What Is A Balance Transfer For Personal Loan?

Balance Transfer is a facility offered by banks and it is now possible balance transfer personal loan. Banks and financial institutions now allow transferring of the principal amount to other banks so alike, which can be described as a balance transfer.

However, balance transfer involves an interest rate of minimum of 9 %, which can go up to 12 %. That totally depends upon cases to cases and from banks to banks. It is understood that the period of repayment ranges between 12 months to 72 months.

Balance transfer personal loan can be done via inter banks or other banks. And in this article, we will talk about the features of personal loan balance transfer and the eligibility.

  • Attractive Interest Rate

If you choose a balance transfer on your personal loan then there is a probability of obtaining a lower EMI (Equated Monthly Instalment) rates from a newer lender. This can be very beneficial as it removes the need to pay extra EMI charges and also finish off the loan liability much quicker.

  • Excellent Features

There are cases when the former lender becomes, you’re enemy and your new lender becomes your saviour. It has been found that the new lender automatically offers better deals such as low interest rate, lower processing fees and other miscellaneous fees.

  • Loan Tenure Extension

It can aid in the extension of your existing loan period. Since the funding from the new lender is fresh, therefore, you will have to accept to the latest terms and conditions. You can add or remove co-applications when performing a balance transfer.

Who are eligible for Balance Transfer Personal Loan?

The eligible criteria for personal loan balance transfer are similar to any other type of person. However, it does vary from lender to lender in terms of eligibility as banks and financial institutions follow different policies.

However, reports show these are the most eligible requirements.

Who Are Eligible Salaried employed individual In the private sector or government sector
Age  Minimum age of 21 years
Experience Having a work experience of more than 6 months with existing employers
Income Minimum Monthly Rs 15,000
   

 

Conclusion:

We believe you had fun reading our article and hope it was found that to be informative. And balance transfer personal loan is possible however, it is important to compare various lenders.