Choosing a Balance Transfer of a Personal Loan is made to obtain a lower interest rate on an existing Personal Loan. Banks are willing to offer minimal interest rates to take over a Personal Loan with a good track record of timely repayments.

So, both the Bank and the applicant will benefit from this manoeuvre. The Bank will increase its book size with a profitable account, while the applicant will enjoy a reduced EMI.

What is a Personal Loan Top-Up?

A Personal Loan Top-up is an extra amount to be added to an existing loan. Rather than applying for a fresh loan, the applicant finds applying for the loan amount needed as a Top-up convenient. The amount approved is added to the principal amount of the existing loan, and a new loan account is structured with a fresh EMI.

How does a Personal Loan Top Up with a Balance Transfer work?

Applicants Applying for a Personal Balance Transfer can request additional funds or a Top-up. Prominent Banks, such as HDFC Bank, offer a Personal Loan Top-up with a Personal Loan Balance Transfer to HDFC Bank if the applicant fulfils the Top-up loan eligibility criteria.

The applicant must apply for the surplus amount required as a top-up with the application for a balance transfer. If the applicant is eligible for a Balance Transfer of a Personal Loan, the external Bank will check the top-up’s financial eligibility.

To be eligible for a Top-up Loan from HDFC Bank, other obligations such as Credit Card dues and EMI are being paid for different home loans, and auto loans are taken into account. The EMI for the personal loan after the Balance transfer is added to the other EMI paid the customer must be able to afford the surplus EMI after the budgetary demand for daily living expenses is met. To confirm the EMI, applicants can view our EMI Calculator before applying to check if the added obligation is affordable.

Once the Balance Transfer is approved, the Bank will consider the Top-up request and declare eligibility for the Top-up loan amount. The final loan will include the balance transfer amount with the Top-up a Banker’s cheque or draft is made for the Balance transfer amount, and the Top-up amount is credited directly to the customer’s account.

The loan amount’s EMI, including the Balance Transfer and Top-up, is presented to the applicant’s bank account for the tenure allotted.

Why Take a Top-up with a Balance Transfer?

If you require an additional Personal Loan amount, Applying for a Balance Transfer and a top-up together is the best deal, as it affects manifold savings.

Reduces Interest Rate: For a regular Personal Loan Top-up, the rate of interest applied will be at the rack rate or standard rate of interest applicable per the applicant’s profile, whereas the rate that will be for the top-up with the Balance Transfer is the lowest as per the market offering, which will considerably ease the monthly instalment being paid by the applicant.

Consistent Interest Rate: The interest rate for a Balance Transfer is fixed for all applicants, regardless of their net salary, current employer, or other factors considered while determining the interest rate and other terms and conditions. The interest rate applied after the balance transfer is 3 to 4% lower than the current rate. Moreover, the interest offer for the Balance Transfer will also apply to the additional loan amount applied for as a top-up!

Thus, the applicant will get the best interest rate possible, which is not available to him otherwise, for the current Personal Loan via a Balance Transfer, and an additional loan amount is required as a Top-up!

Ease of a Single EMI: Other advantages include the comfort of paying a single EMI for the total loan amount. Rather than following up on numerous EMIs, with a Top-up added to your balance transfer amount, you can fulfil the need for extra funds, get a discounted interest rate in a single process, and pay a consolidated instalment.

Facilitate additional financial eligibility with a Personal Loan Transfer to ICICI Bank, the applicant’s eligibility increases as the principal repaid to the parent Bank is deducted. Therefore, a customer can get the maximum loan amount as required. Additionally, with an extended tenure applied to the new loan clubbing, the Balance Transfer and Top Up will yield more incredible eligibility for Loan amount calculations.

If you are looking for a Personal Loan Balance Transfer, do not miss the opportunity to apply for an additional amount as a Top-up loan. With a single process, both the objectives of a Balance Transfer and Top are achieved. Contact us at Yourloanadvisors.com to help you make this profitable transaction!

The post Advantages of a Top up with the Balance Transfer of a Personal Loan first appeared on Yourloanadvisors.

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 Monthly Salary net amount credited to the bank should be above the minimum requirement as per the policy of the Bank.
• The Present Company with which the applicant is employed with should feature in the company listing approved for sourcing of Personal Loans.
• The CIBIL Score of the applicant is above the minimum benchmark required.
• The applicant is eligible for the loan amount required as per the Eligibility calculation of the Bank.

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:

• Documents to be submitted will include
  • Income Proof with Bank statement
  • KYC Documents
  • Details of existing Personal Loan with Track of repayment
  • All copies of documents to be self attested, it is preferable to hand over physically all documents rather than sending by email.

• CIBIL Enquiry

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.

• Verification (Concerned departments of the Bank will verify that;)
  • All documents which have been submitted to the Bank verified to be true copies.
  • The information given by the applicant in the application form is cross checked.
  • This includes details of previous & current employment.
  • A physical check will be conducted at the residence address.

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.

• Finally the Agreement to be signed & repatriation of Funds.

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 approved for balance transfer

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)

• Additional loan amount applied for by the customer will be approved as a fresh loan.
• The Tenure granted for pay back of the Loan amount.
• The Processing fees applicable

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.

• Disbursal of Funds.
• Hence forth a payout/bankers draft will be made for the same in the name of the previous Bank.
• The applicant is required to deposit the same & close the loan account.
• Any additional amount approved will be transferred directly to the customer’s Bank account.
• A consolidated EMI be presented to the applicants account hereafter as per the EMI date fixed.

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.

The post Steps You Need To Follow For a Balance Transfer of Your Personal Loan first appeared on Yourloanadvisors.

Prominent banks, such as HDFC Bank, offer numerous advantages to customers when they Balance Transfer a Personal Loan to HDFC Bank. These include:

To Lower the Current EMI

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.

A Reduced Interest Rate

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,

• Your principal loan amount for transfer is 313160.84.
• The interest rate offered is 11%.
• With a tenure of 48 months, your EMI will now be 8093.81.

What are the Costs Involved in the Transaction of Balance Transfer?

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:

• The personal loan amount Sanctioned ₹ 500000/—at an interest rate of 12%,
• The processing fee charged is 5000/-.
• With an EMI of 16607.15 for 36 months = 597852.

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:

• Amount repaid to the parent bank with interest = 249,105.
• Balance transfer amount: 313160.84.
• Processing fee: 5000/-
• Foreclosure charges: 9395/-
• EMI paid for 48 months: 388502.88

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.

In Conclusion

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.

The post Know The Savings & Cost Incurred From Balance Transfer of Your Personal Loan first appeared on Yourloanadvisors.

Demystifying the Personal Loan Balance Transfer

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:

Slash Your Interest Rates with a Personal Loan Balance Transfer

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.

For a Suitable EMI

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:

Consolidate all Your Personal Loans Under a Single EMI

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

Transfer your App Loan with a Personal Loan Balance Transfer

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.

Transfer the Dues of Your Credit Card

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.

Balance Transfer of your Home Loan

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.

Apply for a Top-up with a Balance Transfer

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 post Maximize Your Savings with Personal Loan Balance Transfer first appeared on Yourloanadvisors.