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It is not mandatory that an application for a Personal Loan Balance Transfer will be approved thus We Yourloanadvisors.com would like to inform our valued customers regarding the Balance Transfer process for their Personal Loan so that their experience will be a smooth one.
Having taken the decision to apply for the Balance Transfer of an existing personal loan an applicant should be aware of all the terms & conditions that are required for the successful balance transfer of the current Personal Loan. Most importantly the current Personal Loan should be eligible for a Balance Transfer.
The Basic Process & stages for the Balance Transfer of a Personal Loan are similar to that Fresh Personal Loan.
The variables being that better terms & conditions are offered by Banks for the Balance Transfer of an existing Personal Loan.
It is primarily important for the Balance Transfer aspirant to calculate the benefits being achieved by the balance transfer, as compared to his current financial obligations & to ascertain the offerings of the Bank with regards to the final terms & conditions applicable.
After identifying the Bank offering to complete the objective, the applicant needs to confirm that her/his Personal & Professional profile is acceptable to the receiving Bank as per the existing terms & conditions. The policy of the Criteria of the corresponding Bank should be met with;
The criterion for eligibility includes the following:
The next step is to forward an application to the Bank identified for the process of Balance Transfer.
This process is initiated by Submission of Documents for Processing;
The Bank will then initiate a CIBIL enquiry to ascertain the CIBIL Score of the Applicant & obtain a credit history, which shows the credit worthiness of the applicant.
The record of all payments made for Loans & credit cards will reflect in the credit history.
An on time payment cycle will ensure an approval of the current loan request.
The CIBIL Score being above the required benchmark the application is forwarded for verification.
The verification process being satisfactory the application reaches the desk of an Underwriter who checks that the application meets all parameters of the Bank policy & subsequently approves or declines the balance transfer request.
The Applicant is further informed about the decision of his request.
Once a statuary approval of the loan request is received the applicant is informed about the details of the loan pertaining to;
The Loan amount for balance transfer will be calculated as per the personal loan track submitted. (The principal of the personal loan amount balance will taken as the amount for balance transfer)
The applicant being agreeable to proceed with the Loan an agreement is signed between the applicant & Bank. The agreement details all salient features of the Personal Loan thus appended,
The applicant will be required to submit security cheques as per the policy of the Bank.
We at Yourloanadvisors.com have an unmatched experience of helping our customers successfully Balance Transfer their Personal Loan.
Giving our esteemed customers a personalized advice & a realistic view on the implications of the Balance Transfer we offer end to end services for the same.
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A Personal Loan is a popular choice for obtaining financial assistance. However, it’s important to note that maintaining a good track record and a sufficient Credit Score is crucial when Applying for a Balance Transfer of your Current Personal Loan.
Prominent banks, such as HDFC Bank, offer numerous advantages to customers when they Balance Transfer a Personal Loan to HDFC Bank. These include:
With a balance transfer of your loan to an alternate lender, you can get a lower interest rate and an extended tenure with a lower EMI, which provides significant relief and makes your expenses more manageable.
If the interest rate for a Personal Loan is higher than the current industry offering, the interest rate offered with a Balance Transfer to HDFC Bank is 10.85%.
Additional Funds Offered as a Top-Up with a Balance Transfer: If additional funds are required, an applicant can apply for a Personal loan Top-up with a Balance Transfer. HDFC Bank’s Personal Loan Top-up with a Balance transfer is offered at a minimal rate of 10.85%.
Increase Eligibility for an Additional Loan Amount: A Balance transfer allows an applicant to apply for additional funds as a top-up or a mortgage, as the principal amount of the existing loan is deducted, creating additional eligibility.
Although a Personal Loan Balance Transfer is beneficial, comparing the costs and savings will help you decide whether going ahead will help you reduce costs. Below is an example to enlighten our customers about the facts and the financial implications.
Cost Details with an Example of a Personal Loan Balance Transfer:
For instance, if you’re currently paying an EMI of ₹ 16607/—@ 12% for a loan amount of ₹500000/—, with a tenure of 36 months, and find it challenging to manage your monthly expenses, a Personal Loan Balance transfer could be a welcome relief. This service allows you to reduce your monthly EMI, making it more manageable and easing your financial stress.
Assuming you have paid 15 instalments of your existing loan. If you Apply for a Personal Loan Balance Transfer to ICICI Bank,
With the successful Balance Transfer of your loan, you can get a suitable EMI, but what are the financial implications of the transaction? Are you going to save money, or will the loan costs escalate? Check out the example below to understand the facts.
If the Personal Loan was Repaid without a Balance Transfer, the Total Cost Affected will be as follows:
If the applicant were to repay the loan over 36 months, the total cost of the loan would be 597852+5000/—= 602852.
