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Personal Loan Balance Transfer: Benefits and Details

By Finserv MARKETS - Feb 5,2019
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Benefits Of Personal Loan Balance Transfer

It’s no secret that Personal Loans carry relatively higher interest rates compared to secured loans. As a result, making Personal Loan payments can sometimes become a financial burden. Fortunately, thanks to facilities like Personal Loan Balance Transfer, you have the option to ease your burden if the loan payments are straining your finances. A Personal Loan Balance Transfer facility lets you avail a better loan offer at a lower interest rate by transferring your loan balance to another bank or another loan from the same bank. Here are some of the most important benefits of a Personal Loan Balance Transfer: –

Benefits Of A Personal Loan Balance Transfer:

  • Low Interest Rates
  • Lower Monthly Payments
  • Top-up Loans
  • Improve Credit Score

Low Personal Loan Interest Rate

A Personal Loan Balance Transfer offers you the benefit of lower interest rates. Most of the banks will offer to take over your Personal Loan at a lower interest rate than your existing one. Generally, banks offer interest rates that’s 2% less than your ongoing interest rate. For e.g., If your existing Personal Loan interest rate is 16%, you can get it reduced up to 14%.

Lower Monthly Payments

A reduction in interest rate will automatically reduce the monthly payments towards your Personal Loan. Additionally, you can further reduce your monthly payments by re-negotiating the loan repayment tenure and extending it. A longer loan tenure will further reduce your EMIs thereby reducing your financial strain.

Top Up Loans

A Balance Transfer gives you the flexibility to borrow more money if required. If you are in need for more funds, request the bank for a Top Up Loan at a better rate while applying for a Personal Loan Balance Transfer. This helps reduce your average cost of loans that you have availed.

Improved Credit Score

If you have diligently paid your loan EMIs in the past, but are unsure of making complete payments in the coming months due to unexpected financial constraints, opting for a balance transfer would be a wise thing to do. This move will not only help you maintain your credit score but also give you an opportunity to boost your credit score.

Before opting for a balance transfer, it’s important to evaluate the offer carefully and explore what other banks have to offer. Make sure to read and understand the balance transfer terms and conditions carefully before you sign the loan agreement, especially the hidden costs should be pointed out beforehand.

Conclusion

A personal loan balance transfer is the working concept in which the outstanding amount of existing loan is transferred from one financial institution to another. The primary motive behind this transfer is to avail better terms including a lower interest rate. The basic objective of a personal loan balance transfer is to decrease the burden of your debts altogether. It is never too late for shifting to a better bank with a lower interest rate for your Personal Loan. That’s not all, you can also avail additional funds for your personal or business requirements.

So why wait? With Finserv MARKETS, you can avail a Bajaj Finserv Personal Loan online in a quick, easy and hassle-free way. What’s more? The entire process is online and can be processed right from the comfort of your home! Also, you get the freedom of choosing your loan repayment tenure that ranges between 12 – 60 months. What more could one ask for? Go ahead and apply for a personal loan from Finserv MARKETS, today!

Read about how you can avail a Personal Loan with low CIBIL score.

You can also read about how you can get an unsecured personal loan while unemployed.

“Finserv MARKETS, from the house of Bajaj Finserv is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment and an 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