If you have taken a car loan and are looking to get out of the car loan as soon as possible, there are a few options that can help. But, all the options will involve repaying the loan as defaulting on loan payments can negatively impact your credit score. A low credit score will then lead to loan rejections in the future.
If you are looking to get rid of the financial burden of a car loan, then you can choose to pre-pay your car loan amount and close it. Pre-payment is done when you have enough money to repay the outstanding loan amount in one shot and want to do so before the chosen loan tenure. This can help you close your car loan and rid you of the car loan burden.
2. Part pre-payment:
If you have enough money to make one large payment but not enough to pay the entire outstanding loan amount, then you can opt to make a part pre-payment on the loan. This can help with reducing your EMI or your loan tenure. A part pre-payment is generally a minimum of three EMI payments. This can help reduce your financial burden.
3. Low interest loan:
If you want to close your car loan immediately, you can take a low interest loan such as a gold loan and use that loan amount to close your car loan. You can then repay the low interest loan with ease over the chosen tenure. You could also opt for a personal loan if the interest rate is lower than your current car loan.
4. Debt consolidation:
If you have more than one loan that is currently running, you can always apply for a debt consolation. This will consolidate all your outstanding loan amounts and help you repay it all in one shot. This is very convenient if you have many loans and are looking to settle them all in one go. You can repay your car loan and the other loans immediately with this option.
5. Sell the car:
If you are in a dire state and need the money to repay the loan, you can sell the car you have bought to settle the loan amount with the lender. This is the last option you can resort to in order to settle your car loan with the lender you have borrowed from.
To apply for debt consolidation, click here.