Basically, my relative has an outstanding car loan amount. He retired recently and can’t afford the high interest rates. So we are planning to close the loan account by paying the entire outstanding amount for which I’ll be paying using a cheque from my account. My question is can a third party issue cheque to clear an outstanding car loan?
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{ 2 comments… read them below or add one }
The decision depends totally on the firm from which you are talking the car loan. You can discuss it with that company itself.
My cousin had faced such prob then he just went to a company it was http://www.auto-financed.com which helped him a lot.
It should not be a problem as long as the loan is of a type that is allowed to be paid off in full before the full term. Some loans only allow a certain percentage to be paid off early and/or may charge a penalty. Check the loan agreement or talk to the lender.