If you have an ongoing car loan, and you find another lender offering better terms, or if you are unhappy with the service offered by your current lender, you have the option to switch your loan. This is known as a car loan balance transfer.
We at Bajaj Finance offer car loan balance transfer services with an additional top-up at competitive interest rates. As the name suggests, a top-up loan is a kind of additional financing that you can avail over and above the ongoing loan.
Here are five factors to keep in mind before opting for a car loan balance transfer:
1. Compare interest rates:
One of the most common reasons for opting for a car loan balance transfer is to benefit from lower interest rates. A slight variation in the interest rate can have a significant impact on your monthly payments and overall loan cost.
A Bajaj Finserv Car Loan Balance Transfer and Top-up is available to you at a competitive interest rate starting at 10% p.a.
2. Evaluate the loan tenure:
When applying for a car loan balance transfer, consider the remaining tenure of your existing loan and how it aligns with your financial goals. A balance transfer can offer the advantage of extending or shortening the loan tenure, depending on your preferences.
Extending the tenure may lead to lower monthly payments, providing you with more breathing room in your budget. You can repay your car loan over a flexible tenure of up to 84 months with the Bajaj Finserv Car Loan Balance Transfer and Top-up.
3. Check for a top-up:
A top-up facility allows you to access extra funds for various purposes, such as car modifications, repairs, or making smart upgrades to your car. Transfer the balance of your existing car loan to Bajaj Finance and get a high-value top-up loan of up to Rs. 1.02 crore.
4. Check the eligibility criteria:
Each lender has its own set of eligibility criteria for a car loan balance transfer. It is vital to review these criteria and assess whether you meet them before proceeding with the application.
With Bajaj Finance, you are expected to meet simple criteria in order to be eligible for our car loan balance transfer and top-up.
5. Gather the required documents:
A successful car loan balance transfer requires proper documentation. To expedite the process and avoid unnecessary delays, ensure you gather all the necessary documents beforehand. Bajaj Finance requires you to submit basic documents such as KYC documents, employee ID card, bank statements, salary slips, vehicle registration certificates, and more.