The cost of a Personal loan of ₹ 500000/- with the Balance transfer is as follows:
The loan cost with a Balance transfer is 652003/-;
The total cost of the loan will increase due to the basic charges and the extended tenure. Is it advisable to take a Personal Loan Balance Transfer? The answer lies in the loan status and the applicant’s requirements.
When is the Best Time to Seek a Personal Loan Balance Transfer?
The Balance Transfer programme is advantageous in specific circumstances. It will help save costs and help an applicant maintain a good CIBIL record.
At the Start of a Loan Tenure: A Personal Loan Balance Transfer affected at the beginning of a Personal Loan Tenure works best cost-wise. Once the minimum number of EMI is paid and the parent bank allows the transfer, the minimum interest has been paid, and the applicant can get a lower interest rate for the balance loan amount.
There is a Possibility of Default: If there is a shortage of funds and the applicant cannot pay the EMI on time, Applying for a Balance Transfer in advance works well. The return or instalment bounce will always be reflected in the credit history, and if not paid within 30 days, it will bring down the Credit Score. Therefore, planning your finances and keeping up your commitments is advisable. A balance transfer will help reduce the current debt and boost finances.
To Apply for a Home Loan: If your home loan request is not approved, the current credit you take exhausts your financial eligibility, and the bank declares you as being overleveraged. Before Applying for a Home Loan, consider Applying for a Balance Transfer to consolidate your current Personal Loan and Credit Card dues. Use our EMI Calculator to work out a suitable EMI. With a Balance Transfer, the monthly outgoings are reduced, which makes room for payment of the Home Loan EMI.
Transfer of Credit Card Dues: Overdue payments of a Credit Card attract an exorbitant interest rate of 36% per annum. If you feel burdened by your current expenses, Apply for a Balance Transfer of your Credit Card dues to a Personal for a convenient repayment option.
With a Balance Transfer of a Personal Loan, an applicant can re-invent a Personal Loan according to the best terms and conditions prevailing. In some situations, the total costs of a Balance Transfer may exceed the current Personal Loan. Alternatively, applicants can get surplus funds at a lower rate with a Personal Loan Top-up and a Balance Transfer. It is an excellent decision to Apply for a Balance Transfer rather than default on your credit repayments.
We have attempted to provide a holistic view of the financial aspects of a Personal Loan Balance Transfer, including the pros and cons, to help our customers decide.
A Personal Loan is a convenient way to borrow funds. It is meant to be used for Personal requirements or emergencies and not for investment or business purposes.
For a Personal Loan, funds are granted without giving any security or collateral. Since there is no garuntee requirement, it is of prime important for the Lending Bank or NBFC to ascertain the purpose, or the end use for the funds.
It is the responsibility of the borrower to use the funds in an appropriate manner as specified while taking the loan and to return the Loan amount as per the agreed terms and conditions.
It is essential to maintain a timely repayment of the at all costs. Any delay or default can lead extra charges being imposed. Furthermore, a poor repayment track or credit history will make it difficult for the borrower to get any more funds if required in the future.
We are blessed with a rich heritage of family ties & traditions. Each special occasion is celebrated in a befitting manner. May it be a Wedding in the family, religious festivities, moving to a new home or welcoming a new born.
Banks are willing to issue a Personal Loan to contribute towards funds required to make the celebration a memorable one.
Young salaried individuals, who are willing to share the responsibility of parents, can also apply for a Personal Loan to contribute towards expenses incurred for their wedding or family function.
We always wish our family members maintain good health, have a safe & secure life. We always wish our loved ones remain healthy & safe. But it is important to have funds available in hand to face any medical emergency which can come without a prior warning.
Help is there at hand via a Personal Loan. It serves as a backup plan to successfully combat expense arising from a sudden illness.
Though medical insurance plans help us to cover medical expenses, one may need extra funds to pay initial bills for medication and overhead expenses. Banks are ready to provide a personal loan to cover medical expenses.
For the previous generations holidays or vacations meant a visit to your ancestral home, going to visit Grandparents or getting together in an Uncle or Aunts house which was in another city.
Visits to hill stations were the most popular event during summer holidays. Family cars & state buses were the most popular mode of transport.
The idea of a family holiday has changed a long way since. Travel to new and exotic destinations within the country and abroad are most popular. New dimensions have been added to the idea of travel, such taking a cruise on a luxury liner, visiting venues offering adventure sports, or just going to places that offer fashionable shopping experiences and exploring ancient historical sites.
