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  • Personal Loan Balance Transfer is Rated as "Great!" by 97304 Users

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    Personal Loan Balance Transfer

    Balance transfer takes place when the unpaid principal amount is moved to another bank for a lower interest rate. Almost every bank allows transfer of loan and if you haven’t defaulted on EMI payments, this shouldn’t be a difficult process. However, you need to carry out an analysis of the associated benefits, which again depends on a lot of factors. Balance transfer is ideal when you are in the early periods of your loan repayment tenure. The main reasons behind loan transfer are reduced interest rates offered by the new financial institution or the increase in loan tenure or at times both. Banks allow balance transfer with little or no charges at all, as most of the times customers would have diligently paid off a good percentage of the outstanding balance. The loan takeover provides you an opportunity to switch from a high-cost loan to one which is comparably low. But you should always consider the following factors before transfer of your loan from one bank to another.

    The total EMIs

    Even though your new bank may offer a reduced monthly EMI, you should be clear with the fact that such an offer would have an impact on your total outflows, as the interest keeps on adding. So before making a decision, make sure that you have compared your current EMI with the new one. Technically, if your finances are in a manageable position, then a loan transfer is not a suggestible option. Also, ensure that you don’t settle for marginally better interest rates.

    Processing fees and technical charges

    You should also consider the processing fees, legal charges, valuation fees, technical charges, etc., and compare it with the reduction offered in EMIs by the new bank. Some banks calculate processing fees as a percentage of the outstanding loan amount, while for others it is based on the borrower’s profession. Also take into account the fees charged by the new bank for closure of accounts.

    Collateral for the outstanding balance

    If you have paid a large portion of your loan amount, then make sure that you do not pledge the original security for the transferred loan. Instead, offer a collateral with a lesser value than the original; and in case your bank insists to keep the original one, then negotiate on the interest rates.

    Softer yet greater aspects

    Banks generally ask you to open a savings account while applying for loans and all your further transactions will be channelled through this account. But if you are applying for a loan through the bank where you maintain your account, it will help you in a lot of ways. Most importantly, being a premium member of the bank, you will be well-versed with all their processes and will have quicker access to services. These little things count in the long run.

    Terms and conditions

    You must read the terms and conditions specified by both the banks before signing the loan transfer. Make sure that you take all the necessary documents from your current lender and submit the same to your new loan provider. This will ensure a hassle free loan transfer.

    Frills on the offer

    These days, banks offer attractive frills on loan transfer, the most common being free credit card and accident insurance. You should however analyse deeply whether you need these offers and be versed with the associated terms and conditions governing them.

    Personal Loan balance transfer – How to do it

    Banks now allow you to transfer a wide variety of financial instruments such as credit cards, home loans, personal loans, etc. The process of transferring your loan is simple and it can be done in a few steps. At first, you have to submit an application to your current lender requesting for loan transfer to another bank. Based on your request, the bank will issue an NOC and statement which mentions the due amount and a letter of consent. You need to submit these documents in the bank where you wish to apply for a loan transfer. After this, your new bank will examine the submitted documents and then approve your request. The bank will sanction the amount for closure with the current lender. On completion of all the transfer formalities, your documents will be handed over to the new lender and all post-dated cheques and ECS with the previous bank will be cancelled. Note that the bank to which you are moving your loan will consider it as a fresh loan and you will once again have to follow all the associated procedures—legal verification, technical evaluation, credit appraisals, etc. You may sometimes be required to pay a processing fee, which falls in the range of 0.5% and 1% of the outstanding loan amount.

    Reasons for transfer of Personal Loan

    There can be several reasons for an individual to apply for loan takeover by a new bank. Listed below are the common few:

    • Better rate of interest
    • Offers on the transfer of loan amount
    • Dissatisfaction with the service offered by the current lender
    • Top up loan facility that allows one to borrow more money
    • When negotiation on certain terms with the current bank fails

    If you are unhappy with your present loan, then there is always an option for you to change your lender and refinance the loan. This allows one to choose a loan which offers reduced EMIs and a longer tenure of repayment. However, do keep in mind that a loan transfer is only possible when you have regularly paid all your EMIs with the current lender. Interest rates should not be the only reason for transfer of loan, but you should also take into account all other factors associated with loans while doing so. Look into the deeper aspects of every offer while switching the bank, because loans are a financial products intended to bring certain amount of profit to the lender. A balance transfer may not be advisable if only a few years remain in the repayment of your loan and you have repaid more than half the loan amount.

