find that their current car loan interest rate is far higher than they had assumed, or if they’re being offered better tenures or payback options by competitors.
How does the car loan transfer work?
This is actually quite simple. Let’s say you’ve taken a loan from Bank A to purchase a car. At some point during the tenure of the loan, you’ve decided that Bank B has a far better deal. You can approach Bank B and ask to transfer your loan to them. If they agree, Bank B will pay off the outstanding loan amount pending with Bank A, and then you can continue to pay off your loan, with the new plan that Bank B has offered you.
How do I find the best deal for the transfer?
If you’ve decided to transfer your loan from one provider to the next, it’s important to ensure that you make the right choice about who your next loan partner should be. To ensure you find the best deal, here are a few steps you can follow:
- Do Your Research – To find the best deals, it’s important to check all the available options. Spend some time looking up which financial institutes offer lower interest rates or flexible plan options. Once you’ve completed an exhaustive study of all the available options, you can decide on which institute you’d like to partner with.
- Strike a Deal – Before you approach the new financial institution, it’s worth sitting down with your current loan provider and trying to negotiate a deal. If your provider isn’t willing to make a compromise, you can visit the institutes you’d like to transfer your loan to, and ask them about the best possible deal they’re willing to offer you.
- Think About Your EMIs – Before you make the switch, it’s important that you consider how much your monthly outgoings will be. If the new provider is offering you a lower rate of interest on your loan, it doesn’t automatically mean that your EMIs will be lower. You also need to think about the tenure of the loan. If your loan is term has been decreased considerably for whatever reason, your EMIs might increase.
If you’ve considered all these factors and still want to transfer your loan, it’s important to get all your paperwork in order. After you have furnished all the documents for the transfer, the bank will run a background check to verify that all the information is legitimate. After this, your car loan balance will be transferred to the new bank.