If you do not enough savings to afford your family the much needed break, getting extra funds via a Personal Loan is a cheap and convenient way to spend time with your loved ones and giving them a dream holiday!
A good education is the foundation for a secure future.
Parents aspire to give their children the best education, dream of getting their child admitted to premier institutes of the country, or sending them overseas.
Education is now privatized and has become a booming industry. Starting from play school to Professional degrees various options are available. Educational Institutions are now replete with a state of art facilities. Getting admission to a premier institution is a mammoth task. The costs of admissions and monthly fees have now increased tremendously. Taking a Personal Loan can help you to face initial costs and stabilize the monthly budget. Though education loans are available for professional studies they come with riders and do not cover all degrees. It may become pertinent to take a loan at this juncture to give your child a good start in life.
A home is an extension of oneself. It is a haven which we share with our family, where we can relax completely and rejuvenate ourselves. Giving your family the comforts they need by providing all the amenities of a modern home gives one an immense satisfaction.
Home renovation can be funded by Banks via a Personal Loan. So one can go ahead to decorate and furnish your home to make it comfortable, beautiful a home of your dreams.
Holding a Credit Card is an essential demand of a lifestyle today.
Banks are eager to sell cards to all customers eligible as per the salary bracket required. A freshly employed candidate will look forward to his first credit card, while Banks are keen to sell additional cards to vintage card users. A credit card is undoubtedly an asset: it is plastic money which can cover your expense. Fashionable and convenient to use, also it can save the day when finance is required for medical or other emergencies.
Paying the monthly dues of your Credit Card promptly on the due date is mandatory. Delayed payment can lead to extra charges; the rate of interest charged by banks on unpaid dues is 36% per annum.
Spending on a credit card is easy but if the payment discipline is not maintained it can lead heavy charges being imposed. By putting off payment to the next cycle by paying just the minimum balance can lead to a vicious debt cycle.
At this juncture it is best to convert your Credit Card debt into a Personal Loan.
The external bank will pay your Credit Card Bill and convert the paid amount into Personal Loan. The Personal Loan EMI can then be spread over 5 years and the rate of Interest will be half of what you have been paying!
The electronics industry has taken the world by storm. It has become a matter of self esteem to own the latest edition of the Mobile Phone, Computer, Tablet, Television and so on. Whether it is a work requirement or a hobby the desire to own the latest Gismo is all consuming.
A Personal Loan is available to purchase the latest gadget for one self or to gift a loved one. Paying back the amount via an affordable EMI will not upset your monthly budget.
In the following Scenarios, banks would be likely to reject the Application of a Personal Loan: If the End use is for any of the following reasons;
The Personal Loan is a product to provide funds meant strictly for personal uses. Personal Loan for salaried personnel does not allow usage of funds for investment or starting a new business venture. As the risk factor is high in such investments is high, this can further lead to losses and repayment of the loan amount can be delayed.
So to enjoy the facilities provided by a Personal Loan it is advisable to plan your budget and maintain a healthy repayment record.
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A Credit Card is a plastic card issued by a financial institution like a bank. The Credit Card allows the holder to avail credit on behalf of the issuing authority. The payment to the seller is made on behalf of the customer by issuing Financial Institution.
The Credit Card holder pays back the Financial Institution on a regular basis or as per the Credit terms and conditions agreed upon.
With the importance being given to cashless transactions holding a Credit Card has become a norm.
A Credit Card can be used for a variety of financial transactions.
• It Can Be Used To Pay For Shopping In Merchant Outlets.
• For Fine Dining In Restaurants & Stay in Hotels.
• For Online Transactions.
• To Pay Utility Bills.
• Medical Expenses & Hospital Bills.
• To Buy Airline Or Railway Tickets
• Cash Withdrawal For Emergencies
The Credit Limit of a Credit Card is the amount of credit the card holder can avail on behalf of the issuer.
This limit is decided by the Financial Institution which has issued the Card. The maximum Limit or the amount of credit that can be availed on a Credit Card remains fixed till revised.
The Credit Limit is further segregated into the Credit Limit and Cash limit.
The Credit Card holder has the facility of withdrawing Cash with his/her Credit Card.
The Cash needed can be withdrawn from an ATM machine using the Credit Card pin.
The Cash Limit is up to 40% of the Total Credit Limit allowed. The Card holder needs to be aware that the interest of36% will be charged to the Credit Card account from the very day the amount is withdrawn.
There is no Credit Free Period available for the withdrawal of Cash with your Credit Card.
It is important to be conscious of the amount you are spending using your Credit Card.The usage of the Cash withdrawal facility should specially be restricted as the Interest on cash drawn starts from the day the cash is used. The statement for the transactions, of the amount of Credit you have availed is generated after 30 days.
