Transfer of Car Loan to another bank

kingpin2005 · 12th January 2009, 19:27

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 · 13th January 2009, 10:59

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 · 31st January 2009, 17:28

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.

12th January 2009, 19:27	#1
kingpin2005 Newbie Join Date: Nov 2006 Location: New Delhi Posts: 2 Thanked: 0 Times	Transfer of Car Loan to another bank 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
	() Thanks

13th January 2009, 10:59	#2
GTO Team-BHP Support Join Date: Feb 2004 Location: Bombay Posts: 70,546 Thanked: 300,763 Times View My Garage	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.
	() Thanks

31st January 2009, 17:28	#3
dadu Senior - BHPian Join Date: May 2007 Location: Bangalore Posts: 3,803 Thanked: 462 Times View My Garage	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.
	() Thanks