Team-BHP > Team-BHP Reviews > Indian Car Loans & Insurance


Reply
  Search this Thread
5,998 views
Old 29th November 2022, 02:16   #1
Newbie
 
Join Date: May 2022
Location: Bengaluru
Posts: 4
Thanked: 2 Times
What happens to the car loan, when I transfer from one state to another state in India?

Hello everyone,

My friend has some questions regarding the Car Loan Transfer from one state to another (India).

I don't know much about this and hence posting it out here. Kindly throw some light in this regard.

He has the below questions.

1. Scenario 1- Car showroom price is 16.5 L. Road tax is 2.8 L (bangalore). He took a car loan for total (16.5 L + 2.8 L). Suppose he get the NoC from the bank for inter state transfer and do all the things after that (RTO and all) and he has now the NoC from Bangalore RTO as well. After six months, he wans to transfer the car to Delhi, and re-register there in Delhi at 1.7 L. So what will happen to his Car loan in Bangalore? Will it get closed or will it get transferred to Delhi. If it's getting transferred to Delhi, what will happen to his EMIs. Will the EMI amount will come down as the re-registration in Delhi was done from pocket?

2. If he balance transfer his remaining car loan amount e.g. from SBI to HDFC in bangalore itself, do he needs to change the hypothecation in the RC from SBI to HDFC?
DeepuSultan is offline   Received Infraction
Old 29th November 2022, 12:06   #2
GTO
Team-BHP Support
 
GTO's Avatar
 
Join Date: Feb 2004
Location: Bombay
Posts: 70,335
Thanked: 298,732 Times
Re: What happens to the car loan, when I transfer from one state to another state in India?

Mod Note: Thread moved to the car loan sub-forum!
GTO is offline  
Old 29th November 2022, 20:21   #3
BHPian
 
Join Date: May 2013
Location: Gurgaon/Jind
Posts: 432
Thanked: 644 Times
Re: What happens to the car loan, when I transfer from one state to another state in India?

Hi Deepu,

I will try to answer your questions as a close friend had done it and I had handled the process for him.

He had transferred the car from Delhi to Bangalore.

So in his case he had to get NOC issued from his bank that the bank doesn’t have any issues with the car moving out of state however everything related to the loan and it’s terms remain same. So for him the EMI, ROI, tenure everything was same. He had paid the RTO charges from his pocket and got the new RC. Since it was already on loan the NOC mentioned it and while getting the NOC from Delhi for Bangalore same would have been there.( I didn’t read the contents of the NOC but I believe that’s how it would work since his new RC had Bank’s name). In your friend’s case I believe it would remain same. Your friend will have to apply for a road tax reimbursement from Bangalore RTO, the RTO will refund the road tax amount on pro data basis. Once your friend gets the car registered in Delhi he will have to pay the registration amount here and everything related to the loan stays same. This is what I believe would happen. Experts can comment if I am wrong here.

For point number two yes hypothecation will have to be changed. HDFC will issue the cheque in favour of SBI and the RC will need to be updated.
nik0502 is offline  
Reply

Most Viewed
Thread Tools Search this Thread
Search this Thread:

Advanced Search

Copyright ©2000 - 2024, Team-BHP.com
Proudly powered by E2E Networks