The 30 days start from the date on which on which you first swipe or use your Credit Card. This statement is then sent via email or physically posted to your address.
A grace period of 15 to 20 days is given to make the payment.This period of 35 to 40 days is known as the Credit Free Period.
Credit Card users are expected to pay their dues by or before the specified due date. Payment can be made via cheque or transferred digitally.
If one is not able to clear the total amount as reflected in the statement, the unpaid balance of the statement will then get transferred to the next Billing Cycle.
An interest rate of 36% per annum will be charged on the same.
If there is a financial constraint & the Card holder is not able to pay the total dues, then he should at least pay the Minimum Dues.
The minimum payment as specified on the Credit Card statement is 5% of the total amount spent via the Credit Card. Paying this amount is mandatory.If this amount is not paid then late payment charges of 250/-will be charged on the next statement.
If the expenditure of your Credit Card are justified & expenses are planned then carrying forward the payment is legitimate. But if the usage has been beyond the pay back capacity, then the recycling of the payment amount you owe can have the following repercussions.
• An Interest rate of 36 % per annum will be charged on the total statement of the next billing cycle.
• If a minimum balance is being paid the principal amount due will remain the same as the amount paid will go towards the interest due. As a result the one can get into a vicious debt cycle.
• The CIBIL Score of the will be impacted negatively.
• Eligibility to apply for any other financial product will be affected.
• Create Undue stress & burden for the Card holder.
• The only answer is to somehow arrange funds as a priority to clear the Credit Card Debt.
One option to clear the Credit Card Debt is to avail a Balance Transfer. To know more about a Balance Transfer, read our blog here.
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When faced with unforeseen expenditures or simply a shortage of funds, applying for a Personal Loan is the best option.
Questions such as which bank should one apply to? Which will give you the desired loan amount at the best rate possible? And who will service our needs without any delays?
All banks look to fund customers with a steady profile & financial stability. This is to ensure that the loan gets repaid with the due interest, in the stipulated period of time.
Though the basic fundamentals of a Personal Loan remain the same, enumerated below are the key points which will help you decide the most suitable bank to Apply for your Personal Loan.
Banks & NBFC’s have a list of preferred companies & Personal Loans are provided majorly
For employees of companies that feature on their list. For easy funding, it would help to choose a bank with which your company is approved.
The monthly net income credited to your bank account should be above the minimum net income criteria required as per the policy of the bank. Your Application for a Personal Loan will only get accepted for processing if the net monthly income is documented in the salary slip & bank statement. Banks may have a lower minimum policy for salary account holders, and employees of preferred companies.
Much emphasis is paid by each bank to the customer’s profile as Personal Loans are completely unsecured loans – without any collateral. All banks & financial institutions have done an individual research to narrow down on the customer segment that they find suitable for funding a Personal Loan. Major factors contributing to a profile check include:
If an applicant is married & living with her/his spouse or is residing with other family members, it is a favorable scenario for banks to fund loans. Some Banks will not fund Bachelors or applicants who are living alone.
Graduation is the minimum basic degree required for most institutions for funding Personal Loans. Since higher education & professional degrees merit their due recognition, special rates & offers are given to well qualify applicants.
Check before applying to the bank for a Personal Loan – Only if your residence location is within their verification jurisdiction, then your application will be considered.
It is important to check all options available before Applying for a Personal Loan as applying to a bank which does not process your loan as per your requirements can lead to an unsatisfactory experience.
We at Your Loan Advisors take pride in providing personalized services to guide our customers, achieve their Personal Loan requirements from the bank that will service their needs the best!
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A Personal Loan Top-Up and a Parallel Loan are concepts of a Personal Loan with diverse features suited to individual needs. Customers with additional Loan requirements can Apply for a top-up as an addition to the existing Loan or a secondary Personal Loan as a Parallel Loan. Major Banks today, HDFC Bank, ICICI Bank, AXIS Bank and YES Bank, offer their customers a choice of Applying for a Top-Up or a secondary loan.
A Top-up is an addition to an existing loan with a particular financer. Individuals can ask for further amounts when required as a top to the current Personal Loan.
In contrast, a Parallel Loan is a secondary loan issued independently an applicant can apply for additional sums to the same or an alternate lender as a Parallel Loan.
Though a Parallel Loan or a Top-up both look to fulfil similar financial requirements for personal needs, the implications vary; here is a brief as to under which circumstance a Top-Up or a Parallel Personal loan is considered more favourable.
A lender is happy to extend further credit to a customer with an on-time payment record a Top-Up Personal loan is beneficial under the following circumstances:
For Emergency requirements: The Top-Up is preferable when an existing loan holder requires funds in an emergency. As the customer details are previously verified, expediting the stages for processing with quick disbursal of funds.
