What is Balance Transfer Loan?
Is it A Good Idea for Personal Loan?

Are you going through difficulty in repaying loans or going through a temporarily difficult time due to multiple loans? What if you were told that transferring your loan(s) could provide you with a respite from paying high loan instalments? Yes, transferring your personal loan balance may be the solution to your financial problems.

What is a Personal Loan Balance Transfer?

A personal loan balance transfer is exactly like what the name suggests. It enables you to transfer your outstanding loan balance to another loan provider in lieu of lower interest rates, better services, etc. thereby reducing your burden. You can also use this facility to consolidate multiple small loans into a single loan. Loan providers also extend an additional amount over and above the sum of outstanding loans which an applicant may want to transfer depending on the eligibility of the applicant.

But is Balance Transfer a Good Idea for a Personal Loan?

If you are considering transferring your loan, you should read the fine print for other factors like the processing costs, foreclosure fees, etc. that could significantly affect your loan. These are factors you should know to be able to make an informed decision:

1. Lower Rates of Interest and Transparency
   Lower rates of interest offered by lenders translates to lower EMIs and thus, reducing your financial liability. Post opting for a loan, it is always a good idea to stay constantly updated about the rates of interest and consider a balance transfer if the difference in the rates of interest are significantly higher. Also, opting for a loan provider that maintains utmost transparency with regards to expenses like processing fees, transition fees etc. will ensure that you aren't burdened with any expenses you hadn't planned for while applying for the loan.
2. Top-up Facility
   Opt for a lender that offers top-up loans at competitive rates of interest to ensure that you do not have to face financial constraints to cater to requirements. 
3. Repayment Tenure
   Lenders offer the option of extending the repayment tenure, allowing you to pay smaller installments without compromising on your standard of living. The rates of interest are competitive and ensure that repaying the interest does not burn a hole in your pocket. 

What is the Eligibility Criteria to opt for an Instant Personal Loan Transfer?

The criteria for a transfer is not quite different from that of a personal loan. Some of the main factors taken into consideration while evaluating your candidature include:

• The applicant should be between 21 to 61 years of age.
• The applicant should be a salaried employee of a public or private company having a basic minimum turnover as per the lender’s policies.
• For applicants from Mumbai or Delhi, the monthly salary should be at least Rs 25,000. For applicants from any other place in India, the monthly salary should be at least Rs 20,000
• You should possess a minimum of 6 months of work experience in the company you are presently working for, and an overall work experience of at least 1 year.
• A CIBIL score of 750 and above can help in obtaining a transfer without hassle. If your CIBIL score is lower, you don’t need to worry. There are various ways in which you can improve your CIBIL score.

You can use our free personal loan balance transfer calculator and enter the details requested such as your age, location, monthly obligations, interest rate tenure of the loan, monthly income etc. to estimate the approximate loan amount you are eligible for as well as much money you could save in the form of EMIs by opting for a personal loan balance transfer. If you do decide to opt for a transfer, make sure to repay your debts on time and take one step towards releasing yourself from the mountain of debt.

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