Do you want to sell your car but still pay off its loan? At times, it can be challenging to transfer a car loan. However, it isn’t impossible — the process is quite easy if done carefully.
Read on to get all the relevant information on how to transfer a car loan in the UAE!
Primarily, there are 3 ways to transfer a car loan to another person -
The primary step is to clear your existing loan. However, it’s worth mentioning that your bank must inform the RTA regarding the loan clearance.
It is highly advised to initiate the process at the earliest. This is because the entire loan clearance can take up to a few business days.
Once done, remember to ask your bank to issue an official letter of your record.
In case you are unable to clear the loan, here are the two methods to sell your car finance:
Cash buyers are those who pay the loan amount on your behalf and get the car ownership after paying the outstanding amount. The process is as follows:
You need the following set of documents to transfer car loan to another person in the UAE -
Note: All the documents listed above must be valid.
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Have questions about how to transfer car loan to another person? Jump onto the next section!
You must have the following documents for transferring a financed car to another person -
If you don’t repay your car loan, the bank may file a civil case against you. Additionally, you can be banned from travelling outside the UAE.
Yes, you can prepay your car loan. However, additional charges may apply.
Yes, you must submit the car valuation certificate to the concerned bank.