Personal Loan Balance Transfer

A lot of people use personal loans these days to finance expensive items and costs. They turn their purchase into EMIs, or equivalent monthly installments, by doing that. When it comes to organizing a wedding, sending a child abroad for higher study, taking a trip, remodeling a home, or dealing with an unexpected medical expense, personal loans might assist consumers to cover any financial gaps. It's possible to uncover better possibilities while managing the present loan, though, as not all personal loan offers are created equal. They might then think about moving their loan balance to a different lender who is offering a better deal
An outstanding loan balance can be transferred from one lending institution to another, usually at a cheaper interest rate, through a personal loan transfer. Similar to a personal loan, there is no need for collateral, security, or guarantors throughout the balance transfer procedure. But depending on the existing lender's policies and the most recent RBI standards, the person transferring the loan might have to pay prepayment penalties to them. If necessary, the procedure can also entail paying processing costs and stamp duty on the new loan agreement. To maximize the benefits of a loan transfer, one must carefully consider the terms of the new loan offer and select the best course of action.

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Benefit of Personal Loan Balance Transfer

The following are some advantages of transferring a personal loan

Interest Rate Savings

One of the main advantages balance transfer facilities offer borrowers is a reduced interest rate. When an offer from another NBFC with a lower interest rate is made, the majority of borrowers move their loans. As a result of the lower interest rate, the borrower will be able to save more money and pay back the EMIs more quickly. Because of this, it is usually a good idea to consider the offer, weigh the costs, and determine the requirements before completing a balance transfer.

Extended Tenure

Depending on the borrower's ability to repay, the tenure may be negotiated and extended or shortened throughout the transfer procedure. They have less monthly EMI to pay when the duration is prolonged. Conversely, selecting a shorter loan duration will result in lower total interest costs, but higher monthly payments for each installment.

Improved Features

The borrower may be able to bargain with the lenders for improved features like the waiver of the previous EMI, no processing fees, reduced interest rates, etc., depending on their income and repayment history. Better loan features are made possible by the loan balance transfer function, which also lowers interest costs.

Top-Up Loan Facility

In addition to allowing balance transfers for personal loans, most lending institutions also provide a top-up facility for loans. These top-ups have comparatively low interest rates and highly competitive pricing.

Eligible for Personal Loan Balance Transfer

Certain requirements must be satisfied in order to be qualified for a FinCrif personal loan balance transfer. Among them are

  • The principal balance of the current personal loan at least must be greater than RS.50,000 in order to qualify for a balance transfer.
  • Since a balance transfer can only be made in increments of RS.50,000, the principal balance of the current personal loan must exceed RS.50,000.
  • The applicant should be allowed to pre close the personal loan, provided that the terms and circumstances outlined in the personal loan agreement are met. The parent bank should grant the request. In order to enable a pre closure, the applicant was required to repay a certain number of EMIs.
  • The personal loan in question needs to have an unambiguous repayment history with timely payments.
  • The candidate's CIBIL Score has to be higher than the necessary threshold. The applicant should have a good history of repaying the other credit lines that they are using.

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Documents Required for Personal Loan Balance Transfer

You must have these documents in order to start the process of transferring the remainder of your personal loan

  • Properly completed application for balance transfer
  • Proof of address and identity
  • Copies of PAN cards
  • Financial records over the last six months at least
  • At least three months' worth of recent pay stubs
  • For independent contractors or business owners, a three-year financial sheet
  • A letter from the existing lender with loan statements

Steps for Personal Loan Balance Transfer

A balance transfer is a type of financial transaction where the borrower moves debt from one lender to another. Paying back the existing loan debt and applying for a new loan are the first steps in the process. Here are the steps that need to be followed

  • Visit the official website .
  • Firstly , login with your name and number .
  • Then fill your employment type.
  • Verify OTP.
  • Upload all the documents and submit .
  • Last , you will get a call from the Fincrif team and help you to proceed next.