Easy Balance Transfer for Personal Loans
Personal Loan Balance Transfer as a concept was first linked with a transfer of your outstanding balance
Better interest rates – You have taken a loan from Bank A while working in a mid size company. You have now moved to a Category A (large and established) organisation to which banks offer a better interest rate. If the probability of the current lender reducing the interest rate is low, you can move your outstanding loan amount to Bank B with an minimal charge and would end up paying lower EMIs
- Offer by banks on Balance Transfer – Let us assume that you have taken a loan from a bank and have been paying the installments on a regular basis. Your profile too matches the ideal or favorable criteria of any bank. In this case, other banks would want to acquire you as a customer as they would be sure of your intention and ability to repay based on past records. In such a case multiple banks will be willing to offer an interest rate lesser by a sizable percentage of about 2% – 3% if you undertake a Balance Transfer.
- Top-up Loan – A final scenario when you would want to go for a Balance Transfer is when you need to borrow more money. If you already have a regularly-serviced loan with a certain bank and are in need an additional loan (called a top-up), a separate bank might be willing to offer it at a better rate if you agree to transfer the outstanding balance of your current loan to them.