The Convenience of a single EMI: With a Top-Up amount added to the existing Loan, the applicant can pay a single instalment for the complete loan amount, saving the applicant the hassle of keeping track of an additional loan and EMI.
For additional eligibility: With a Personal Loan top-up, an applicant’s eligibility for the loan amount increases, as the principal amount repaid is considered when sanctioning the amount. Thus, applying for a top-up is better if an extra amount is required.
For a suitable Tenure: if the applicant feels an additional EMI is a burden on the budget and needs an extended tenure to repay the Loan. With a top-up and the loan schedule being restructured, an applicant can choose a tenure that gives easy repayment terms.
For smaller loan amounts: Applying for a Parallel Loan is advisable when smaller sums are needed as a parallel or a secondary loan can be paid back independently within a quicker term. Thus, the customer saves on costs involved in restructuring a Top-up loan.
More suitable terms: With a parallel loan, an applicant also has a choice to survey the options available from lenders offering better terms for a Personal Loan. An alternate lender may provide a lower interest rate for a parallel loan than a Top-Up.
Lock-in period: A loan holder must pay at least 12 instalments to Foreclose a Personal Loan and repay the amount. With a parallel loan, the customer can repay the amount borrowed independently after fulfilling the pre-closure clause.
Vintage of the existing Personal Loan: Most Banks grant extra funds as a Personal Loan Top-Up after three months. An individual can meet unexpected expenses via a parallel loan from another bank an amount is given without any lien to the issue of the existing Loan.
Savings on Restructuring: With extra funds added as a Top-Up, the existing Loan is restructured, and a new repayment schedule is issued to the applicant for the principal balance and Top-Up amount. The new amortisation schedule will not account for the previously paid interest. Thus, a Parallel loan saves you the extra interest.
The essential customer criteria for a Top-Up and Parallel Personal Loan are similar, as they are variations of the same product. To be eligible, a customer should fulfil the following criteria.
Current Profile: The Top-up Loan and a Parallel loan will be issued based on the customer’s existing profile. The employer should feature in the company category list of the Bank, and if there is a change the applicant’s current profile will be considered for the eligibility of a Top-Up or a Parallel Loan.
Stability of job and income: The applicant should have a consistent income since they acquired the previous Loan a salary increase will enhance the Top-Up and parallel loan possibilities. A regular income with a steady job is the basis for a stable lifestyle; any untoward circumstance leading to loss of employment can challenge meeting the monthly budget. Thus, the lender wants to ensure a vintage of employment before issuing further funds.
A timely repayment track of the existing Personal Loan: The unsecured nature of a Personal loan makes it susceptible to defaults and delays in payments therefore, before being issued further credit, the applicant must prove the ability and intentions for making the repayment as per schedule. Any bounces or unpaid returns of the EMI in the existing personal loan tract will mar the chances of a further loan.
Financial eligibility and CIBIL: All the existing obligations, such as the applicant’s credit cards and other loans, are considered. The CIBIL Score of the applicant should be above 720 points; all credit taken must be a clear repayment record with no outstanding dues. The income in hand or the net monthly salary must support all the outgoings and allow an extra EMI to be added to the fresh loan amount.
Recent Credit Issue: Lenders are wary of clients appending too much credit and need help to handle the same. Banks prefer to give a gap of three to six months before issuing further amounts as a Top-Up or a Parallel Personal Loan to enable learning of the customers’ repayment behaviour. This policy is more relevant to first-time loan seekers or has a higher outgoing ratio than the monthly income.
As the loan amount approved as a Top-Up is merged with the existing Loan to complete the disbursal, the previous account is closed, and a new Personal loan comes into existence with the principal balance of the current Loan and the amount approved as a Top-Up. With the transfer of the Top-up to the customer account, a new EMI is presented to the customer’s Bank account.
The customers’ situation influences the decision to Apply for a Parallel Loan or a Top-up and need there is also a choice factor; some individuals may prefer to stay with their original lender with whom they feel a sense of comfort and confidence while others may like to try an alternate lender and are more focused on the cost and time factor.
In either situation, we hope the content above will clarify to our esteemed clients whether a Top-Up or a Parallel Personal Loan will serve their needs better.
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The Balance Transfer programme has been introduced by Banks in a bid to increase their Personal Loan Portfolio, by taking over the existing Loans running with competition;
Better rates & terms are offered to lure customers who are successfully paying back their Loans. With this man oeuvre the Banks are assured of profitable business, whereas the customer is able to get better rate of Interest.
