Transfer Your Personal Loans – Know all about it
Posted: Nov 03, 2018
Transfer Your Personal Loans – Know all about it
The balance transfer involves the transferring of the outstanding principal loan amount from the present lender to another lender. The main purpose of transferring the outstanding principal amount is to get better loan terms like the reduced rate of interest and thus effectively saving additional amount to be paid as the interest. Almost every bank has the facility to the balance transfer, and this is regarded as a simpler process. While, the balance transfer can be seen in longer tenure loans, like home loans in most cases, there are several types of loan where the balance transfer is seen; and the personal loan is one of them. While the prime motive of the balance transfer is to save to on debt and reduce the interest on a loan the banks all over the country offer the balance transfer facility ranging to all loan types.
The concept, which began with the credit card balance transfer has found its way into all other forms of the loans and now the banks and other lending agencies offer the balance transfer spread around all forms of the loans, either it is a home loan or a Personal Loan.
When it comes to the balance transfer of Personal Loans, there are various aspects, one should look for. Any balance transfer cannot be done with closed eyes and you need to carry out the full analysis on what the other lender, will offer you for the balance transfer. Banks allow balance transfer with a view to the reduced rate of interest or with the reduced loan tenure. Generally, banks levy almost zero charges for the balance transfer facility and thus the people looking towards the reduced loan responsibility can most often complete the task without any worries. But there are still several considerations, which you should take deeply analyze before opting for the balance transfer. Today, we are going to discuss all the important aspects, which plays a role in the Personal Loan balance transfer. While the Personal Loan balance transfer process can help you in moving to the reduced loan burden, there are several important factors worth considering before the Personal Loan balance transfer. Here are they:
Understand why you need to opt for the Personal Loan balance transfer
In order to get the best deal on your Personal Loan balance transfer, the first important consideration is what’s actually is your motive for the balance transfer. What’s the real compelling reason for you to take this step and look for the other lender? As soon as you realize your actual needs and aspects, which you are looking for, you can make a choice of the better new lender for your Personal Loan.
In most of the cases, the Personal loan or any other loan balance transfer is done for the motive to save high interest currently levied on your Personal Loan. The balance transfer allows you in switching to the new lender with the reduced rate and thus in the process of getting successful in saving interest and thus reducing the burden of Personal Loan. However, there may be several other reasons, for the Personal Loan balance transfer which may be in the form of unsatisfactory services of the present lender. Thus, understating the exact compelling reason for the Personal Loan balance transfer is a must. Here are some compelling reasons for the Personal Loan balance transfer
In search of the better rate of interest: With the better rate of interest, you can save a good amount to be paid as interest on your existing Personal Loan. Thus, opting for the lender, which is offering you a reduced rate of interest on your personal loan will be a better choice, as it helps you in saving your money
In search of better Offers on the transfer of loan amount: With the choice of the new lender for your Personal loan balance transfer, you can be offered several other offers and schemes on your loan, which you are looking for. For example, you may be looking for the Personal Loans to close very early; the new lender with the reduced rate of interest allows you to close the loan in quicker time as compared to the existing lender. You may also be offered several offers like last EMI Waiver, or zero processing charges etc, which comes as an added incentive on the Personal Loan, which many borrowers may be seeking for!
In search of a Top-up loan facility that allows one to borrow more loan money: In some cases, you may be in need of the additional funds to serve other purposes. While your existing Lender may not provide you the facility of Top Up loan, there are certain lenders, who can offer you with the top up loan facility and can meet your need easily.
When your current bank and you could not agree on certain terms: You may not agree on certain loan terms with your existing lender, which can happen after you got a deal with the lender. In such a case, you are left with only an option to Personal Loan Balance Transfer.
Due to Dissatisfaction with the service offered by the current lender: You may be on the wrong side of the services as offered by the current lender, and you may not bear anymore their stupid services. You are now fed up with the unsatisfactory services that can range from anything; from resolving your queries to any other issues. In such a case, you are left with the sole option of switching your lender with the process of the Personal loan balance transfer.
If you made up your mind to go for the Personal loan balance transfer, let check some of the eligibility criteria for Personal loan balance transfer
Eligibility Criteria for Personal Loan Balance Transfer
There is always a need to meet certain eligibility criteria to avail the Personal Loan balance transfer. In most of the cases, it’s the repayment capability of the applicant, which decides the success or rejection of the personal loan balance transfer. Here are some eligibility criteria, mentioned below:
A minimum of Rs. 50k has to be a current outstanding loan amount in order to initiate the balance transfer process.
