Balance transfer of a loan means approaching a bank and asking it to issue a loan amount that is the outstanding amount with the current bank, repaying to the current bank and continuing the loan with the new bank.
By taking a Balance Transfer of your Personal loan you not only save interest but you can also avail higher loan amounts.
The Balance Transfer programme has specifically been designed to reward customers who have paying their personal loan EMI promptly. Banks are happy to service customers with a good track of their Personal Loan; they are given the special privileges’.
So it is a good idea to take a Balance Transfer of your personal loan at least once during the tenure for the following reasons;
- Get a Reduced rate of Interest.
There is no reason for you to continue paying a High rate of Interest for your Personal Loan.
Banks proposing to take over your personal loan will offer a much lower rate of Interest.
Most Banks offer a rate of 2% less than the ongoing rate .Other aggressive Banks have offers, starting with 11;49% @ reducing balance onwards being offered for the balance transfer of your personal loan.
If you are employed with a company which is classified as non-listed or the take home salary is below 25k then the rate of Interest offered for a fresh Personal Loan can be steep;
A Balance transfer of your Personal Loan is the Answer.
- Make your EMI affordable.
By affecting a Balance Transfer you can adjust your monthly EMI to suit your Budget!
Repayment of the personal loan is done by paying the EMI (equated monthly instalment) which is presented to your Bank account at a fixed date.
This amount is calculated on the basis of the Principal Loan amount, tenure of the Loan & rate of Interest applicable.
A Balance transfer of your personal loan will lower the Rate of Interest & hence your EMI will be considerably lower than you would have been paying.
The Balance transfer of your Personal Loan will also give you a chance rework the Tenure of your loan.
If your Personal Loan with the External Bank has been granted for tenure of 36 months, applying for tenure of 48 or 60months will further reduce your EMI.
If you are comfortable with your budget, it will ensure that all your obligations are met in time.
- Apply for an additional amount (Top Up) with the Balance Transfer.
Already running a personal loan & additional funds are required then a Balance Transfer with a top up is the ideal solution;
Besides getting a lower rate on the previous Personal Loan, the additional amount will also be disbursed at the same rate.
The ROI of 11.49% will not be available to you if you apply for a fresh loan, or even a regular top-up.
- Consolidate all Personal loans under a single EMI.
Keeping a track of too many EMI’s can be tiresome, in case you miss out on a single EMI the repercussions can be grave.
So save the hassle of paying varied EMI, s at different rates &at different dates during the month by applying for a Balance Transfer of your Personal Loans to club them together under a single Personal loan.
If there are more than one Personal Loans running currently then it is wise to take a Balance Transfer for all these Personal Loans simultaneously.
With this manoeuvre you will reap the benefit of having to pay only one EMI with a reduced rate of Interest for all your Loans.
Personal Loans from more than one Bank can also be clubbed together under the Balance transfer programme.
- Create additional Eligibility to apply for your Home Loan.
Need to apply for a Home Loan? Your application may not be considered if the EMI being paid for your current Personal Loans is too high.
Your income with the current obligations may not meet Financial Eligibility criteria as required by the Bank.
First take a Balance transfer of your Personal Loan, which will lower your interest rate & also give you the opportunity to adjust your EMI.
You are now eligible to apply for the finances required!
Please contact us if you need to further understand the nuances of the “Personal Loan Balance Transfer Programme”.
We at http://www.yourloanadvisors.com are available to help you & provide doorstep assistance to make your “Balance Transfer” Of your Personal Loan a sooth & profitable experience.