How to transfer two-wheeler loan from one person to other
If you are looking to sell a two-wheeler without paying off your loan. In that situation, you can consider transferring your existing two-wheeler loan to another person. But there are certain requirements to do that. If you are planning to transfer your loan to someone else, then you should keep the following points in mind:
Two- Wheeler Loan Transfer Process
Check out the current loan agreement details
Before going for a loan transfer to another person, make sure that you have gone through terms and conditions. You can find out the information about transferring your two-wheeler loan to another. You can also contact your lender with whom you have taken the loan and check if such an option is available.
Find a suitable new borrower with good credit history
The next step is to find a reliable borrower who can take over your Two-wheeler loan. Ensure the new borrower must be having a good credit score with a good repayment history, stable income, and all the supporting documents in the form of income proofs, residence proof, etc. In short, must be having all KYC documents as per the requirement of the lender. Post evaluating the creditworthiness, the lender transfers the two-wheeler loan.
Checking car dealerships
If you are not able to find the most suitable buyer to transfer your loan, you can also contact two-wheeler dealers in the marketplace. These dealerships have contacts related to purchasing used vehicles. It makes the whole procedure of transferring two-wheeler loans from one person to another much easier.
Transfer the car registration certificate
The existing owner is required to transfer the registration certificate along with the loan to the new buyer. For doing this you need to visit your closest Regional Transportation Office RTO. They will help you in transferring the ownership of the vehicle to the buyer. The RTO will levy charges on the transfer process. After the background check and documentation process is done by the lenders, the RC gets transferred to the new owner.
Transfer the motor insurance policy
The next step is to transfer your motor insurance policy to the new buyer after the transfer of two-wheeler registration and the outstanding loan amount. You are required to submit all the related documents (updated loan documents, registration certificate copy, etc.) to the insurance provider. After getting the insurer's approval, the policy gets transferred in the name of the new buyer.
Submitting the required documents
The new borrower will have to submit the following documents such as-
A form requesting the loan transfer
- Identity Proof
- Proof of Address
- Income Proof
The bank may request more documents as per their requirement.
Check the charges associated with the transfer
The financial institutions on loan transfer levy some processing fees and transfer fees. It is decided based on the remaining loan tenure and principal. So, you need to check with your lender to find out the charges related to the transfer process.
