If you are going through the stress of paying high Equated Monthly Installments (EMIs) each month, there is a solution for you. A personal loan balance transfer is an ideal solution to settle your debts at a lower interest rate. A loan is transferred to save interest and reduce EMIs by switching to a personal loan with a lower interest rate and also avail an additional top-up loan from the new bank.
However, charges to transfer a personal loan can be different depending on your current bank and the new bank. To calculate your loan amount eligibility you can take the help of a Personal Loan Balance Transfer Calculator, this will also help you to identify offers with personal loan rates provided by other banks compared to your existing personal loan rates.
A balance transfer is a process where you transfer the existing personal loan from one lender to another. If you have an outstanding loan and it has a high interest rate on personal loan, you can transfer it and enjoy a lower interest rate. This means you can reduce the burden of EMI payment.
Bajaj Finserv personal loan offers interest rates starting from 12.50% and has flexible repayment tenure. It will help save on the interest amount you have to pay each month. Getting a Bank Balance Transfer, will generally reduce the burden of your existing loan.
The main objective of a personal loan balance transfer is to reduce the overall burden of debt. This concept was first introduced with credit card balance transfers. But, the process of a loan balance transfer is now extended for almost all types of credit facilities such as home loan, car loan, education loan and personal loan, etc. Hence, most financial institutions offer personal loan balance transfer to their customers.
A personal loan balance transfer is a process where you can transfer your total outstanding personal loan amount from one lender to another for any reason. Whether it’s due to lower interest rates or better offers on loan you can make the decisions accordingly. Moreover, your balance transfer loan process does not require you to pledge any security or collateral. A personal loan transfer is mainly dependent on your capacity to repay the loan, creditworthiness or credit health.
The following are the key eligibility criteria for a personal loan balance transfer.
For a balance transfer process, the outstanding loan amount has to be at least Rs. 50,000.
You need to provide a record of your personal loan EMI payment. Ensure all of them are cleared or at least the previous twelve installment payouts of the existing loan will be checked.
If you have numerous loans/credit cards you need to ensure all are good standing as per the requirements.
The following are the required documents for balance transfer loan for Salaried as well as Self-Employed individuals.
A duly signed personal loan balance transfer application form
Identity Proof (PAN card/driving license/passport/voter ID/Aadhaar Card etc)
The applicant's age Proof (PAN card/driving license/passport/voter ID/Aadhaar Card etc)
Residential Address Proof (Aadhaar Card/Passport/ Landline Bill/ Latest Electricity bill/Home rent agreement etc)
The bank account statements for the last 6 months.
The salary slip for the last 3 month
A duly signed application form for loan balance transfer along with passport size photograph
Proof of Identity(PAN card/driving license/passport/voter ID/Aadhaar Card etc)
Age Proof (PAN card/driving license/passport/voter ID/Aadhaar Card etc)
The applicant's address Proof (Aadhaar Card/Passport/ Landline Bill/ Latest Electricity bill/Rent agreement etc)
The balance sheet of the last 3 years along with the profit and loss statement of the business
The bank statement of the last 6-months of individual and business entity
Based on the documents submitted, your creditworthiness assessment will begin. A personal loan transfer will be carried out only after the assessment of credit risk has been made and you clear the verification process.
There are numerous reasons to get a Balance transfer on your personal loan.
Low-interest rates reduce the borrower's interest burden through reduced EMIs. It is always better to access the need, evaluate the offer and compare the interest rates and other features before making a final decision with the balance transfer facility.
When you transfer a personal loan you can potentially negotiate the tenure of the loan and get the repayment tenure of the loan extended as per your requirements. With an extended loan tenure, you can have the lower monthly burden of EMI but have a higher total interest payout.
Most banks offer a top-up loan facility along with personal loan transfer. In case, if you need more credit, you can consider going for a personal loan balance transfer at a lower rate of interest. In the case of top-up loans, the outstanding loan balance is directly paid to your previous lender and the fresh amount of loan gets credited to your account.
Depending on your credit history you may get an offer from other lenders offering better features on personal loans such as waiver of last EMI, zero processing fees, lower interest rates, etc. The personal loan balance transfer facility can thus not only reduce your personal loan interest burden, but you might also get a loan with better features.
Dissatisfied with your current loan providers services
If you're not happy with your current loan service provider. You can simply opt for a personal loan transfer and choose to go with a lender who can provide better services as compared to the current one.
Discussed below are the benefits of a personal loan balance transfer.
This is one of the biggest benefits of a Bajaj finance personal loan. When you transfer the existing balance, you enjoy low personal loan interest rates and subsequently, a low EMI amount.
With an online personal loan balance transfer, you can negotiate the tenure of the loan and enjoy an extended duration. The tenure can be adjusted as per your needs and you will be able to make the EMI payments accordingly.
If you are not satisfied with the services of the present lender, you can transfer the loan to another lender. You can apply for a personal loan with a new lender and enjoy better customer service.
The process of balance transfer is hassle-free and straightforward. You need to contact the present lender and gain information about the outstanding amount and tenure. Once that is done, you can approach the new lender and understand the terms and conditions. You will have to carry out the necessary formalities for the transfer of loan. For a new lender, it is a new loan application and you will have to go through the entire process including the payment of processing fees.
The process of balance transfer is quick and convenient. The most important thing you need to consider is the personal loan EMI. When you transfer the loan, the EMI amount should reduce and it should be convenient for you to make the repayment.
After the transfer, the EMI will not be a big debt for you and you will be able to make payments in a smooth manner. Transfer your current loan to get a personal loan by Finserv MARKET and get an instant personal loan with repayment tenure of five years.