While personal loans come with a ton of benefits, the interest rates are generally on the higher side.
Additionally, if you have availed multiple personal loans at the same time then paying all of the EMIs at the same time might be burning a hole in your pocket.
In such situations, a personal loan balance transfer can be a great option.
A personal loan balance transfer refers to transferring the outstanding balance in your existing loan from one lender to another. This is due to better conditions offered by the second lender.
It could be a lesser rate of interest, longer repayment tenure, better prepayment conditions, better service from the lender, etc.
Balance transfers can be done on all kinds of loans like personal loans, car loans, home loans, etc.
As the term suggests, loan transfer indicates transferring your existing loan from your current lender to a new one. If you are searching for some features and benefits of a balance transfer personal loan, they are listed below -
Lower interest rate as compared to the previous loan
Fresh loan offer to pay off all existing debts
Better EMI options for easy repayment
Loans up to 100% of existing loan amounts
No collateral required
Minimal documentation
To save some funds while transferring your loan, you need to note the following factors -
The interest rate must be lower than what you were paying previously
Foreclosure charges of your previous loans should not be very high
Repayment tenure must fit your requirements
The eligibility criteria for a loan transfer will vary depending on your lender. In case you choose instant personal loans from moneyview to carry out a loan transfer, here are the criteria you need to meet -
Your age must be between 21 and 57
If salaried, your minimum in-hand income must be Rs.13,500
If self employed, your minimum in-hand income must be Rs.15,000
Your minimum CIBIL or Experian score should be 650
You could apply for a loan transfer with any financial institution, a bank where you have your savings account or an NBFC. Here are the steps you need to follow -
STEP-1: Thoroughly research which bank, NBFC, or instant loan app you will take the loan from.
STEP-2: Approach the lender and apply through the online or offline process.
STEP-3: Submit the required documents so that they can be verified.
STEP-4: Once the documents are verified, sign the loan agreement.
STEP-5: After the loan agreement has been submitted, your funds will be disbursed to your account shortly.
If you are wondering why should you opt for a balance transfer personal loan, here are some of the advantages of personal loan balance transfer -
The biggest advantage of a personal loan balance transfer is that you could get a loan with a sufficiently lower rate of interest which could translate into bigger savings.
Many lenders also allow the applicant to apply for a top-up loan along with a loan transfer. This is helpful as you wouldn’t have to go through the entire process of applying for a loan again.
The terms and conditions associated with a loan vary between lenders. A personal loan balance transfer might be your chance to opt for a lender whose service is better or has better terms and conditions.
Yes, you can transfer the balance of your personal loan to another lender. It is referred to as a loan transfer or personal loan balance transfer.
If you are facing issues with your current lender like high interest rates, or bad service, transferring your personal loan to another lender is a good idea.
When you go through the process of a loan transfer, your new lender might charge a small fee for the same, which is referred to as the balance transfer fee.
A personal loan transfer may or may not affect your credit score. On one hand, if your credit utilization reduces, your score might improve. But, due to the new hard credit inquiry, it may be affected a little. You can know more about the factors that affect your credit score here.
The criteria for loan transfer may vary depending on your lender. In general, you must have paid a certain number of EMIs to be eligible for a personal loan balance transfer.
A personal loan balance transfer will take fairly the same amount of time as it takes to pass a new personal loan. It would not take more than 5-6 working days.
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