Transfer of Car Loan to another bank

[kingpin2005]

Hi,

I bought 2nd Hand Car and i got the loan financed from ICICI Bank (Maha Chor bank). However i would like to know is there any provision to get the loan transferred from ICICI to any other bank on lower EMI.

Please advise.

Thanks

Hitender Yadav

[GTO]

So basically, you want to refinance your car? Some factors to consider:

- Is ICICI going to charge you a foreclosure penalty? It's generally between 2 - 5% of the outstanding principal and I am pretty sure they will.

- What is the total loan duration? And how many EMIs still left to go?

- What was the prevailing interest rate at the time you bought this car? Are the current rates any better?

Generally, it is best to stick to the original financer for 2 - 3 year loans. Your answers to the questions above will help in weighing the pros / cons specific to your loan.

[dadu]

ICICI bank charges 5.5% foreclosure and usually this is also a floating rate and prevailing rates as per closure date will apply.

You would have paid service charges also while taking the loan.