How to Foreclose Your Car Loan with CARS24 NBFC: A Step-by-Step Guide

If you're considering foreclosing your car loan with CARS24 NBFC, we've made the process simple and entirely digital. Here's a complete guide to help you through the foreclosure process, including the associated charges.

What is loan foreclosure?

Loan foreclosure means paying off your entire outstanding loan amount before the end of the loan tenure. This can save you from paying future interest, but it's essential to understand the process and any charges involved.

How can I foreclose my loan with CARS24 NBFC?

Foreclosing your loan with Cars24 NBFC is straightforward and can be done entirely online. Here's how:

1. Request foreclosure

To initiate the foreclosure, send an email to care.loans@cars24.com. Our team will reach out to you with the payment link within 24 hours.

2. Receive foreclosure letter

• To get the foreclosure letter, you need to pay INR 590/- (INR 500 + 18% GST) via the link provided by the CARS24 team.
• The payment link will be valid for 3 days, so ensure you complete the payment within this period.
• After the payment of INR 590/-, you will receive the account details needed to complete your foreclosure payment.

• Once the payment is confirmed, you will receive a foreclosure letter via email. The foreclosure letter is valid for 5 days, so please make sure to make the payment within 5 days of receiving the letter.

   

3. Close the loan

After making the payment to the account number mentioned in the foreclosure letter, share a screenshot at care.loans@cars24.com to receive the No Objection Certificate (NOC) for hypothecation removal. Our team will dispatch the NOC to your registered address.

Charges and lock-in period

Understanding the charges involved in foreclosure is crucial. Here's a breakdown:

• Within 6 Months: There's a lock-in period for the first 6 months, during which foreclosure is not permitted.

• Above 6 Months: If you choose to foreclose your loan after 6 months from the 1st EMI, a fee of 5% of the principal outstanding amount will be charged.

   

Conclusion

Foreclosing your loan with CARS24 NBFC is designed to be a hassle-free experience. With a few clicks, you can settle your loan and enjoy the peace of mind that comes with being debt-free. If you have any questions or need assistance, our dedicated support team is always here to help.