Before applying for a Balance Transfer the following Terms & Conditions of the Existing Personal Loan need to be checked-Your existing personal loan is bound by terms & conditions which can affect your transfer decision.
MAJOR TERMS & CONDITIONS THAT AFFECT THE CLOSURE OF YOUR EXISTING PERSONAL LOAN INCLUDE-
When applying for a Balance Transfer of a Personal Loan, be aware that there can be a charge applicable by the Parent Bank for closure of the existing personal loan.
Penalty charges for closure of your Personal Loan before the tenure expires vary according to the stipulated policy of the Lending Banks & can range from nil up to 6%.
This charge will be levied on the outstanding Principal Balance of the personal loan.
It is prudent to be aware of the financial implications of paying a closure charge while applying for a fresh personal loan or taking a transfer.
It is an ideal situation if no charges have to be paid to the parent Bank, but sometimes affecting a Balance Transfer even after incurring charges for pre closure may be profitable.
There is no uniform policy for Closing or paying back your personal loan before the expiry of the total term for which the loan is taken. Each Bank/NBFC has put forth its own clause. Given below is a list of Pre closure charges of various Banks & NBFC’S.
| INSTITUTION NAME | PRECLOSURE CHARGES APPLICABLE |
| HDFC BANK | 4% |
| ICICI BANK | 5% |
| AXIS BANK | NIL |
| KOTAK MAHINDRA BANK | 6% |
| CITI BANK | 2% |
| STANDARD CHARTERED BANK | 4% |
| FULLERTON INDIA | 6% |
| BAJAJ FINSERV | NIL |
| INDUS IND BANK | 4% |
A Lock in period is the mandatory time stipulated by the Lending Institution for paying of interest on the Loan Amount.
The Institute lending the Loan amount is inclined to recover a minimum interest amount before allowing the customer to return the balance of the loan amount & close the loan.
Attention should be paid to the Lock in period clause while signing the agreement for your Personal Loan.
The lock in period clause is not constant across the industry. Some institutions allow the customer to pay back the loan amount, after paying the first EMI, while other Banks have a Lock in period for 12 months.
| INSTITUTION NAME | LOCK IN PERIOD |
| HDFC BANK | 12 MONTHS |
| ICICI BANK | 6 MONTHS |
| AXIS BANK | NIL |
| KOTAK MAHINDRA BANK | 12 MONTHS |
| CITI BANK | 6 MONTHS |
| STANDARD CHARTERED BANK | 6 MONTHS |
| FULLERTON INDIA | 6 M0NTHS |
| BAJAJ FINSERV | NIL |
| INDUS IND BANK | 12 MONTHS |
A minimum number of EMI’s of the existing personal loan need to be paid before the corresponding Bank will accept your request for a Balance Transfer.
Given Below are the details of the various Banks pertaining to number of EMI’s that need to be paid before acceptance of your application for Balance Transfer.
| FINANCIAL INSTITUTE | NOS OF INSTALLMENTS |
| HDFC BANK | 1 EMI |
| ICICI BANK | 12 EMI’S |
| KOTAK MAHINDRA | 6 EMI’S |
| CITI BANK | 6 EMI’S |
| AXIS BANK | 6 EMI’S |
| BAJAJ FINSERV | 6 EMI’S |
Balance Transfer of your Personal Loan will be successfully done if the emi’s of all previous payments have been cleared on time.
Any bounces or delayed payments will always reflect on the payment record, one or two late payments over a year can be overlooked but a string of late payments will be considered as a will full default. It might be prudent to stay with the parent Bank if there have been delays in repayment. The Bank taking over your personal loan will do so only after checking your previous track record & CIBIL Score.
Apply for the Balance Transfer of your personal only after paying heed to the above clauses; always remember that every time an application is submitted to the Bank it will affect your CIBIL Score. We at Yourloanadvisors.com are always ready to guide our customers for the Best Balance Transfer deals available for your existing Personal Loan.
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NEW DELHI: “The Reserve Bank of India (RBI) on Tuesday cut the short-term lending rate, or repo rate, by 25 basis points to 6.25 per cent from 6.50 per cent earlier.
The fresh repo rate cut has resulted in a cumulative 175 basis points drop in policy rate since January 2015.
This was the first exercise by the monetary policy committee (MPC), chaired by Governor Urjit Patel. All the six committee members voted in favour of the monetary policy decision. The minutes of the MPC’s meeting will be published on October 18.
The policy rate in India has averaged 6.70 per cent from 2000 until 2016. MPC noted that the recent sharp drop in inflation reflects a downward shift in the momentum of food inflation – which holds the key to future inflation outcomes – rather than merely the statistical effects of a favourable base effect.
