Car Refinance | Loan Against Car in India | Ruloans (2024)

FAQs

Can I get loan against my car in India? ›

You can borrow up to Rs. 47 lakh with a private loan against car. However, the loan amount depends on the valuation of your asset. Bajaj Finance offers a loan against car that comes with simple eligibility criteria and minimal documents.

A lender may not approve you for a refinance unless you meet a certain loan-to-value ratio (LTV). The LTV is the loan amount divided by the appraised value of your car. Check if you'll meet this requirement by finding the value of your car using online resources.

Car refinance Eligibility

Individuals who are at least 25 years old at the time of application and no older than 60 at the end of the loan tenure. Those who have been in business for at least two years. Individuals who own a car and have paid at least 12 EMIs if there is an active loan on their car.

Refinancing and extending your loan term can lower your payments and keep more money in your pocket each month — but you may pay more in interest in the long run. On the other hand, refinancing to a lower interest rate at the same or shorter term as you have now will help you pay less overall.

A car title loan, also known as a “pink-slip loan” or “title pawn,” uses your car as the primary collateral for a loan. Car title loans allow for borrowing anywhere from 25 percent to 50 percent of the value of your vehicle in exchange for turning the title to your vehicle over to the lender as collateral.

An auto equity loan allows you to borrow money based on the equity you have in your car, which is your car's value minus the amount you still owe on it. This loan won't impact your original car loan. If your car is worth $15,000, and you still owe $10,000 on it, you can borrow against $5,000 in equity.

Key Takeaways. Don't refinance if you have a long break-even period—the number of months to reach the point when you start saving. Refinancing to lower your monthly payment is great unless you're spending more money in the long-run.

Whether you can refinance your current auto loan may depend on your credit score, as well as the lender you choose for your auto refinancing. There's no single credit score that every lender uses as a cut-off for approval or denial.

A lender might refuse to refinance a car if your current loan is too new, if your car is too old or has too many miles on it, or if your current loan balance is too low or too high. Car age and mileage considerations may differ by lender depending on the make and model of your car.

NRI will be an Applicant (Borrower), with a Resident Indian as a Guarantor or Co- Applicant. Both Applicant & Co-Applicant / Guarantor, should be of an age between 21 - 70 years. Loan must be repaid before the applicant reaches the age of 75.

What happens if car loan is not paid in India? ›

Since home and car loans are secured loans, your property or vehicle might be confiscated by the bank on non payment of EMI. If you have not repaid for more than 180 days, the lender is allowed to file a case against you. However, a criminal case can be filed only if you are a wilful defaulter or fraudulent.

You can opt for a home loan refinance if you have paid a minimum number of EMIs. Also, the home should be occupied or ready to be occupied. Check with your existing lender to know whether you are eligible. Also, a home loan refinance option works best if you do it within the first 5 years of your repayment tenure.

Or maybe you're considering a refinance and wonder if you can refinance again later. Either way, you're asking: how many times can you refinance a car? Regardless of your situation, the answer is: You can refinance your car loan as many times as you'd like. There's no legal limit.

Also, when you first applied for a car loan, a hard credit inquiry was necessary, so your credit score needs time to recover from this minor impact, which usually takes about a year. So as a best practice, it's ideal to wait at least one year before refinancing but you should have at least two years left on your loan.

Refinancing will hurt your credit score a bit initially, but might actually help in the long run. Refinancing can significantly lower your debt amount and/or your monthly payment, and lenders like to see both of those. Your score will typically dip a few points, but it can bounce back within a few months.

Importing a car is only possible via naval docks situated in Mumbai, Chennai, and Kolkata. Thus, the car should be brought to India via any of these ports only. The car should be either loaned, leased, registered or sold. It is important that the vehicle is roadworthy.

You can avail loan against property for fulfilling personal needs such as meeting expenditure on education, marriage, healthcare, business or any other lawful purpose.

Car Value - Most banks/lenders offer a maximum loan of up to 90% of the on-road price or 100% of the ex-showroom price. 2. Income - As a thumb rule, you can get a loan up to 3 to 4 times your gross annual income.