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Personal Loan Balance Transfer
Have you ever wondered whether you could transfer your current personal loan to another bank that offers better interest rates? A personal loan balance transfer is a facility that helps you to reduce interest costs and manage your repayments efficiently.
100% Digital Loan Process
Apply online from start to finish
Minimal Documentation
Simple KYC, no paperwork stress
Quick Approval & Instant Disbursal
Quick approval, instant credit
Dedicated Support
End-to-end loan assistance
2.3 Cr+
Satisfied Customers
95%
Instant Approval Rate
40+
Available Lenders
4.5 / 5
Compare Top Lenders Offering Personal Loan Balance Transfer
Max Tenure6 - 48 Months
Best Rate18%
Processing Fee4%
Max TenureNA
Best Rate1.58%
Processing Fee2%
Max Tenure2 - 60 months
Best Rate18%
Processing FeeRS: 399/- to 2%
Loan Amount Upto 7 lakhs
Max Tenure12 to 48 Months.
Best Rate15%
Processing Fee3%
Max Tenure12-60 Months
Best Rate18%
Processing Fee2%
Max Tenure12-36 Months
Best Rate16%
Processing Fee2%
Max Tenure12-36 Months
Best Rate18%
Processing Fee3%
Max Tenure3 – 60 months
Best Rate22%
Processing FeeFrom 2%
Max Tenure12 - 36 Months
Best Rate18%
Processing Fee1.5%
Max Tenure12 Months.
Best Rate35%
Processing Fee2.5%
Max Tenure 18 Months.
Best Rate35%
Processing Fee2000₹
Max Tenure3 – 60 months
Best Rate16%
Processing FeeFrom 2%
Max Tenure36 Months.
Best Rate35%
Processing FeeNil*
Personal Loan EMI Calculator
Your Monthly EMI Payment
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What Is a Personal Loan Balance Transfer?
A personal loan balance transfer allows you to move your existing loan to a new lender offering a lower interest rate with better repayment terms and conditions. This personal loan balance transfer helps you reduce your EMI burden and overall interest costs. Instead of you handling an expensive loan, a balance transfer lets you save more each month, manage your finances more efficiently, and regain control over repayments without taking on additional debt.
The Personal Loan Balance Transfer is a process that does not require any collateral. But a balance transfer always comes with nominal charges, such as processing and foreclosure fees.
How Does Personal Loan Balance Transfer Work?
Though the Personal Loan Balance Transfer process looks very easy on the surface, it is not. You need to look into various options available before settling on one. The following is the list of steps to follow when you intend to do a balance transfer.
- Evaluate Balance Transfer Offers :
- Check with the other lenders available regarding interest rates, tenures, and the terms and conditions they offer.
- Look for additional benefits, such as top-up loans or reduced foreclosure charges.
- Verify The Eligibility Criteria :
- Check whether your current credit profile meets the lender's eligibility criteria.
- Some lenders state that the current loan must have at least 12 months of repayment history.
- Go In for a New Lender :
- Submit the required documents specified by the lender.
- Some lenders might ask you to submit your credit report and salary slips.
- Close Your Old Loan Account :
- Once the new lender sanctions the loan account, they will repay your old loan account.
- It is time to close the old loan account. Pay the requisite pre-closure charges applicable to the old lenders.
- Start Repaying EMIs Under New Lender :
- Start on-time payments with the new lender.
- Make sure to set auto-debit to avoid late payment charges.
Key Benefits of Personal Loan Balance Transfer
Personal Loan Balance Transfer is done primarily to reduce interest and secure better terms and conditions. The following are key benefits of a personal loan balance transfer. They are:
-
Favorable Rate of Interest : A personal loan balance transfer is a facility that helps reduce interest payments. One of the key benefits of a personal loan balance transfer is a favorable interest rate.
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Reduced Monthly Repayment Burden : You can explore the monthly EMI burden by extending the repayment tenure. A longer repayment tenure means reduced monthly EMI burden.
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Smarter Borrower-Friendly Terms : The terms and conditions for the personal loan balance transfer include minimal transfer charges, no penalty charges, and more.
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Top-up Loan Facility : If you are facing an error in calculating financial obligations. You can also get a top-up loan facility from the new lender at a revised, reduced rate of interest and with additional funds, making it easier for you to meet your financial obligations.
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Improved Post-Disbursement Support : Bad customer service from the previous lender is also a reason to consider a balance transfer. You can enjoy the privilege of a comfortable service with the current lender.
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Debt Consolidation Purposes : There are times when you have to handle multiple loans with different interest rates. If you are planning to combine all your loans into a single loan with a competitive interest rate, you can opt for a debt consolidation loan.
Banks & NBFCs Offering Personal Loan Balance Transfer
Balance Transfer is a facility not offered by all lenders. It is specific to certain lenders. You need to review and identify lenders willing to provide a personal loan balance transfer. The following is the list of banks and NBFCs currently offering a Personal Loan Balance Transfer facility.