A total of 14 of the 18 banks and financial institutions polled by ET last week were expecting RBI to cut policy rate. The announcement has come in the wake of the recent easing of inflation within RBI’s comfort zone of 4 per cent, plus/minus 2 per cent.
Retail inflation, a key factor that the central bank considers before deciding policy rates, stood at 5.05 per cent in August, the lowest in six months.
“The committee expects that the strong improvement in sowing, along with supply management measures, will improve the food inflation outlook. It notes that the sharp drop in inflation reflects a downward shift in the momentum of food inflation – which holds the key to future inflation outcomes – rather than merely the statistical effects of a favourable base effect,” said RBI in a statement.
The central bank has maintained status quo on cash reserve ratio (CRR), which stands at 4 per cent while statutory liquidity ratio (SLR) remained unchanged at 20.75 per cent. The marginal Standing Facility (MSF) rate, meanwhile, has been adjusted to 6.75 per cent from 7 per cent earlier.
Following the development the BSE Sensex, which was trading flat, spiked over 100 points. However, the index could not hold the gains and soon retreated. Sensex closed the day at 28,334, up 91 points, or 0.32 per cent. The Nifty50 reclaimed 8,750 level to eventually end the day at 8,769.
Ajay Bodke, CEO and Chief Portfolio Manager for PMS at Prabhudas Lilladher, said he expects the policy rate to come down by at least 50 basis points over the next six months.
Radhika Rao, India Economist at DBS, said given that India would see FCNR redemptions in October-November, the forthcoming US election and a possible Fed rate hike in December, Tuesday was the best chance for RBI to move on policy rate.
“The central bank had room to cut rates, even if these kinds of risks are in the horizon. I think the differentials are still pretty much in our favour,” Rao had said. Interest-sensitive stocks from banking, auto and real estate and shares of consumption-related stocks jumped following the announcement.
The RBI retained its real gross value added (GVA) forecast for 2016-17 at 7.6 per cent, saying risks are evenly balanced around it.
The next meeting of the MPC is scheduled on December 6 and 7, 2016 and its resolution will be announced on December 7.
Is the EMI of your Personal Loan straining your budget? Do you think your Personal loan Interest Rate is higher than the current rate? Restructuring your loan with the Balance Transfer to an alternate lender is convenient. With the Balance Transfer of the principal balance of your loan amount, you can get a lower interest rate with a suitable EMI.
A Balance Transfer enables an individual to shift the outstanding principal amount of their existing loan to a different lender. This program is designed to incentivise customers who consistently make their Personal Loan EMI payments on time. Banks offer the lowest interest rates and favourable terms to eligible customers who transfer their loan balance. Individuals with an existing Personal Loan can benefit significantly from a Balance Transfer. Here are the key reasons to consider applying for it:
Lenders offer the best terms to applicants for taking over a Personal Loan, keeping in mind that the customer is paying the EMI on time and will benefit the bank further by maintaining an assured repayment track.
The interest rate offered by leading Banks such as HDFC Bank and ICICI Bank for the Balance Transfer of a Personal Loan is 10.85%, which is the rate provided to elite customers who apply for ₹ 10 Lakhs or more. Other banks, such as Axis Bank, offer to reduce the existing Interest Rate of Personal Loans by 2% or more.
The minimal interest rate offered for a Balance Transfer is to attract sound customers who will increase the Bank’s profitability.
The monthly instalment for your Personal loan is deducted from your salary account on a fixed date. Ensuring sufficient balance in the account to honour the EMI is vital. There could be budgetary restrictions if the monthly earnings are inadequate to meet sudden expenses. Opting for the Balance Transfer of Your Personal Loan will help reduce your monthly EMI.
Your loan balance is reduced because you have already repaid part of the principal. After a balance transfer, a new loan is structured with a reduced amount, a lower interest rate, and an extendable tenure; thus, the applicant can get a lower EMI.
Listed below is the example depicting a reduced EMI after the Balance transfer.
Original Loan Amount: ₹ 500000 Lakhs.
Current Principal Outstanding After 15 EMI: 370505.
After a Transfer:
| Interest Rate | Tenure | EMI | |||
| Existing Interest rate | 13% | 48 months | 13413.75 | ||
| Post Balance transfer | 10.85% | 60 months | 8028.1 |
Managing multiple Personal Loans and their respective EMI dates can be overwhelming. However, with HDFC Bank Balance Transfer, you can consolidate all your loans under a single EMI, bringing a sense of organisation and control to your financial management.
