Personal Loan Balance Transfer

Overview of Personal Loan Balance Transfer

Personal Loan Balance Transfer is a simple concept of transferring your outstanding personal loan amount from one bank to other banks for lower interest rate, better features. The concept of balance transfer came out from credit card balance transfer. Nowadays you can avail the balance transfer facility in a home loan, auto loan, educational loan, and personal loan. Now days almost every financial institution offers the option of a personal loan balance transfer. If you are an individual who is paying a high-interest rate you can opt for a personal loan balance transfer. When you are availing the personal loan balance transfer option you also can avail a top-up loan.

Types of Personal Loan Balance Transfer

• You can pay off a personal loan by transferring it to another one.
• You can pay off your one credit card by transferring it to another card.
• You can take a loan and can pay off your dues on existing debts.
• You can transfer your loan to another bank and also can take another top-up loan from that same bank which is Personal Loan Balance Transfer and Top Up. In this case you need to pay the pre-closing charge to your last bank.

Personal Loan Balance Transfer Benefits

• Lowest Interest Rate

  The the main benefit of balance transfer personal loan is you can reduce your ongoing personal loan’s interest rate. As an example if your current interest rate is 15% on your personal loan, it can be reduced up to 10.99%. Though it differs from Bank to Bank or NBFC to NBFC. Personal Loan Balance Transfer interest rate starts from 10.99%.
  
  If you have joined a CAT A company from a CAT B company and you have taken the loan while you were working on CAT B company you can change your lender for better offer as now you are working in CAT A company by availing a personal loan balance transfer you will get reduced personal loan interest rate or if you are someone who had lower credit score while taking that personal loan and got higher interest rate and now you have a good credit score so now you also can avail personal loan balance transfer to another financial institution for lower interest rate based on your Credit Score. So your EMI amount also can be low. You can get a personal loan balance transfer lowest interest rate by doing this.

• Long Tenure or shorter on Personal Loans

  If you are availing the personal loan balance transfer process you can negotiate the personal loan repayment tenure as if you want to increase it or decrease it with your new lender. But if you extend your loan repayment tenure by availing personal loan balance transfer you have to pay lower EMI but a higher interest pays out. And if you go for shorter tenure your EMI amount will be high but your interest amount will be lower.

• Better Features

  As per your last payment records with changing incomes, you may get an offer from your new lender with Zero personal loan balance transfer processing fees, lower interest rate etc. personal loan balance transfer not only reduce the interest rate also offers you the best features with your personal loan balance transfer.

• Top Up Loan

  We all have heard about the top-up loan. You can balance transfer your personal loan and also can lend an extra amount at the same time with a better interest rate and better tenure. You can avail Personal Loan Balance Transfer in India at any time. You can avail a personal loan balance transfer top-up loan with minimal documents and without any hassle.

Personal Loan Balance Transfer Interest Rate List

*rates can be changed as per the bank’s policy.

Eligibility Criteria for personal loan balance transfer

• Outstanding loan amount must be equal or more than 50,000.
• Past 12 months EMI Track record has to be clean of an existing loan.
• Applicant must have an ongoing personal loan from another bank.
• CIBIL should be 700 or above.

Documents require for personal loan balance transfer

• Salaried

• Correctly signed application form of personal loan balance transfer with passport photographs.
• Identity Proof and age proof (PAN Card/ Driving License/ Passport/ Voter ID/ Aadhaar Card etc)
• PAN Card (Must)
• Address proof (Aadhaar Card/ Passport/ Landline Bill/ latest electricity bill/Rent Agreement)
• Last Six Months Bank statement
• Salary slips of last 3 months.
• Statement of Personal Loan from the current loan (that a loan needs to be transferred)

• Self-Employed

• Correctly signed application form of personal loan balance transfer with passport photographs.
• Identity Proof and age proof (PAN Card/ Driving License/ Passport/ Voter ID/ Aadhaar Card etc)
• Address proof (Aadhaar Card/ Passport/ Landline Bill/ latest electricity bill/Rent Agreement)
• TAN Card
• Last three years of balance sheet along with profit and loss in business.
• Last six months of bank statement of individual and business entity.
• Statement of Personal Loan from the current loan (that a loan needs to be transferred)

Key Features of Personal Loan Balance Transfer

• Balance transfer personal loans disbursed in two working days.
• The procedure is transparent.
• Loans are offered both salaried and self-employed.
• No need of a guarantor or security deposits.
• The loan can be up to Rs.30lacs
• Easy hassle free documentation process.
• Lower Interest Rate
• Competitive pricing
• Nil or part payment options.

FOIR (Fixed Obligation to Income Ratio) on Personal Loan Balance Transfer

FOIR (Fixed Obligation to Income Ratio) is a constant that banks use to calculate the loan eligibility, Most of the banks offer up to 50% FOIR or even more in some cases for professionals in India.

If your salary is 1lac or more than 1lac your FOIR can be 65%. Doctors or self-employed can avail loan 100% of FOIR. For self –employed non-professionals the tenure will be 30 months to 48 months, For salaried, the repayment tenure will be 60 months to 72 months and for any Self-employed professionals the repayment tenure will be up to 60 months.

Personal Loan Balance Transfer Charges

A the charge for Personal Loan Balance Transfer varies from bank to bank. Key charges for Personal Loan Balance Transfer are foreclosure charge and processing fees.

• You have to pay the foreclosure charge to your existing bank. The rate can be nil to up to 2%.
• You also have to pay the processing fee to your new bank from flat Rs.999 to up to 2%. However, it changes time to time so before availing any must check online.

Personal Loan Balance Transfer Process

• First, you have to check the present interest rate you can get on a personal loan and calculate interest savings.
• Calculate all the charges you have to pay for transferring the personal loan.
• Calculate all the benefits and decide if you want to transfer or not and if it is yes shortlist some banks and compare their features and benefits they are willing to give you.
• Apply for a NOC and a foreclosure letter to your current loan provider.
• Apply for personal loan at a new bank and submit all your documents with complete repayment record.
• Obtain sanction letter and execute a new loan agreement with the new bank.
• Take the disbursement from new bank by demand draft or cheque then deposit it to your old bank.
• After you pay the outstanding bank will close your existing loan account