What is Personal Loan Balance Transfer?
The dire need to take a personal loan comes when you are financially broken and need a support to survive. Meanwhile, borrowers take a loan from any financial institution at a very high rate. However, they try to find the ways through which they can lower their interest rates or EMIs. Is it really possible?
Yes, it is possible with the help of personal loan transfer, a process which transfer the loan balance from one bank to another. Its major aim is to lower the burden of the borrowers. If you are approaching “Bank X” for a personal loan transfer, Bank X will take the existing loan from “Bank Y” and you need to pay your future EMI’s to Bank X respectively.
Benefits of Choosing Personal Loan Transfer
- One of its major benefit is that the borrower gets better rate of interest and it is also beneficial in reducing EMIs.
- One can extend the extending tenure which ultimately decreases the monthly burden of EMIs.
- Many banks also give a facility of top-up loan in case when a person wants to transfer the existing loan from one bank to another. Top- up loans helps you when you need more money for your support.
- Personal loan transfer provides you better features. For example, some lenders provide you features like zero processing fees, a lower rate of interest, waiver of the last EMI and many more. On the other hand, in case of personal loan transfer the borrower can receive brilliant features through negotiating.
- Also you can save a lot of money through personal loan transfer.
Who are Eligible for Personal Loan Balance Transfer
The eligibility criteria is not difficult. You just need to follow the rules which has been mentioned by them. The following rules which you need to follow are as follows:
- A borrower should have a loan amount of at least 50,000.
- His EMI payment track record should be clean of at least previous 12 months.
- His CIBIL score must be above than 700. 750+ is considered a good score.
Therefore, the criteria is not that difficult and everyone can follow these rules without any difficulties.
Important Documents Required for Personal Loan Balance Transfer
- You need to fill an application properly. At least two passport size photos are required and your signature is essential.
- Without identity or age proof your application will rightly get rejected. You can take Pan Card, Passport, Driving License and Aadhaar Card for Identity proof. For the verification of your address you can use Electricity Bill, Telephone Bill and Aadhaar Card.
- Salary slip of previous months is also required.
How Does Personal Loan Transfer Works
- The process of personal loan transfer is quite complex but easier to understand at the same time.
- Firstly, you must check the current interest rate for the personal loan which you are likely to get.
- After that you need to calculate the approximate cost of personal loan on the basis of fees and charges.
- Calculate the net benefits. Decide if you want to transfer your existing loan to another bank or not. Can you believe on another bank or not? To make things easier shortlist new banks which can help you in lowering your burden.
- You should check the interest rate offers and other greater features before choosing another bank along with its process.
- After verifying all the important information of your aimed bank submit your documents to the bank.
- Then you need to obtain a sanction letter execute the new loan agreement with the new bank.
- Take issuance from the new bank
- After completing all the procedure your existing bank will close your loan account.
Therefore, personal loan transfer helps the needy people by reducing the interest rates. EMIs become easier to pay. Moreover, it provides greater features which are not provided by other lenders. One can also extend his\her tenure. Hence, one should not worry about regarding any financial situation if he is taking the help of personal loan transfer.