When it comes to personal loan balance transfer, it is surely the best medium to enjoy lower interest rates. And, when personal loan interest rates are reduced, your Equated Monthly Installments (EMIs) also become pocket-friendly, thus less loan repayment burden. But to reap the maximum benefits, related to affordable EMIs, one needs to be calculative. Yes, being financially smart allows you to save on your EMIs while transferring your loan from one lender to another. Opt for the personal loan balance transfer, if you see a big difference in the interest rates as then only it would be worth. A marginal difference won’t give you affordable EMIs.

Know Also – What is Personal Loan Balance Transfer?

How to Save on EMIs with Personal Loan Balance Transfer?

Switch to a New Lender Offering Lower Interest Rates: Your first step towards pocket-friendly EMIs is to find an ideal lender, offering lower personal loan interest rates. Yes, the lower interest rates you have, the better it is for your pocket. Competitive personal loan interest rates lead to reduced EMIs. Start comparing lenders and find the perfect one, providing lower interest rates. 

Quick Tip: Be a calculative and smart borrower here as marginal difference in interest rates won’t give you the maximum benefits. Yes, make sure that your new lender is offering the loan at a much lower rate as compared to your ongoing loan with existing lender. The more the gap, the higher amount you can save on your EMIs. Also, there is a one-time processing fee that an applicant needs to give away to a new lender while choosing balance transfer.  

Let’s understand the same with an example below.

Suppose,  Ankit Verma, a 30-year-old, Software Engineer by profession has availed a personal loan of Rs.8,00,000 at an interest rate of 21.50% per annum for a tenure of 5 years. After 2 years of loan repayments with the existing lender, he recently got a personal loan balance transfer offer from another lender. The new lender is providing the loan at an attractive interest rate of 14.50% per annum. He is interested to opt for a balance transfer as doing so will reduce his EMIs and loan repayment burden as a whole. So, let’s just see the calculations below

Below is the table showing EMI, Total Interest, Total Amount and monthly saving on personal loan transfer:

LendersInterest RateLoan AmountTenureMonthly EMI(in Rs)Total Interest Amount(in Rs)Total Amount (Principal+Interest)(in Rs)Yearly EMIs(in Rs) Yearly EMIs Savings(in Rs)
Existing 21.50%8,00,000521,868

After repaying the loan for 2 Years, Outstanding Loan Balance=Rs.5,76,509                                      

The above table clearly shows a savings of Rs.24,288, if Ankit opts for a personal loan balance transfer at lower interest rates. 

Hope, you will also become a smart and calculative borrower like him in order to save big on your personal loan EMIs.

Benefits of Choosing Personal Loan Transfer

  • One of its major benefits 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 the 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 the 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


  • Duly signed application form for personal loan balance transfer along with passport size photograph
  • Identity Proof (PAN card/driving license/passport/voter ID/Aadhaar Card etc)
  • Age Proof (PAN card/driving license/passport/voter ID/Aadhaar Card etc)
  • PAN Card copy (Mandatory)
  • Address Proof (Aadhaar Card/Passport/ Landline Bill/ Latest Electricity bill/Rent agreement etc)
  • Last 6-month bank statement
  • Salary slip for the last 3 months
  • Statement of personal loan from a current lender (a loan that needs to be transferred)


  • Duly signed application form to do loan balance transfer along with passport size photograph
  • Identity Proof (PAN card/driving license/passport/voter ID/Aadhaar Card etc)
  • Age Proof (PAN card/driving license/passport/voter ID/Aadhaar Card etc)
  • Address Proof (Aadhaar Card/Passport/ Landline Bill/ Latest Electricity bill/Rent agreement etc)
  • TAN Card
  • Last 3 years Balance sheet along with profit and loss statement pertaining to business
  • Last 6-month bank statement of individual and business entity
  • Statement of personal loan from a current lender (details of the loan that need to be transferred)

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.

Happy Personal Loan Balance Transfer Journey!