Lender
Rate of Interest
Repayment Tenure
Lender
HDFC Bank
Rate Of Interest
9.99% to 24%
Repayment Tenure
Up to 60 months
Lender
Axis Bank
Rate Of Interest
9.99% to 22%
Repayment Tenure
Up to 84 months
Lender
Kotak Mahindra
Rate Of Interest
Starting at 10.99%
Repayment Tenure
Up to 72 months
Lender
IDFC First Bank Ltd
Rate Of Interest
Starting at 9.99%
Repayment Tenure
9 to 60 months
Lender
Bajaj Finance
Rate Of Interest
Starting at 10%
Repayment Tenure
Up to 96 months
Lender
Tata Capital
Rate Of Interest
Starting at 10.99%
Repayment Tenure
Up to 60 months
Lender
Fibe
Rate Of Interest
Starting at 9% to 10%
Repayment Tenure
Up to 36 months
Lender
MoneyView
Rate Of Interest
Starting at 14%
Repayment Tenure
Up to 60 months
Lender
KreditBee
Rate Of Interest
Starting at 12%
Repayment Tenure
Up to 60 months
Lender
CASHe
Rate Of Interest
Starting at 2.79%
Repayment Tenure
Up to 18 months
Lender
Kissht
Rate Of Interest
Starting at 6%
Repayment Tenure
Up to 60 months
When Should You Opt for a Personal Loan Balance Transfer?
Individuals primarily use Personal Loan Balance Transfer to better manage their loans. But there are a few impending reasons available when one needs to go in for a personal loan balance transfer. They are:
- Higher Interest Rate : Your current loan has an interest rate significantly above the prevailing market rate.
- Initial Stage of Repayment : You should be at the initial stage of loan repayment. Doing a balance transfer at a later stage of the loan will not help you earn interest.
- Savings : You have enough interest income to offset the balance transfer fees.
- Better Customer Service : You can enjoy an accelerated customer service with digital access and with more flexible repayment options.
Personal Loan Balance Transfer Charges & Fees
Personal Loan Balance Transfer Charges and Fees are the costs that are involved when you move your personal loan from one lender to another for a competitive interest rates and better terms and conditions. Some fees include the processing charges, foreclosure charges, stamp duty charges, documentation charges, and so on. Getting an idea of the charges will ensure that the balance transfer is profitable for you.
The following table lists the charges expected for a personal loan balance transfer.
List of Fees
Amount
Fee Type
Processing Fees
Amount
0.5% to 5% of the loan amount
Fee Type
Foreclosure Charges/Prepayment Charges
Amount
1% to 5% of the outstanding principal amount
Fee Type
Stamp Duty Charges
Amount
Depends on the state
Fee Type
Documentation Charges
Amount
1% to 3.5% of the loan amount
Fee Type
Legal/Verification Fees
Amount
0.5% to 4%
Fee Type
Account Closure Charges
Amount
2% to 6% of the outstanding loan amount
Fee Type
Late Payment Penalty
Amount
Rs. 500 to Rs. 1500 per missed EMI
Eligibility Criteria for Personal Loan Balance Transfer
Most lenders have their own eligibility criteria for a personal loan balance transfer. Here are a few eligibility criteria for a personal loan balance transfer. They are:
- Age: Minimum Age of 21 years to 65 years of age.
- Employment Profile: Both salaried and self-employed professionals can go for a personal loan balance transfer.
- Monthly Income: Rs.15,000 to Rs.25,000
- Work Experience: A minimum of 1 year is required.
- Credit Score: Usually 750 and above
Documents Required
Approval for a personal loan balance transfer also requires the submission of a set of documents. Though the list of documents may vary between lenders. The following is the list of documents needed for a personal loan balance transfer. They are:
- No Objection Certificate from the original bank.
- The latest copy of the loan statement
- ID Proof: Aadhar card, PAN card, Driving License, Passport, Voter's ID card
- Address Proof: Aadhar card, Driving License, Utility Bills, Rental agreement
- Income Proof:
- Salaried Individuals: Latest salary slips/ bank statements/income documents
- Self-Employed Professionals: ITR, Bank Statements, Profit & Loss Statement
- Form 16
Things to Consider Before Opting for Balance Transfer
Balance transfer of personal loans is always a better option when you want to save money by paying a lower interest rate and get better terms and conditions. But you need to be careful when choosing a balance transfer so it doesn't burn your fingers. Some things need to be considered while opting for a personal loan balance transfer. They are:
Compare Interest Rates Across Lenders:
You need to check the interest rates across all lenders to see whether the new lender’s rate is competitive.
Identify All Fees and Hidden Charges:
You need to look for various fees and hidden charges that come with the new lender. Make sure it won't burn a hole in your pocket later.
Review All Terms Before Signing:
You need to go through the terms and conditions of the new lender. Make sure they align with your expectations. If not, get it clarified with the lender immediately.
Total Cost Savings:
You need to compare the overall savings that you make after taking into account the processing fees, foreclosure charges.
Evaluate Lender’s Reputation:
Check whether the new lender offers effective customer service along with transparency. You need to understand whether the grievance addressal system is in place.
Revised EMI and Repayment Period:
You need to understand the revised EMI, the loan tenure, and how they will impact your monthly cash flow.
Conclusion
Personal Loan Balance Transfer is opted to reduce interest payments, secure better terms and conditions, and receive better customer service. This will ultimately help you manage finances better. Make sure the new lender you choose meets the requirements you have in mind. This will help you pay all your debts and meet your financial needs without taking on any future loans. With perfect planning, a personal loan balance transfer will help you to gain a hold over your finances and make the repayment process more effective and manageable.
Disclaimer : This page includes information that has been compiled from many sources and is only offered for informational purposes. Given that this type of data may change over time, we cannot guarantee the accuracy of the information supplied or included within it. It is anticipated that the user will confirm with the relevant source before making any choices or taking any actions.
Frequently Asked Questions
