Used Car Loan Balance Transfer: Save More on Interest

Buying a new or pre-owned car is always exciting, as it’s a significant milestone of your life. However, the high-interest rates of a car loan can make the repayments a real struggle. Enter car loan balance transfer - your friend in need indeed!  

Balance transfer enables you to transfer the outstanding loan amount from one lender to another offering lower interest and better loan terms. Intrigued? Read on to learn more! 

What is a Used Car Loan Balance Transfer?

A Used car loan balance transfer refers to the process of transferring your outstanding loan balance from your current lender to a new lender with lower interest and better loan terms.

A balance transfer can not only help you to save on the interest part but also offers other additional benefits such as flexible repayment tenure, additional top-up facility, zero or low part payment or foreclosure charges etc. Moreover, it can also help you to pay off your loan faster and get burden-free.

Reasons to Go for a Used Car Loan Balance Transfer

There can be multiple reasons to opt for a used car loan refinance:

1. Lower Interest Rate

It is the prime reason behind availing a Used car loan balance transfer. Borrowers look for a lender offering a lower rate of interest. This strategy helps them save a significant portion of the overall interest component of the loan.

2. Flexible Repayment

With balance transfer, you can get two option – first, less number of EMIs and second, same number of EMIs but a low EMI amount. Some lenders offer either of the options and some provide both the options and provide you the flexibility to choose any.

3. Better Loan Terms

Apart from lower interest rates, balance transfer also provides better loan terms. It includes perquisites like zero or lower-part payment or foreclosure charges, low processing fees and other service-related benefits.

While these reasons might seem enticing, before you apply for a balance transfer, you must first check the outstanding loan balance. How to do it? Find out in the next section.

Also Read - Important Features to Check Before Buying a Pre-owned Car

How to Check Your Used Car Loan Balance?

Here are a few methods to check your used car loan balance:

Method 1: Through Your Lending Institution's Website or Mobile App

Nowadays, almost all financial institutions provide the facility to check the loan amortisation details through their official website or mobile app. Simply log in using your credentials and track the used car loan account balance you are willing to check. Once you complete this process, you will get to know the total outstanding amount, the total amount paid and other relevant information.

Method 2: Loan Statement Sent via Mail

Most lending institutions send loan statements from time to time via mail. With the help of this method, you can get to know your loan’s outstanding balance, amount paid, number of EMIs left and other related information very easily.

Method 3: Through Customer Care

The easiest way to know the outstanding loan balance is by directly calling up the customer service executive of the lender and enquiring about your used car loan balance. Apart from a phone call, you can also contact them via SMS, email etc. After verifying your details, they will fetch the data in their system and provide you with the necessary information.

Also Read - 5 Things to Know Before Borrowing a Pre-Owned Car Loan

To Conclude

To wrap up, understanding the ins and outs of used car loan refinance can help you to make smart financial decisions in life. There can be several reasons to avail a used car loan balance transfer either to save money, lower your monthly payments, or pay off your loan faster. Before making a decision, thoroughly research and compare offers from different lenders to find the best option for your needs.

If you want to apply for a used car loan balance transfer, choose a trusted NBFC like Poonawalla Fincorp. Get lower interest rates and hassle-free processing. Apply now! 

Disclaimer

We take utmost care to provide information based on internal data and reliable sources. However, this article and associated web pages provide generic information for reference purposes only. Readers must make an informed decision by reviewing the products offered and the terms and conditions. Pre-Owned Car Loan disbursal is at the sole discretion of Poonawalla Fincorp.
*Terms and Conditions apply