Don't worry if you don't have money to repay the loan, financed car will be sold easily, know the process

 Don't worry if you don't have money to repay the loan, financed car will be sold easily, know the process

Nowadays people take loans to get their dream car and gradually pay the installment in their own name but with this the trend of changing cars every 3-5 years has increased in India. In such a case, if it is your turn to sell the car at any time and there is a loan outstanding on it, in such a case, you have to clear the outstanding loan on it before selling the car. If you are also thinking of selling the car on which the loan is due then find out how to start the process of selling the car ...

Find out how much loan is outstanding

Check with the banker / finance agency to find out the balance on your car loan. After this you will have to fill and submit the loan pre-closure form. After that you will have to pay the rest.

Apply for NOC after payment is due

Apply for No Objection Certificate (NOC) in the bank after paying all the money. The bank will issue two copies of NOC and Form-35 within 1-2 days after checking your details. Only then will you be able to sell the car.

What to do if you want to be sold by a company?

Even if you sell a car through a company like Cars24 or through a car selling and purchasing platform like CarTrade, you still have to fill out a pre-closure form and submit it to the bank. After that you will have to pay the rest.

The company repays the loan

These companies repay the loan if you do not have the money to repay the loan. These companies transfer the balance to your loan account. After this you have to apply for NOC. When you provide NOC and car documents to the company, the company transfers the remaining amount of the deal to your account.

 

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Apply to RTO for removal of hypothesis

Apply for Hypothesis (HP) from RC by submitting PAN Card, Proof of Address, Passport Size Photograph, Form 28, 29, 30, 35, Affidavit of Sale, Certificate of Clearance, RC, PUC, Insurance, Insurance Transfer along with NOC to RTO. If the HP is not removed, the name of the lending bank will appear on the RC and there may be difficulty in selling the car.