You must not have defaulted on any EMI in the past on your existing Personal Loan for which you are applying for the Balance transfer.
Your previous twelve installment payouts of the existing loan will be checked.
You will be in need of one or more additional loans/credit cards to be in good standing as per the requirement of new lender or financial institution
Documents Required for the Personal Loan Balance Transfer
Application form for personal loan balance transfer
Passport size photograph
Proof of Identity
Address Proof like Aadhaar Card/Passport/ Landline Bill/ Latest Electricity bill/Rent agreement etc
PAN Card copy
Bank statements of last 6 months
Salary slips for last 3 months
Statement of a personal loan from the current lender
While, in the case of the self-employed there’s a slight change in the documents requirements, with the below documents:
In place of the salary slips the applicant must show Last 3 years Balance sheet along with profit and loss statement pertaining to business
TAN is required
Last 6 months bank statement of the business entity
While you may have checked the Personal Loan balance transfer eligibility, it’s the time to consider what factors should be considered while opting for the Personal Loan balance transfer:
Consider the cost involved
Personal Loan Balance Transfer may involve some cost too. It depends on the current lender and the future lender, on what you have to bear for your Personal Loan balance transfer. The current lender may seek in the foreclosure charge for your exciting personal loan to be closed, while the new lender may ask for the processing fee. Of course, everything depends on the banks, which you tied up with and with which you are tying for. Thus, knowing all the costs involved and analyzing them for your Personal Loan balance transfer is a must.
Accessing new offers without missing
There may be several offers which any new lender is offering for a limited period. Keeping a tab on those new offers and jumping in at those offers, without missing them can be the best step for your Personal Loan Balance transfer. By availing several new offers and schemes, you can save potentially a lot of money at your personal loan.
Analyze the offer as per your requirement
The offers are unlimited when it comes to the balance transfer; but how many of them are useful for you and meet your requirements? In fact, there are many offers that aren’t required by you and can be just useless ones. There may be cases when the top up loans and other such features aren’t required by you. Thus, getting inspired by such offers will never be a good idea. All you need is to take the balance transfer facility only if it suits your unique requirement, you are looking for. Thus, consider all the offers and facilities as offered by the new lender, analyze those offers deeply and make a decision based on your needs and requirements and based on the effectiveness of the balance transfer in the long term.
Read the terms and condition carefully
Just closing on any deal with the new lender, you should read the fine print very carefully and get to know all the terms and conditions for the Personal Loan balance transfer. Going through every essential of the personal loan balance transfer will help you in remaining aware of the key information regarding any charges (mostly the hidden charges) and rest conditions, which may not be in your favor.
Is Personal Loan balance transfer beneficial?
If you are really thinking, if the Personal Loan balance transfer is beneficial or not, you have to dig deep in your mind and analyze what you are exactly looking for at the Personal Loan balance transfer. If you are really looking for the beneficial aspects of the Personal Loan balance transfer, the balance transfer offers with several laid down benefits. But it completely depends on you, on why are you looking for the process of the balance transfer and of course depends on the choice of the new lender for your Personal Loan balance transfer.
If you already committed an error in making the wrong choice of your personal loan, it will be always beneficial to make a new search for the new lender, which can lend you with the needed benefits and requirements. However, if you fail to find the perfect match, you may again be in the same situation as you are in presently. Thus, the Personal Loan balance transfer benefits depend on the choice of the new lender and based on the benefits you are looking for and the benefits the new lender is offering you with.
If you are unsatisfied with your current lender and seeking a chance to get better terms and conditions and better services, the Personal Loan balance transfer is one option, which can let you get rid of your bad loan and offer a breathing space and freshness in your Personal Loan. Opting for the Personal Loan balance transfer, help you with the reduced rate of interest and longer loan tenure along with the several other benefits. However, the balance transfer is only possible, if you have successfully paid all your EMIs to your current lender. Thus, even if you haven’t applied for the Personal Loan balance transfer, don’t skip the EMIs thinking that you will be switching your lender very soon.
Your liability is attached with your Personal Loan and not with the lender, thus you must be responsible towards the payment of the Personal Loan at all cost. Keep on searching for the best match for Personal loan home transfer and apply for the process as soon as you find it!