Personal loan balance transfer facility can not only reduce the personal loan interest burden, but the borrower can also avail better loan facilities in a bargain
Personal Loan balance transfer: Have you also taken a personal loan? Do you find the interest on it expensive? If yes, then you can also switch your personal loan balance. That is, you can transfer the remaining loan amount to another bank. According to the HDFC Bank website, if any bank or other financial institution is offering to switch the loan (Personal Loan Refinance) at a rate lower than the applicable interest rate on your account, then you can take advantage of it.
Loan transfer process is easy
The loan transfer process does not require any additional process by the borrower. Just a few minor charges for personal loan balance transfer like foreclosure charges, processing charges and stamp duty on the loan agreement (if applicable) etc. have to be paid. In this, the bank in which you will transfer the loan balance, from now onwards you have to pay EMI to the same bank.
Benefits of personal loan balance transfer
The first advantage of personal loan balance transfer facility is that the interest rate is reduced, which reduces the burden of your EMI. Usually the new lender offers a lower interest rate on loan transfers.
When a personal loan is transferred from one bank to another, the tenure of the existing personal loan can be fixed. You can increase or decrease the loan repayment tenure depending on the need. The EMI and interest burden increases and decreases accordingly.
This benefit depends on your past payment record, your CIBIL score and the ever-changing income dynamics. Some lenders may also offer you more facilities. Muscle, zero processing fee, low interest rate, last EMI waiver etc.
Personal loan balance transfer facility can not only reduce the interest burden of personal loan, but the borrower can also avail better loan facilities in bargaining.
Most banks allow top-up facility with personal loan transfer. Many banks and financial institutions offer new personal loans and top up facilities at competitive and low interest rates.
