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What is a Balance Transfer?
A balance transfer on a car loan allows you to review your debt obligations as per your budget. However, you need to be aware that there is a fee associated with the balance transfer. If you are looking to cut cost on your current car loan, then you can consider going for a balance transfer. This allows you to take advantage of lower interest rates and bring down the total cost of your EMI.
Keep an eye out for offers on car loan balance transfers. Shop around to find the best deal. The internet can come to your rescue here and you could call different lenders to get an idea about the best car loan offer. Be sure to check if you are eligible to transfer your loan to the bank you are interested in. Find out the lender's rate of interest on your balance transfer and check the fees associated with it.
Once you have zeroed in on your offer, talk to your current lender about transferring the balance to a new lender. Find out the principal amount remaining, the number of months/years serviced for the loan and the prevailing rate of interest. All this can be done online with the help of a few clicks if you have a net banking account. However, you would be required to visit your home branch to see in which name the cheque or DD should be made for balance transfer.
Documents required for an auto or car loan transfer
The documentation required is generally simple and could include the following:
• A quote from the current bank detailing your outstanding principal, tenure and interest rate.
• ID proofs, address proofs and salary proofs
• Bank statements
• Passport size photographs
A balance transfer on your existing car loan could help you look at your obligations from a fresh perspective and save on interest cost. Evaluate whether you need a balance transfer and apply for a car loan through CreditMantri today!