2) Details of the previous loans and A/c Statement for last 1 year, if any
Personal Loan Track of the Existing Loan.
Request Letter for Balance Transfer.
Fore closure letter from External financer.
Balance Transfer Of A Personal Loan
The term Balance transfer of a Personal loan is used to define the process of transferring an existing Personal Loan from the parent organisation to another Bank or financial Institution. The priority being that the Loan in question is being paid back successfully without any delays or bounces.
By this initiative the Banks taking over the Personal loan are assured of an increased turnover with a minimum default. To Lure good customers & convince them to transfer their Loan account, better terms & conditions are offered such as a minimal Rate of Interest & processing fees.
Balance Transfer Of your Personal With ‘The Balance Transfer Experts “Your Loan Advisors”
The term Balance Transfer of a personal Loan means that an existing Personal Loan customer can transfer the Principal Balance amount of Personal Loan remaining to another Loan provider of her/his choice.
Leading Banks offer numerous benefits to existing Personal Loan customers who have been paying their monthly instalments on time.
Major benefits offered to customers include.
Reduced rate of Interest starting from 11.29% onwards.
Increased Loan amount at the same rate.
A chance to reduce the current EMI.
Before applying for Balance transfer an applicant should check if the current Personal Loan is eligible for a transfer & if the current Bank with which the Personal Loan is running will allow you to pre close the Loan. There may be foreclosure charges levied by the parent bank on the principal amount balance.
It is advisable to calculate the total cost of the manoeuvre & the Benefits that can be derived from the same;
Given below is an illustration of savings.
ORIGNAL LOAN AMOUNT
PRINCIPAL BALANCE OF LOAN
FOR BALANCE TRANSFER
NOS OF EMI’S PAID
RATE OF INTEREST
RATE OF INTEREST
Reasons For Balance Transfer Of Your Personal Loan
A Personal Loan is quick finance available at the time of need. If a Personal Loan has been taken in an emergency there might not have been enough time at hand to survey the market for the best terms & conditions available.
One need not be worried as there is an option available to get the best deal available by taking a Balance transfer of the current Loan. Customers should seek a Balance transfer early in the tenure to gain the most, taking a Balance transfer once during the tenure should be considered ,the reason for Balance transfer of the Personal Loan can be any of the following;
For a lower Rate of Interest– Banks offer the best rates are available for a Personal Loan Balance Transfer of Customers with a good track record of timely payments. Customers who are paying an inflated rate of interest should consider taking a Balance transfer of their personal loan as soon as permitted.
To reduce the current EMI – If paying the current EMI is becoming a burden on your budget it is good decision to take a Balance transfer of you personal loan. A lower EMI can be achieved by increasing the tenure for which the Loan has been granted. It is important to plan your finances & apply for a balance transfer soonest. Default or delays in payments should be avoided at any cost.
“To get an additional Loan amount or Top Up“-The rate of interest offered for a Balance transfer is also valid for additional funds required. Together with a request for Balance transfer of the Personal loan apply for the extra amount you need as a top up to the original loan amount. Get the additional funds in a single loan, with the lowest rate of interest.
To create additional eligibility – All Banks have a system to calculate the maximum Loan amount that can be lent to a loan seeker. This loan amount is calculated as per the income earned & the total obligations including loan EMI’s & Credit Card outstandings. There should be a sufficient salary balance with the customer to meet the expenses of day to day living. If at this juncture there is a plan to buy a new Home or a new Vehicle & an additional Loan is required, create additional eligibility by taking a Balance transfer, so that your new loan application is successful.
Process For Balance Transfer Of Your Personal Loan
Being ahead with your financial planning always works to your advantage: Making a decision to take a balance transfer of your personal could be for any of the reasons cited above or for simply not being satisfied by the services of your current Personal Loan provider.
Given below are the steps that can be followed to achieve a successful transfer of your current Personal Loan.
Verify The Terms & Conditions Of You Existing Personal Loan
Only seek to apply for a Balance transfer of your Personal loan if the current personal loan terms & conditions are conducive to the Balance transfer i e; that the minimum no’s of EMI’S to be paid as per the pre closure clause are over.
Check If The Balance Transfer Works To Your Benefit Financially By Taking Into Account The Following
The Pre closure amount
The Current Rate of Interest & processing fees.
The EMI you will be required to pay after opting for the Balance transfer.
Check The Offerings Of All The Banks To Choose Which Is The Most Suitable
Check the terms & conditions of all the banks offering to take over your Loan. It is advisable to compare & confirm;
The rate of Interest
The new EMI for the total loan amount after the Balance Transfer.
The pre closure terms & conditions of the Bank offering to take over the Personal Loan.
Contact us at www.yourloanadvisors.com to get a detailed & comprehensive presentation of your Personal Loan Balance Transfer .We help you to apply & complete the entire process at your convenience.
Application For Balance Transfer Of Your Personal Loan
To initiate your application for Balance transfer, first apply for the statement of account of the current loan, this will determine the principal “balance amount outstanding” for Balance transfer, this statement is to be submitted along with the requisite documents.
The process for Balance transfer is similar to that of a fresh loan. The Bank will process the loan application as per its regular verification & approval process.
Closure Of The Previous Loan: & Starting Of Your New Emi Post Balance Transfer
After the Loan application is approval & an agreement is signed, a bankers draft for the amount of Balance transfer is handed over to the applicant. Any pre closure charges if applicable can be included in this amount.
The applicant is to close his previous loan by depositing the draft & obtain a receipt for the same.
Henceforth a new Emi will start for the loan amount transferred & any extra amount added.
This completes the process for the closure of your existing Personal Loan & start of your new loan account post the Balance transfer.
Why contact Yourloanadvisors.com to assist you for the Balance Transfer of your Personal Loan?
The Balance Transfer of a Loan is a unique facility provided by the Leading Banks for existing loan users.
Though it is cited as a win-win manoeuvre, like all credit instruments the advantages of the same is suited as per individual profile & financial needs.
We at yourloanadvisors.com are well placed to give our valued customers a personalised analysis of their current credit status & if taking a Balance Transfer of their personal loan are advisable.
We are ready to answer all your queries related to the Balance Transfer programme. Some FAQ’s are explained hereunder;
All existing Personal Loan holders who are running their personal loans successfully are eligible to apply for a balance Transfer. A minimum principal loan amount of 50,000 should be balance to apply for a balance transfer.
The total time taken from the time an application is submitted, till the old loan is closed could take a week to 10 days, so plan your balance transfer with enough time in hand before the next EMI of the previous hits the account.
The application for a Personal Loan Balance transfer will be processed by the Bank as for a fresh personal loan application, if it does not satisfy the terms & conditions as per the policy it may get rejected.
The request for a Balance Transfer is viewed as a fresh loan application. If the eligibility permits the applicant can request for tenure from 12 months up to 60 months, as per his ability to pay the EMI.
The Balance transfer of a Personal Loan is advantageous if it serves a specific need, or affects major savings. It is not always a good option, so do contact your loan advisors to give you a complete breakdown of the costs & savings before applying for a balance transfer.
Application for a Balance transfer can be forwarded to more than one Bank, but the same is not advisable as it can adversely affect your CIBIL score, so apply to a single Bank using our services to help you identify the right Bank fir the balance transfer of your Personal Loan.
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