Car loans often come handy as an affordable and convenient financing option to purchase your dream car. However, while you are repaying your car loan, you might discover a new loan from a different lender with better terms. In such a situation, transferring your car loan may result in a lower monthly payment.
Bajaj Finance provides the facility to transfer your existing car loans while also giving you access to additional funds. You can get a high-value top-up loan that helps you to address a wide range of financial requirements.
5 Key Benefits of Transferring Your Car Loan
- Affordable interest rates
If you are paying high-interest rate on your current car loan, transferring your balance to get a low interest rate can be helpful. It will help you save money over the tenure of the loan. Even a seemingly insignificant decrease in interest rates over the loan tenure can result in huge savings.
You can avail of a Bajaj Finserv Car Loan Balance Transfer with interest rates starting at 10% p.a. - Savings on loan costs
A car loan balance transfer can lead to an overall reduction in the cost of the loan beyond interest rates and repayment terms. Factors such as lower interest rates, favourable repayment schedules, and more can help you reduce your loan cost.
- Improved loan features
Lenders often provide you the option to make prepayments on your car loans. However, some lenders impose penalties for such prepayments, which can limit your flexibility.
If you're in this situation, you can choose a Bajaj Finserv Car Loan Balance Transfer with a Top-up facility. This option gives you the freedom to make multiple prepayments at your convenience, with no additional charges involved, helping you manage your loan more efficiently. - Top-up loan amount
Some lenders also offer the option of availing of a top-up loan amount when you are opting for a car loan balance transfer. This feature allows you to access additional funds on top of your existing loan amount.
Bajaj Finance not only allows you to transfer your existing car loan but also provides you with a high-value top-up of up to 190% of the car’s value with a limit of up to Rs. 52 lakh.
Choosing a car loan balance transfer can be a wise decision due to its potential advantages. However, it's crucial to exercise diligence by carefully examining the terms of your existing loan and comparing them with those offered by the new lender. This thorough evaluation ensures that the benefits of the transfer align with your financial requirements, ultimately leading to a more informed decision.
Should You Opt for a Car Loan Balance Transfer? (Pros & Cons)
Pros |
Cons |
Lower interest rates: A balance transfer can help reduce your overall interest burden by switching to a lender offering more competitive rates. |
Processing time and charges: Transferring a loan involves paperwork, time, and may include processing fees or other hidden charges. |
Improved savings: With reduced EMIs or shorter tenure, you can save significantly over the long term. |
Eligibility criteria: Not all borrowers qualify. You may need a good repayment history and credit score. |
Top-up loan facility: Many lenders, like Bajaj Finserv, offer a top-up option to access extra funds without applying for a fresh loan. |
Impact on credit score: Frequent loan transfers or rejections might slightly affect your credit score. |
Better terms & flexibility: New lenders may offer better features like zero prepayment charges or flexible EMI options. |
Reset of loan tenure: The new tenure might extend your repayment period, increasing the total interest paid. |
