Ever-versatile Personal Loans can help you obtain funds for all kinds of expenses – from medical emergencies to leisurely spends. These easily accessible loans offer flexible repayment tenures too. But what do you do if you find another lender offering the loan at a lower interest rate after you have already obtained a loan and started paying EMIs? You can opt for a Personal Loan Balance transfer. Let us understand the meaning and uses of this unique loan.
What is a Personal Loan Balance Transfer?
A Personal Loan Balance Transfer, as the name suggests, is a type of loan wherein you can transfer the Personal Loan to another bank. It basically means that you can transfer the outstanding amount of your existing Personal Loan from one bank to another. You should typically opt for this facility if you find another lender offering a lower interest rate, which effectively reduces the total cost of your loan.
How is a Personal Loan Balance Transfer useful?
Opting to transfer your Personal Loan to another bank can prove incredibly useful. Here’s how:
- Your Interest Rate Reduces
It makes sense to transfer your Personal Loan to another bank if you find a lender offering a lower interest rate. The reduced interest rate results in lower Equated Monthly Instalments (EMI), which further translates to more savings in your pockets. However, you should compare the Personal Loan Balance Transfer interest rates and the other costs associated with transferring the loan to a new lender, such as the loan processing fees, transfer fees, foreclosure charges, and so on.
Read more about Personal Loan EMIs by clicking here. - You Can Avail of the Top-Of Facility
Personal Loan interest rates on Balance Transfer, may reduce when you switch lenders but you can also utilise this facility to obtain more funds. As such, you can enjoy a top-up loan that grants you access to a higher loan amount at the renewed, lower interest rates. If you need more funds, it may make financial sense to opt for a Personal Loan Balance Transfer rather than taking on another brand new loan. - You Can Get An Increased Repayment Tenure
Yet another benefit of opting for a Balance Transfer is that you can get an increased repayment tenure. Your new lender considers the transferred loan as a brand new loan, which means you can modify your repayment tenure and even opt for longer repayment tenures with lower EMIs. A longer repayment tenure allows you to repay your loan EMIs flexibly, fitting within your monthly budget. - You Can Get Better Services
You may benefit from a Personal Loan Balance Transfer if you feel that the services provided by your new potential lender may be better than what is currently on offer to you. For instance, you can transfer your loan if you need a lender to send you EMI payment reminders, timely updates, and provide better customer service facilities. Likewise, you may prefer online payments with standing instruction facilities instead of post-dated cheques. You can base your decision to transfer your loan on these facilities if they seem essential to you and your existing lender does not have the means to offer them.
You Can Get Access to Exciting Offers
Many banks provide lucrative offers on Personal Loan Balance Transfers. Some may offer discounts on the loan processing fee, while others may waive it altogether. Sometimes lenders offer to pay off the loan foreclosure fee on your behalf or give you a waiver on your last EMI, but all these options are contingent on the offer being applicable to you at the time of the balance transfer.
Personal Loan Balance Transfer with HDFC Bank
If you are looking for a Personal Loan Balance Transfer at low interest rates, your search may be at an end with HDFC Bank. Our simple loan transfer process and access to Top-Up Loan facilities ensures that your credit needs are met from the moment you choose to bank with us. If you are looking forward to a Personal Loan Balance Transfer at low interest rates you can start your journey with us by clicking here.
*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Personal Loan at the sole discretion of HDFC Bank limited. Loan disbursal is subject to documentation and verification as per Banks requirement.