    Personal Loan Balance Transfer Reviews

    • Bank Bazaar Personal Loan
      "EXCELLENT"
      0.5 5.0/5 "Blown Away!"
      At the beginning i came to know about the Bank bazaar through the credit card score checking, i use the bank bazaar through both the website as well as the mobile application as it is user friendly to access. The customer support is responsive.
      Was this review helpful? 1
      , hyderabad
      Reviewed on Dec 14, 2018
    • HDFC Bank Personal Loan
      "GOOD"
      0.5 4.0/5 "Great!"
      There is no particular reason for taking the personal loan with the HDFC BANK but the process of applying the personal loan is simple ans easy to get the loan. The loan amount is satisfactory what they have offered added on that the rate of interest is with lower.
      Was this review helpful? 1
      , hyderabad
      Reviewed on Dec 14, 2018
    • Bank Bazaar Personal Loan
      "USER FRIENDLY PORTAL"
      0.5 5.0/5 "Blown Away!"
      It is my first time experience with the Bank bazaar as i am using it through the website as the portal is easy and also it is user friendly to access. The customer support is very good with this with this portal and it is satisfactory to me. It is a good portal to use.
      Was this review helpful? 1
      , bangalore
      Reviewed on Dec 14, 2018
    • IndusInd Bank Personal Loan
      "EXCELLENT"
      0.5 5.0/5 "Blown Away!"
      There is no particular reason for taking the personal loan with the INDUSIND BANK but the loan amount what they have offered is sufficient added on that they have offered the rate of interest is 12.5% with this personal loan. The process of getting the loan is simple and quick.
      Was this review helpful? 1
      , bangalore
      Reviewed on Dec 14, 2018
    • HDFC Bank Personal Loan
      "Good service"
      0.5 3.0/5 "Satisfactory"
      It has been a good experience with this loan and the loan got disbursed in a short period of time. There has not been any hassle faced with the banking services of them, even their customer support has been responsive has been helpful. There has not been any extra charges made by them.
      Was this review helpful? 1
      , kolkata
      Reviewed on Dec 14, 2018
    • SBI Personal Loan
      "Good service"
      0.5 3.0/5 "Satisfactory"
      It had been a good experience with this loan experience with this loan and the whole process went smooth and simple. Within a short period of time they had given me this loan and there has not been any problem and there has not been any sort of additional charges which they had made.
      Was this review helpful? 2
      , kolkata
      Reviewed on Dec 14, 2018
    • HDFC Bank Personal Loan
      "Easy to get a loan"
      0.5 4.5/5 "Excellent!"
      They have processed the loan immediately. I have received the loan amount of Rs. 1.5 lakhs. I have received the loan on time. I'm happy about the interest rate since its a instant loan. There was no documentation has collected. Total tenure period of the loan is 2 years and I'm about to close it.
      Was this review helpful? 1
      , coimbatore
      Reviewed on Dec 14, 2018
    • review Personal Loan
      "Best Financial Service"
      0.5 5.0/5 "Blown Away!"
      Its instant paperless approval personal loan which i got from Home credit financial service . As the rate of interest is satisfactory based on the market price. Their customer service is way good an response was quick .I have chosen the tenure period of1 years and there are nil processing fees.
      Was this review helpful? 1
      , ghaziabad
      Reviewed on Dec 14, 2018
    • review Personal Loan
      "Best Financial Service"
      0.5 5.0/5 "Blown Away!"
      I have take personal loan from Bussan Auto finance which they approved in 1 day and the amount was reflected in next day and they followed instant approval process. As am satisfied with the rate of interest which they have given and i can make the payment monthly though ECS. There are nominal processing fees.
      Was this review helpful? 1
      , ghaziabad
      Reviewed on Dec 14, 2018
    • SBI Personal Loan
      "Best service"
      0.5 5.0/5 "Blown Away!"
      My personal loan was taken with STATE BANK OF INDIA , and they provide nominal rate of interest and it is nominal in the market . The processing fee is nominal and tenure period is 5year . SO far it has been good experience with this bank . Loan amount is satisfactory .
      Was this review helpful? 1
      , hyderabad
