I thought I'd post what I found out, in case anyone ever has the same question.
In my case, I took over a car loan from someone at HSBC. I'm also a HSBC customer, so this was relatively easy. I had to get a salary assignment letter, to show how much of my salary I'm sending to my HSBC account each month. I also had to give them a copy of my RP/ID card and passport photo page. Standard stuff, really. I'm assuming that since I'm already a customer, they would have my salary certificate on file.
What HSBC does is considers this a loan settlement on the original party's part. So they take the principal amount left on the loan. Then they recalculate the loan interest for the period you want the loan, add on the processing fees, etc. Instead of calculating a new car percentage, it's a used car percentage, so one percent higher.
I checked out taking a personal loan to cover the amount, vs the car loan. It worked out best to take over the car loan, even with paying the processing fees and such, because the interest is being recalcuated on the principal. If I would have paid 'cash' by taking a personal loan, I would have had to take the loan for the total amount left on the car loan. In my case, the principal + interest was roughly 4,000 riyal.
HSBC's processing fee is either 2% of the car value, or 2,000 riyal.
Now, if you're a premier customer with HSBC, then you don't have to pay the processing fee, and you get a better interest rate. Unfortunately, I'm not, nor can I become one, since I don't send enough money each month and I don't have enough in my accounts.
Just FYI. I don't know if this will ever help someone else out or not...
I thought I'd post what I found out, in case anyone ever has the same question.
In my case, I took over a car loan from someone at HSBC. I'm also a HSBC customer, so this was relatively easy. I had to get a salary assignment letter, to show how much of my salary I'm sending to my HSBC account each month. I also had to give them a copy of my RP/ID card and passport photo page. Standard stuff, really. I'm assuming that since I'm already a customer, they would have my salary certificate on file.
What HSBC does is considers this a loan settlement on the original party's part. So they take the principal amount left on the loan. Then they recalculate the loan interest for the period you want the loan, add on the processing fees, etc. Instead of calculating a new car percentage, it's a used car percentage, so one percent higher.
I checked out taking a personal loan to cover the amount, vs the car loan. It worked out best to take over the car loan, even with paying the processing fees and such, because the interest is being recalcuated on the principal. If I would have paid 'cash' by taking a personal loan, I would have had to take the loan for the total amount left on the car loan. In my case, the principal + interest was roughly 4,000 riyal.
HSBC's processing fee is either 2% of the car value, or 2,000 riyal.
Now, if you're a premier customer with HSBC, then you don't have to pay the processing fee, and you get a better interest rate. Unfortunately, I'm not, nor can I become one, since I don't send enough money each month and I don't have enough in my accounts.
Just FYI. I don't know if this will ever help someone else out or not...