Car Refinance and Interest Rates in India at Bhumi Finance
The refinance of a car refers to the transfer of official ownership from one creditor to another. Many car owners find ways to reduce their car ownership costs by refinancing. Refinancing helps you lower your monthly payments as well as lower your interest rate. Mortgage refinancing takes longer and is more complex than refinancing a car loan. A refinance might make sense for several buyers, but it only makes sense when one or more of these circumstances exist.
Car refinance and interest rates in India
1. The interest rates decreased in India
A refinancing may help you save money during the entire loan term, if interest rates have decreased by a percent or two since you bought your vehicle. India's auto loan refinance rates range from 10.65-12.75% for new and pre-owned cars and from 11.45-18.25% for used cars.
2. Improve your credit score
You can lower your interest rate by refinancing your loan. In the case of a lower interest rate refinance, you might be able to qualify if your credit score has improved or you have no credit history.
3. The interest rate you got wasn't the best one
There are usually higher interest rates on dealer-sourced auto loans in India than on bank-approved loans. If your loan balance is less than your vehicle's value, you can get more money from a refinance. You bought a car three years ago that is currently worth Rs. 5, 0000 and you still owe Rs. 3, 0000 on it. There is a chance that you can save some money by refinancing your vehicle for Rs. 4, 0000.
4. Extend the loan to lower your monthly payment
The refinancing process lowers your monthly payment. As an example, if you have an existing car loan that is due for two more years, you could refinance for four years. The additional two years term will result in a lower monthly payment, depending on the offered interest rate. You will be able to manage your financial crisis in a more timely manner by having less financial burden, but you will have to pay for an additional two years. It is important to note that used car refinance rates can vary quite a bit in India.
5. You can change lenders
You might benefit from switching lenders, but it usually depends how good your relationship is with them. If you're having trouble finding your lender or they are not supplying you with payment information, this may work to your advantage. Make sure you do your research and find the best rates.
6. Situation that caused your financial difficulties
If you feel you have some financial problems or have a setback and want a lower monthly payment and a longer loan term, refinancing could be the way to go.
7. A lease on a car will expire
As soon as your lease term is complete, you have the option of buying the new car. Bhumi Finance can help you refinance car loan and give you a reasonable interest rate.
Conclusion
You can count on Bhumi Finance to assist you in every step of the way. Apart from gold loans, personal loans, business loans, top-up loans for cars, and insurance, we also offer many other types of loans. Our registered website www.bhumifinance.com has a form you can fill out to get the information and services you need.