      Reviewed on Dec 14, 2018
    • Axis Bank Personal Loan
      "Very Good bank for personal loan"
      0.5 5.0/5 "Blown Away!"
      I bought my personal loan in the year of 2017. They have offered me a interest rate of 14.5% and the loan amount was Rs. 2.59 lakhs. There was some processing fee which is nominal according to the standard charges. Getting a loan from Axis bank is easy. There is a pre-closure and partial payment is available without any charges.
      Was this review helpful? 1
      , bangalore
      Reviewed on Dec 14, 2018
    • HDFC Bank Personal Loan
      "Good service"
      0.5 4.0/5 "Great!"
      I have taken a car loan with HDFC bank and my experience was good, the loan amount was based on my requirement and the rate of interest was nominal when compared to other banks. Customer service was good with this bank and the tenure period is 5 years for this loan.
      Was this review helpful? 1
      , coimbatore
      Reviewed on Dec 14, 2018
    • Bank Bazaar Personal Loan
      "Best Service"
      0.5 5.0/5 "Blown Away!"
      It was a good experience so far with bankbazaar, they provide good services when compared to others in the market. Customer service was good with bankbazaar and they responded on time. The website of bankbazaar is easy to use and is user friendly.
      Was this review helpful? 1
      , coimbatore
      Reviewed on Dec 14, 2018
    • Early Salary Personal Loan
      "Looking for less interest rate"
      0.5 4.0/5 "Great!"
      My experience was good with Early salary for personal loan, the loan amount was for Rs 12000 with high interest rate when compared to others. Customer service was good and i received my loan amount on time. Tenure period for this loan is for 1 month.
      Was this review helpful? 0
      , coimbatore
      Reviewed on Dec 14, 2018
    • Bank Bazaar Personal Loan
      "Good service"
      0.5 4.0/5 "Great!"
      I am using the services of bankbazaar from last 3-4 years, the services provided by bankbazaar is good when compared to others in the market. Customer service was good and they responded on time. Mobile app of bankbazaar is easy to navigate and user friendly to use.
      Was this review helpful? 0
      , bangalore
      Reviewed on Dec 14, 2018
    • Incred Personal Loan
      "Not satisfied"
      0.5 2.0/5 "Expected more"
      I am not satisfied with the services provided by INCRED, the process was smooth and i received my loan amount within 7-10 days. I requested loan amount for Rs 2 lacs but they approved only for Rs 93000 and the rate of interest was high when compared to others. Customer service was not up to the mark with INCRED.
      Was this review helpful? 1
      , bangalore
      Reviewed on Dec 14, 2018
    • Bank Bazaar Personal Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      It was a good experience so far with bankbazaar, they provide good services when compared to others in the market. Customer service was good with bankbazaar and they responded on time. The website of bankbazaar is easy to use and is user friendly.
      Was this review helpful? 1
      , ludhiana
      Reviewed on Dec 14, 2018
    • IndusInd Bank Personal Loan
      "Not satisfied"
      0.5 1.0/5 "Really Bad"
      It was not a good experience with Indusind bank for personal loan, the process took 10 days to complete. Customer support was not up to the mark with this bank and there was no proper response. Loan amount was or Rs 2 lacs with high interest rate and tenure period is 5 years.
      Was this review helpful? 1
      , ludhiana
      Reviewed on Dec 14, 2018
    • SBI Personal Loan
      "BETTER"
      0.5 5.0/5 "Blown Away!"
      The personal loan has been taken from the STATE BANK OF INDIA and i am satisfied with the services of this bank as i am using it from many years and the rate of interest what they have given is satisfactory with this bank. The duration to repay this loan is for 5 years.
      Was this review helpful? 1
      , new delhi
      Reviewed on Dec 14, 2018
    • Bank Bazaar Personal Loan
      "Best Service"
      0.5 5.0/5 "Blown Away!"
      I know bankbazaar.com from last 2 years, my experience was good so far with bankbazaar. Customer services provided by bankbazaar is good and their response was prompt. The website of bankbazaar is easy to use and is user friendly.
      Was this review helpful? 1
      , new delhi
      Reviewed on Dec 14, 2018
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