How to Do a Car Loan Balance Transfer and Get a Top-Up Loan on It
How to Get a Top-Up Loan During Car Loan Balance Transfer
Picture yourself cutting down on your current car loan cost and getting more cash while at it. This is a possible scenario when you tap into a car loan balance transfer and take a top-up loan. Let’s explore the two concepts in detail.
What is a Car Loan Balance Transfer?
A car loan balance transfer is when you move your existing car loan from your current loan provider to another. Your new financier pays your other loan and can also give you a top-up loan at a new interest rate and other friendlier loan terms.
Why Should You Consider Car Loan Balance Transfer?
When you transfer your car loan, you get several benefits, some of which include:
● Better loan terms: During a loan balance transfer, you can find a new financier who offers flexible loan repayment terms. You can benefit from extended repayment periods and relatively lower EMIs (equated monthly installments), helping you manage other expenses comfortably.
● Lower loan rates: Car loan interest rates can change over time. So, when you transfer your loan to a financier who offers you lower rates, you significantly save money over the long run.
● Improved customer experience: Customer service is something you should be keen on when choosing your financier. So, getting a car loan balance transfer may be your escape route from unresponsive support from your existing loan provider.
● Extra cash through a top-up loan: The top-up loan on your car loan balance transfer can go a long way in paying off your other current loans and debts or providing additional financial aid to support your current needs. With a top-up loan at a lower interest rate, you can set free from your pressing debts consuming a large sum of your monthly income.
What is a Top-Up Loan?
A top-up loan is an additional loan you take from a loan provider on top of the car loan you already have. For example, you can shift your existing car loan balance to a new loan provider as a gateway to qualify for a top-up loan.
You can even use the top-up loan money to pay off your other debts, which is a good approach to reducing your debt amount. Ensure you prioritize paying off your debts with a higher interest rate.
You can also compile all your small debts and pay them altogether or settle any upcoming emergencies with the top-up amount without the need to apply for another fresh personal loan.
How to Do a Car Loan Balance Transfer and Also Get a Top-Up Loan
To transfer your can loan balance to a new loan provider and subsequently apply for a top-up loan, you need to follow the steps below:
1. Check Your Current Car Loan Terms
Review your existing used car loan contract to examine if there are special clauses about the car loan takeover. Check if your current financier approves of the process. Though most financiers have no issue with such procedures, you should get clarity from the terms of your loan contract.
2. Find a Financier Offering Better Car Loan Rates
Research and choose a financier who offers better used car loan terms and interest rates to transfer your existing car loan. Ensure you take quotes from several loan providers and compare their terms before picking the one that best suits your financial needs. Also, consider their loan processing fees, penalties, and hidden charges to be on the safe side.
3. Inspect the Eligibility Criteria to Secure a Car Loan
When you find a financier giving you better loan terms, don't stop at that. Check their eligibility criteria to see if you are a good fit. You can confirm this by critically examining the eligibility document or seeking clarity from the financier's representative.
At this point, you should also examine your current credit score and negotiate your chances of getting a top-up loan approved.
We at SK Finance offer hassle-free used car loans with minimal eligibility criteria. Whether you’re a salaried employee or a small business owner, we help you get easy car loans with minimal income proofs and flexible repayment terms.
4. Prepare Your Car Loan Balance Transfer Documents
Go through your new financier's loan document checklist to ensure you have all the necessary documents. This will make the loan approval swift and smooth. Though the documents required may be similar to what your previous financier had requested, it doesn't hurt to tick the documentation checklist box.
5. Apply for a Car Loan Balance Transfer and a Top-Up Loan
After putting in all the necessary documentation, begin the car loan balance transfer application process. Request a top-up loan for extra financing needs. The top-up amount you qualify for will depend on your current car loan balance, disposable income, and repayment ability.
6. Close Up Your Existing Car Loan
Once your new financier approves your car loan balance transfer and your desired top-up loan, they will settle your existing loan with your existing loan provider. This, in effect, closes your existing car loan. However, ensure you collect a loan NOC letter from your existing car loan provider.
You can now enjoy the benefits of your used car loan and top-up loan from the new financier. Keep paying your EMIs in time and secure your future.
Ready for a Car Loan Balance Transfer and a Top-Up Loan?
When you transfer your car loan balance and get a top-up loan, you take advantage of better loan terms, lower your financial burden, and get access to additional funds.
Ready to enjoy these benefits? Visit our nearest branch to discuss transferring your existing car loan for the car you’re using. Our staff will help you negotiate the best terms and rates as per your financial needs and repayment capabilities.
Apply for a car loan now hassle-free and have the funds credited to your account in no time.
