Ruloans believes in educating the customer so they can make the right decision. Hence we began an all new series titled “Knowledge Center” where our sole goal is to educate the end customer with information which will help them take the most important financial decision of their life i.e. applying for any type of a loan.
Today, we shall be answering 5 important questions you need to understand before you apply for a car refinance loan in India.
What is car loan refinancing?
The meaning of car refinance loan is that you take a new loan over your existing car loan. You can do this either with the same Bank/NBFC from where the loan is taken or else apply for a car refinance loan from any lender in India.
Can I refinance my car with the same lender?
As mentioned above, yes you can refinance your car with the same lender. But before you do so, please compare interest rates and terms being offered for car refinance loans of different lenders and accordingly make a choice.
When should you refinance your car?
You can refinance your car when it is getting difficult for you to repay your monthly EMI. Instead of defaulting on payment and being asked to pay late payment charges you can discuss with your lender for refinancing.
Is refinancing your car bad for your credit?
Not really. Refinancing your car is not bad for your credit. Your credit is affected when you default on your monthly EMI’s. Paying late or missing on your monthly EMI will affect your credit score. Refinancing doesn’t have that kind of an impact.
Which bank is best for refinancing?
There are major Banks, NBFCs and other lending companies that offer car refinance loans on commercial vehicles. Since there are many such lenders in the market, hence it might get very confusing as a customer for you.
In order to clear this confusion, Ruloans developed a solution where you can visit our website, apply for a car refinance loan and compare options from all the major Banks and NBFCs in India. This can help you save time and money. You can also get the best deal too.