Personal loans are taken for multiple purposes by individuals who want or need funds to cover their expenses. But this loan came with a high interest rate of return, which causes financial drain of the person, and if there are multiple personal loans then it will cause serious financial problems for the person to pay high interest rate and principal amount of each loan.
What is a balance transfer personal loan?
A balance transfer personal loan is a facility in which the remaining amount of existing loan needed to pay is transferred to another lender. If a person has taken any loan from a lender and paid some amount, but still much of amount remains, and also there is high interest rate on loan then person can use a balance transfer personal loan and transfer remaining amount of the loan to another lender who apply less interest rate of return.Â
Beneficial Features of Balance Transfer Personal Loan
- Low Interest Rate
By using the Balance Transfer Personal Loan facility a person can get a lender who is ready to transfer a loan at a low rate of interest. Lender is willing to give a loan at a low rate of interest for the purpose of attracting more borrowers, and it will eventually reduce the cost to repay the loan amount.
- Top Up Loan Option
Transferring loan to new lender in a balance transfer personal loan may provide an additional loan amount on the existing loan, which helps to meet the extra financial needs of the person without any separate loan.
- Flexible Repayment Duration
A person can choose how much time is to be taken to repay the loan based on your financial capacity. It can be long with a lower amount of EMI but a higher interest amount or can be short with a higher amount of EMI but a lower interest amount.
- No Collateral Needed
Due to the unsecured nature of personal loans, there is no need to risk your personal assets for a balance transfer personal loan to another lender for security.
- Quick and Easy Process
In Balance Transfer Personal Loan many lenders use or give features of online, paperless, fast processes, which save time and also reduce the stress of transferring outstanding loan amounts.
Important reason to choose a balance transfer personal loan
- Better Service or Lender Experience
Through Balance Transfer Personal Loan facility, borrowers can seek new lenders who provide better customer support, no inconvenient charges, reliable and polite behavior, etc., as a fresh second start to the loan.
- Debt Restructuring Opportunity
Balance Transfer Personal Loan will help in again structuring a personal loan amount if any fluctuation appears due to a change in income, expense, or outstanding amount and interest amount payment.
- Better Financial Planning
Due to the lowering of financial stress by low rate of interest, the restructured loan and extra top-up on the loan will affect making better financial planning than the previous one.
- Avoid Loan Default Risk
If payment of the loan becomes unaffordable with the person’s current lender condition, then a balance transfer personal loan will help to transfer the loan to a better lender with available better options.
Which Banks and NBFCs provide balance transfer personal loans?
Note: Rate and duration may vary based on person profile, credit score, income, or lender’s current offer. Always check first with the lender for the latest update.
| Name of Banks | Interest Rate (P.A) |
| HDFC Bank | 10.5% to 21% |
| Axis Bank | 10.5% to 21% |
| SBI (Xpress Credit) | 11.15% to 14.65% |
| Yes Bank | 11% to 23% |
| IDFC Bank | 10.5% to 23% |
| Kotak Mahindra Bank | 11% to 24% |
| ICICI Bank | 10.75% to 19% |
| Name of NBFC | Interest Rate (P.A) |
| Fullerton India | 12% to 25% |
| Indiabulls Finance | 11% to 24% |
| Clix Capital | 15% to 24% |
| MoneyTap (via NBFCs) | 13% to 27% |
| Bajaj Finserv | 11% to 28% |
| Tata Capital | 11% to 24% |
Personal Loan : Aditya Birla Personal Loan Apply Online & Eligibility, Interest Rate
Eligibility Criteria for Balance Transfer Personal Loan
✅Age : 21 years to 65 years
✅Employment Type : Salaried person / Self Employed Person
✅Monthly Income : 20,000 to 30,000 (Minimum)
✅Credit Score : Equal or Above 700 (CIBIL score)
✅Loan Repayment History : 6 to 12 EMIs paid (At least)
✅Work Experience : 6 to 12 months
✅Existing Loan Amount : Minimum 50,000 (Depends onLender)
Document required for Balance Transfer Personal Loan
- Identity Proof : Aadhaar, PAN, Voter ID
- Address Proof : Utility Bill, Passport
- Income Proof : Salary Slip (Last 3 months), Bank Statements (Last 6 months), ITR (Self Employed)
- Existing Loan Documents : Loan Statement from existing lender, Repayment Track Record
- Employment / Business Proof : Employment Certificate, Offer letter (Salaried person) / Business Registration Document (Self Employed person)
How to apply for a balance transfer personal loan
- Check Eligibility: By Eligibility criteria mentioned above and check at their official website.
- Compare Offers: Compare offers available with your current loan and choose on basis of interest rate, duration, top up option, etc.
- Gather Required Document: Collect all documents mentioned above and double-check each document.
- Apply Online or Offline: For online, visit chosen lender’s website, then fill application form with the required details and upload it with the scanned document, then submit it and wait for pre-approval and verification. For offline, visit the nearest branch of the chosen lender and submit the physical application form with documents.
- Loan Evaluation & Approval: The lender will verify your document, credit score history, and loan details. If the loan is approved, then they will pay off your loan to your existing lender.
- Start Repayment with New Lender: Now you will pay EMI in new loan terms and policy to the new lender.
