Taking out a loan to buy your dream car is often a preferable financial option. However, when you repay your car loan, you may find yourself struggling to keep up with the high-interest rates and large instalments. In such cases, opting for a car loan balance transfer may be the ideal choice for you.
A car loan balance transfer involves switching your existing car loan to another lender with better terms and conditions.
Transferring your existing car loan to Bajaj Finance comes with the added benefit of receiving a high value top-up of up to Rs. 47 lakh. In addition, you can also get a top-up on your existing loan to cover the costs of transforming your old car, purchasing new accessories, and more.
While opting for a car loan balance transfer is a straightforward process, there are a few factors to bear in mind before making the switch.
Here are four factors that you must remember while applying for a car loan balance transfer
Assess all costs
Before applying for a balance transfer, you need to assess all costs that are involved in the transfer process. These include costs such as processing fees, documentation charges, prepayment fees, and more.
Furthermore, you should compare the interest rates of your current loan with the rates offered by the new lender. Ensure that the new loan is still beneficial after inclusion of all the additional fees and charges. A thorough evaluation of all costs can help you make an informed decision about your balance transfer.
Evaluate the loan tenure
Consider the remaining tenure of your existing loan and how it corresponds with your financial goals when applying for a car loan balance transfer. Depending on your preferences, a car loan balance transfer can allow you to extend or shorten the loan term.
Extending the tenure may lower monthly payments and allow you more wiggle room in your budget. You can also shorten the tenure and reduce the interest payments. Bajaj Finance offers flexible tenures of up to 84 months.
Additional Read: 5 Essential Questions About Car Loan Refinancing Answered
Check the lender’s eligibility criteria
It is crucial to check the lender’s eligibility criteria before applying for the balance transfer. Each lender has its own set of requirements, and you must meet them to qualify for the loan. It is important to evaluate these criteria and determine whether you meet them before continuing with the application.
For a Bajaj Finserv Car Loan Balance Transfer, you only need to meet a set of simple eligibility requirements.
Gather the necessary paperwork
The right documentation is required for a successful car loan balance transfer. Gather all relevant documentation beforehand to simplify the procedure and minimise unnecessary delays. Bajaj Finance requires you to submit basic documentation such as your KYC, employee ID card, bank statements, salary stubs, vehicle registration certificates, and more.
Keeping in mind the aforementioned factors while applying for a car loan balance transfer can help you make a well-informed decision.
Click on the link below to visit our car loan balance transfer and top-up page and know more about what this product has to offer.
