Did you take the best car loan few years ago but are finding it tough to repay the monthly EMI? If the answer is yes, then we understand your struggle is very real and that arranging for money each month is a very tedious affair. In order to ensure customers all over India have less tension, we at Ruloans have a solution that can help you ease this tension for the time being. This solution is Car Refinance loan.
What is Car Refinancing?
In simple words, refinancing your car loan is getting your existing car loan terms changed or changing the lender who gives better terms. This means you take a new loan to repay the current loan. For this, your vehicle will be kept as collateral. You will have to reach an agreement with the Bank for new terms like monthly EMI, new tenure and new interest rate. You can also call this loan as commercial vehicle refinance loan.
When should you refinance your car?
If you are struggling to make ends meet and can’t manage to repay your best car loan EMI, then taking a Car refinance loan within India can help you ease this situation. We advise however that if you can manage your EMI payments, please go ahead with it.
Can I refinance my car with the same lender?
Yes. It is not necessary that you refinance your current car loan with a new lender. If your existing lender offers better refinance car loan interest rates than anyone in the market, then you can definitely refinance your car with the same Bank. There are many other largest auto finance companies, private loan providers in Mumbai, Delhi, Chennai and other metro cities in India that offer the best car refinance loan.
Is refinancing your car bad for your credit?
Not really. When you are refinancing your car loan that means you only are extending the loan tenure. This means you will still be repaying your car loan for a longer time. The only way this can affect your credit score is when you default or pay your monthly EMI late month on month.
Is it bad to refinance?
No. Using a refinance loan allows you to manage your monthly expenses along with loan repayments. This in short will ensure you don’t delay or skip your repayments. To make sure you get the right monthly EMI, using a car Loan refinancing calculator can help you understand what interest rate and tenure benefits you.
The only negative aspect here would be that you will repay a higher interest amount towards your car loan as you have extended its tenure. But it’s better to pay a higher interest amount than pay late payment charges and reduce your credit score.