Personal Loan Balance Transfer Calculator

Just like you look for lucrative deals when buying a product or opting for a service, you can also opt to get the best deal on your existing personal loan by opting for a balance transfer. To help borrowers reduce their overall burden of debt, banks offer personal loan balance transfer facility that enables you to transfer outstanding principal amount from one lender to another. This facility thus helps pay less interest rate.

What is a Personal Loan Balance Transfer?

In simple terms, a personal loan balance transfer is a process by which you can transfer your existing outstanding principal loan amount from one lender to another who is offering low-interest rate on the loan amount. This facility thus helps one to get a personal loan at low-interest rate. Earlier, banks provided this facility only for credit card balance transfer, but now this facility is available for all types of loans. You can opt to do the balance transfer from one bank to any bank of your choice that is offering you the lowest interest rate on the same amount along with additional benefits if any. However, if opting for a personal loan balance transfer, you will also have to pay the processing fee, stamp duty charges levied by the new lender.

Benefits of opting for a Personal Loan Balance Transfer

• For a better rate of interest: One of the best benefits of opting for a personal loan balance transfer is that you get the loan amount at a preferably low-interest rate that reduces your overall EMI. In the case of loan transfer, the new lender will usually offer a low rate of interest. However, it is always a better idea to compare the interest rates and other charges when opting for this facility.
• Opt for a longer tenure: In case you wish to reduce your existing monthly burden of paying hefty EMIs, then you can ask the new lender to increase the tenure of the loan. However, opting for longer tenure will attract a high-interest payout. Also, it is important to note that personal loan is generally offered for a tenure of up to 60 months.
• Better features: In case you have a good repayment history, then the new lender can offer you added benefits such as zero processing fee, waiver of last EMI, insurance cover and others.
• Top-up loan facility: In case you need more money, then you can opt for a top-up loan facility along with balance transfer. But this is offered only if you are ready to transfer the current outstanding loan from a current lender to a different lender.

Personal Loan Balance Transfer Eligibility Criteria

In case if you’re looking to avail a personal loan balance transfer, then you must comply with the below eligibility criteria.

• You should have a good repayment record
• You should have a good credit score
• Current outstanding loan amount should be a minimum of Rs. 50,000 to initiate the transfer

Documents required for a Personal Loan Balance Transfer

1. Documents to be submitted by salaried individuals
• Duly signed application form
• Passport size photograph
• Identity proof i.e. PAN card, driving license, voter ID, Aadhar card, etc.
• Address proof i.e. Aadhar card, passport, utility bill, etc.
• Last 3 months salary slip
• Last 6 months bank statement
• Statement of existing personal loan from the current lender
2. Documents to be submitted by self-employed individuals
• Duly signed application form
• Passport size photograph
• Identity proof i.e. PAN card, driving license, voter ID, Aadhar card, etc.
• Address proof i.e. Aadhar card, passport, utility bill, etc.
• TAN card
• Last 6 months bank statement
• Statement of personal loan from the current lender
• Balance sheet of last3 months specifying profit and loss

Based on the submitted documents, banks will check your creditworthiness and offer you the balance transfer facility.