When you use a Balance Transfer, you can calculate and consolidate the total money owed on all your loans. Even if the loans have different interest rates, a Balance Transfer allows you to apply a single, consistent, lower interest rate, making it easier to manage. This means you’ll make a single monthly payment and save money on interest.
Below is an example of 2 Personal Loans clubbing together with a Balance Transfer.
(Personal Loan-1) EMI for ₹ 500000 @ 12% for 36 months = 16607.15
(Personal Loan-2) EMI for ₹ 200000 @ 13% for 24 months. = 9508.3
(Personal Loan-1) Principal Balance after 15 months=313160.84
(Personal Loan-2) Principal Balance of Loan after 13 months= 98100.96
The principal balance of both loans for transfer= 322669.2
Reduced EMI after Balance transfer @ interest rate of 11% for a tenure of 48 months=8339.55
App loans are tempting because they offer immediate funding but attract a higher interest rate; as the tenure is restricted, the Emi is inflated. A third party finances Application Loans, and customers running an App loan can find it challenging to reach the original lender in case of any issues.
Axis Finance, a subsidiary of AXIS Bank, permits customers to transfer the existing dues of an App loan as a Personal Loan Balance Transfer. The App loan details can be included with the existing Personal Loan Application for a Balance Transfer To Axis Finance. The loan amount can be repaid conveniently with a reasonable interest rate and a suitable tenure.
If you cannot pay your current credit card bill and transfer the outstanding amount to the next cycle, the excessive interest charged on the balance can lead to mounting credit card overdue and a debt cycle. Unpaid credit card bills attract an interest rate of 36% per annum, which is double the interest you would pay for a Personal Loan. Paying the minimum due, 5% of the bill, on the due date is mandatory. Otherwise, further penalties are imposed. Once the dues mount up due to the interest levied, cardholders find themselves in a tight spot, leading to delayed payments and penalties. The credit score is also affected thus, Apply for a Balance Transfer of Your Credit Card dues before the HDFC Bank rejects your request because the eligibility criteria are unmet.
Take timely action by transferring your Personal Loan dues via a Balance Transfer to HDFC Bank. HDFC Bank will pay your outstanding dues to the Credit Card lender, which can be paid back with a suitable EMI.
Interest on a mortgage is applied as a floating rate, which is governed by fluctuations in the prime lending rate of the RBI (Reserve Bank of India). If your Lender offers you higher interest than the current rate applicable and does not promptly provide you with the benefits of a lower PLR, apply for a Balance transfer of your Home Loan to a more transparent bank. With a balance transfer of your home loan, you can get a lower EMI and choose a suitable tenure for repayment.
Surplus funds as a Personal Loan Top-up are available with the Balance Transfer of your loan. The funds approved as a Top-up are transferred to the applicant’s account with the principal balance of the existing loan. Thus, the applicant can receive extra funds at the same lowered rate affected by a balance transfer.
Transferring your Personal Loan, Credit Card, and app loan dues can potentially increase your Loan Eligibility, bringing hope and optimism to your aspirations for home ownership. Review your Personal Loan Eligibility before applying with our Personal Loan EMI Calculator.
Customers can review the terms for ICICI Bank Balance Transfer, Axis Personal Loan Transfer, and HDFC Personal Loan Balance Transfer programmes to determine the best Lender for their Personal Loan Balance Transfer.
This is an ideal scenario for an applicant who can consolidate the existing loans and obtain funds at a lower interest rate. If you are unsatisfied with your existing Personal Loan terms, opt for a transfer for benefits.
The Digital World has invaded all aspects of our lives. The Internet caters to most of our needs, from Groceries to a Life Partner or a Personal Loan.
Banks like other companies advertise their products aggressively on the Web to reach customers. Your search for a Personal Loan on the web will reward you with views like “Instant Personal Loan” or “Personal Loan in 2 minutes” These offers seem especially attractive if the need for funds is immediate. But Alas! There is no Bank or Agency which can release funds for a Personal Loan in the time frame implied.
We at Your Loan Advisors, in keeping with our policy of complete transparency are here to explain to you the true implications.
On filling your details on the Online Personal Loan form the following happens:
It is important to remember that only after the requisite documents are collected & the Form for Personal Loan is signed & submitted to the Bank, that the Processing of the Application actually begins.
After receiving the Personal Loan Application, there are definite procedure & guidelines that are streamlined by Banks for processing. Finally it goes to the Underwriter for the decision. Only after the Approval an agreement is signed, and here after the funds are disbursed.
Banks now have procedures firmly in place to decision the Application & release funds in up to 72 hours. Technology for the finance industry will need greater advancement before Banks are ready to approve a Personal Loan Online or in” 5 Minutes”
Yet A Personal Loan is still one of the fastest ways to generate funds!
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