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4 Myths About Loan Balance Transfer

By Finserv MARKETS - Aug 5,2019
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4 Myths About Loan Balance Transfer

The raging interest rates have made home loans an extravagant commitment. This is because the repayment of home loans creates a hole in the pockets. An ideal way to lessen the burden of a loan repayment is to opt for a personal or home loan balance transfer. The shift of an outstanding proportion of the personal loan/home loan to another financial institution is known as a home loan balance transfer.

Balance transfer loan is the most convenient and hassle-free process as most of the banks or financial institution have online. Despite its numerous benefits, people are still skeptical about balance transfer. Moreover, there are a plethora of other myths about a home or personal loan balance transfer. Take a look below to understand these myths:

  1. The transfer amount is equal to the repayment amount

  2. The transfer is done free of cost

  3. The transfer is possible multiple times

  4. The transfer is allowed at a low credit score

Top four myths about balance transfer loan:

Myth 1: One can transfer the remaining amount at the same rate at the time of repayment

Every eligible customer can transfer the outstanding amount from one bank to another. However, when an individual moves the amount, he cannot apply for a new loan. Transferring the remaining amount ensures repayment of low EMIs. One must utilize the home loan balance transfer EMI calculator to reduce his EMI liabilities. The home loan calculator is an online facility provided to the customers to help them save more money in the long run.

Myth 2: One can transfer the remaining debt amount in free

The most common myth about transferring the remaining amount is that it can be done for free. However, this is not the case since transferring the amount incurs specific expenses and charges. For instance Bajaj Finserv home loan transfer charges a promotional rate up to 8.80% for salaried individuals. The regular rate for salaried individuals ranges from 8.95% to 9.25%. When you opt for a home loan balance transfer, read the terms and conditions carefully to understand the charges levied on it.

Myth 3: One can transfer the remaining debt amount more than once

A majority of people opt for balance transfer loan in the expectation to obtain better interest rates. However, an individual must transfer the remaining amount only once. Transferring the outstanding amount multiple times is not a wise solution. In case you move the amount more than once, the cost of transferring the loan might not suffice your needs and expectations.

A personal loan balance transfer from Finserv MARKETS provides its customers with online transfers, flexibility, and transparency

Myth 4: One can apply for a balance transfer with a low credit score

The past credit score for home loan plays a significant role in applying for a balance transfer. The credit score directly impacts the rate of interest. For instance, higher the credit score, the lower is the interest rate, and vice versa. An excellent credit score means the provision of various deals and offers from financial institution. Moreover, a majority of financial institutions consider your credit score during the negotiation process.

To sum up, the myths procrastinate the transfer decision. A personal loan balance transfer with Finserv MARKETS is easy with smooth online transfers, flexibility, and complete transparency. Moreover, its maximum benefits make it a go-to option for every customer.

Finserv MARKETS, from the house of Bajaj Finserv, is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment and exclusive EMI store, all under one roof- anytime, anywhere!

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522