Refinancing any loan gives you an opportunity to save a lot of money. The same applies for second hand cars too. Refinancing is possible with different lenders and also same lenders. A used car loan can be refinanced by different Banks, NBFCs and other financial credit institutions that offer such services.
In case you are having a tough time repaying your current car loan EMI, you can opt for car refinancing. With car refinancing, you can reduce the EMI burden on yourself.
Would your lender be okay with you asking to refinance the car loan?
Yes, Absolutely. They will surely be okay with you wanting to refinance the same pre owned / used car loan you took from them. This is provided when you have been a responsible customer and have been paying back all your EMI’s on time.
Are there any advantages of refinancing my car loan with the same lender?
Yes. There are few advantages you can enjoy when you refinance your car loan from the same lender. These are as follows;
Discount on new loan: Since you already have been familiar and associated with this bank already, you can expect a good discount and ease on few terms and conditions on your new car refinance loan.
Faster approvals: Another major advantage you will have on applying for car refinancing from the same lender is that they have all your personal data and information already. Hence your new loan can be approved instantly.
Avoid prepayment penalty: Since you will be closing this loan and taking a new car refinance loan from the same lender, they might charge you less or no costs on closing the loan. This also means they might exempt you from paying any prepayment loan fee too.
Better deals: Your bank knows that you will be shopping for deals by other Banks and NBFCs that would love to have a customer like you. If you are giving good business to your bank by paying all your EMI’s on time then they will definitely offer you better offers.
To conclude, getting a car refinance can help you increase the loan tenure and reduce your loan EMI. Hence check for offers from different Banks and NBFCs and choose the best deal.