Vehile loan transfer
sridhar pasumarthy
(Querist) 15 March 2016
This query is : Resolved
Respected Experts,
A obtained a vehicle loan from a financial institution and still some more E.M.I s are due. While so, A wants to sell away his vehicle to B. So, A wants to get his loan transferred to B, for which financial institution is also willing.
I am representing financial institution.
My questions are :-
1. Whether law permits to transfer the existing loan from A to B?
2. If so, What are the legal formalities to be observed and documents to be obtained either from A or B by the financial institution to avoid legal complications in future?"
pls reply. its somewhat urgent
Very kind of you in advance
Adv. Yogen Kakade
(Expert) 15 March 2016
As you are representing the financial institution.. you should know the answers.. Whether the earlier loan is from the same bank?
Adv. Yogen Kakade
(Expert) 15 March 2016
And the loan can be transferred if the title of the property hypothicated is also transferred.
sridhar pasumarthy
(Querist) 15 March 2016
@ sri Adv. Yogen
sir, earlier loan is from the same bank.
A is also willing to transfer the vehicle to B.
My request is to pls clarify about the necessary documents required to be obtained from A and B
Rajendra K Goyal
(Expert) 15 March 2016
1. Whether law permits to transfer the existing loan from A to B?
Ans: Loan need not be transferred. New loan on used vehicle (after valuation from expert) need to be sanctioned in the name of B as per eligibility and with this proceeds old loan in the name of A need to be closed. Suitable undertakings need be taken from both.
2. If so, What are the legal formalities to be observed and documents to be obtained either from A or B by the financial institution to avoid legal complications in future?"
Ans: All documents applicable for vehicle loan need be taken from B, as it would be fresh loan in the name of B. Documents (sale agreement, money receipt, undertaking etc.) need to be taken from A.
