Today, a personal loan is one of the fastest ways of borrowing finance. It needs no collateral and is usually quickly approved. The loan is to repaid in Equated Monthly Installments (EMIs). The EMI includes the principal and interest elements. At times, you might face difficulty in repaying the loan due to a high EMI.
In such a scenario, you can transfer your personal loan to a different lender and enjoy a low-interest rate. When you opt for a loan transfer, you can pay off the existing EMIs with ease and on time. However, you need to be very careful when transferring the loan because there can be hidden costs associated with it.
Steps to transfer a personal loan
Here are a few steps to help you transfer your personal loan.
Primarily, you need to get in touch with different lenders and get an idea about the transfer scheme. A new lender might help reduce the EMIs and give you a longer tenure. However, your total liability will increase due to the additional interest that accumulates over a longer period. You need to compare the total amount that you are currently paying to your existing lender with the amount that you will be paying to your new lender and then make a decision.
Consider the fees
At the time of loan transfer, you need to submit all details about the existing loan. This includes the outstanding amount, interest rate and tenure. The lender might also ask you to provide a repayment history for the past one year before agreeing on the transfer. You need to consider the processing fees and legal charges on the loan. Compare the same with the advantages of a low-interest rate and then decide if the balance transfer is ideal for you or not. Many lenders consider the processing fee as a certain percentage of the loan amount and many have a uniform fee. The present lender can also increase the cost of closing the loan before time. You need to check about the same and then apply for a personal loan.
In order to transfer the loan, you will have to provide documents like identity proof, income proof, address proof, and bank statements. Some lenders might also require you to start a savings account with them to transfer the loan.
Understand the terms and conditions carefully
After the application is processed, the amount will be transferred in your account. However, before you take the loan, it is advisable to understand the terms and conditions. Ensure that the loan transfer does not add up to your expenses. The lender might offer you extra top-ups like a personal accident insurance plan or a free credit card along with the loan. You must opt for these only when you genuinely require them to ensure that you do not avail of an unwanted facility.
If you are looking for an instant personal loan transfer, visit Finserv MARKETS. Bajaj Finserv personal loan comes with competitive interest rates and other attractive features, such as flexible repayment options, extended loan tenure, lower processing charges, etc. Before applying for a personal loan, it is advisable to check the eligibility criteria set by the lender. This will reduce the rejection chances of your loan application.
Lastly, do not forget to read the terms and conditions of the loan agreement carefully before signing it. This will help you avoid any inconvenience in the later stage.
“Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we work towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App”.