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  • Personal Loan Balance Transfer is Rated as "Great!" by 91489 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.

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    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.

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    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

    • HDFC Bank Personal Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      I have my personal loan wit HDFC bank which was taken 1 year back. The loan amount was 3 lakhs and the interest rate was 10.99% which is average . The tenure period was 36 months. The customer service and responses was really good. The loan was approve don time and I have not faced any inconvenience with the process,.
      Was this review helpful? 0
      , thane
      Reviewed on May 20, 2018
    • HDFC Bank Personal Loan
      "Good Service"
      0.5 5.0/5 "Blown Away!"
      I took a personal loan from the HDFC bank. The loan application was completely paperless. The loan amount was credited to my account quickly. Overall the whole application process was really fast and hassle free. It is so easy to apply for personal with HDFC
      Was this review helpful? 0
      , secunderabad
      Reviewed on May 20, 2018
    • Bank Bazaar Personal Loan
      "Excellent"
      0.5 4.5/5 "Excellent!"
      Bank bazaar is a one stop solution for all the financial products . The customer service and responses was really good. The website is very user friendly and easy to navigate . The web portals accuracy and speed is good so I would like to recommend to others.,
      Was this review helpful? 0
      , pune
      Reviewed on May 20, 2018
    • Citibank Personal Loan
      "Not satisfied"
      0.5 1.0/5 "Really Bad"
      I have approached CITI bank for my personal loan . Their interest rate was very high so I have canceled and taken with HDFC bank. I was looking for 8 lakhs and the interest rate was 15.85% which si very high . The customer service and responses was good.
      Was this review helpful? 0
      , pune
      Reviewed on May 20, 2018
    • HDB Financial Services Personal Loan
      "Satisfactory"
      0.5 5.0/5 "Blown Away!"
      I have taken my personal loan with HDFC bank 3 years back. The loan amount was 1,14,000 and the interest rate was 11-12% which is average . The customer service and responses was really good. The process was very good and they haves sanctioned the loan with the committed time .
      Was this review helpful? 0
      , aurangabad
      Reviewed on May 20, 2018
    • Bank Bazaar Personal Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      Bank bazaar is a good platform for all the financial products . The customer service and responses really good. The website has many good options on banks and interest rate . The web portal's accuracy and speed is good.My overall experience was good.
      Was this review helpful? 0
      , aurangabad
      Reviewed on May 20, 2018
    • Fullerton Personal Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      I have approached FULLERTON for my personal loan. There is no requirement for the loan as of now so i have canceled the loan process. The loan amount was 4 laksh and interest rate was 30% which is high .The customer service and responses was good.
      Was this review helpful? 0
      , aurangabad
      Reviewed on May 20, 2018
    • IndusInd Bank Personal Loan
      "Good"
      0.5 3.0/5 "Satisfactory"
      My personal loan was taken with INDUSIND BANK. They have rejected the application. They have collected all the documents. The customer service and responses was very good. I was looking for 3 lakhs and the interest rate .My overall experience was good.
      Was this review helpful? 0
      , bangalore
      Reviewed on May 20, 2018
    • ICICI Bank Personal Loan
      "Average"
      0.5 3.0/5 "Satisfactory"
      My personal loan was taken with ICICI bank few months back. The loan amount was 4 lakhs and the interest rate was 10.99%n which is satisfactory . The customer service and responses was very good,. The process was bit lengthy and they have take much time. They have provided door step service for collecting documents.
      Was this review helpful? 0
      , bangalore
      Reviewed on May 20, 2018
    • HDFC Bank Personal Loan
      "Very good"
      0.5 5.0/5 "Blown Away!"
      My personal loan was taken with HDFC bank few months back. The loan amount was 5 lakhs and the interest rate was 10.99% which is average . The tenure period was 5 years and the process easy very smooth. They have sanctioned the loan with the committed time.
      Was this review helpful? 0
      , bangalore
      Reviewed on May 20, 2018
    • Bank Bazaar Personal Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      Bank bazaar is a good platform for all the financial products . The customer service and response was really good. The website has many good options on banks and interest rate . I have not faced any issues with the service so its recommendable.
      Was this review helpful? 0
      , bangalore
      Reviewed on May 20, 2018
    • Citibank Personal Loan
      "Not satisfied"
      0.5 1.0/5 "Really Bad"
      I have approached CITI bank for my personal loan but their interest rate was very high so i have canceled here and taken with ICICI bank.I was looking fir 4 lakhs and the interest rate was 12.24% which is very high . I am satisfied with the customer service and responses.
      Was this review helpful? 0
      , bangalore
      Reviewed on May 20, 2018
    • Axis Bank Personal Loan
      "Average"
      0.5 3.0/5 "Satisfactory"
      My personal loan was taken with AXIS BANK 2 years back. The loan amount was 6 lakhs and the interest rate was 11% which is high . The tnrue period was 4 years . The process was very good and the possessing fee was 7000. My overall experience was good.
      Was this review helpful? 0
      , new delhi
      Reviewed on May 20, 2018
    • Bank Bazaar Personal Loan
      "Good"
      0.5 3.5/5 "Pretty good"
      Bank bazaar is a good platform for all the financial products . The customer service and responses was really good. The websites option was really good. The web portals accuracy is also good. I am happy with the overall service here so its recommendable.
      Was this review helpful? 0
      , new delhi
      Reviewed on May 20, 2018
    • Kotak Personal Loan
      "Average"
      0.5 2.5/5 "Just OK"
      I have approached KOTAK bank for my personal loan .They have canceled my request with out any intimations. I was looking for 6 lakhs and the interest rate was 14.99% which is very high . The customer service and responses was not good.My experience was not up to the mark.
      Was this review helpful? 0
      , new delhi
      Reviewed on May 20, 2018
    • Bank Bazaar Personal Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      Bank bazaar is a good platform for all the financial products . The customer service and responses was really good. The website has many good options on banks and interest rate . The web portal's accuracy and speed is good so I would like it recommend to others.
      Was this review helpful? 0
      , chennai
      Reviewed on May 20, 2018
    • IndusInd Bank Personal Loan
      "Not satisfied"
      0.5 1.0/5 "Really Bad"
      My personal loan was taken wit INDUSIND bank. The loan amount was 3 lakhs and the interest rate was 12% which is bit high . The customer service and responses was good. There is no processing fee and the tenrue period was 2 years.My experience with Indusind was not all good.
      Was this review helpful? 0
      , chennai
      Reviewed on May 20, 2018
    • Bajaj Finserv Personal Loan
      "Good Service"
      0.5 5.0/5 "Blown Away!"
      I took a personal loan from the Bajaj Finserv for 11 Lakhs. The application process was easy and with in1 week the loan amount was Credited to account. The documentation and the application process was easy and hassle free. Overall it was a good expereince.
      Was this review helpful? 0
      , bangalore
      Reviewed on May 20, 2018
    • HDFC Bank Personal Loan
      "Good Service"
      0.5 4.0/5 "Great!"
      I took a personal loan for 1 Lakh from the HDFC bank. They offered an interest rate of 16.2 % .The application process was smooth and hassle free. I got the loan amount credited to my account with in 2 days. The whole application process and documentation was quick and hassle free.
      Was this review helpful? 0
      , hyderabad
      Reviewed on May 20, 2018
    • Axis Bank Personal Loan
      "GOOD"
      0.5 3.5/5 "Pretty good"
      I have been using my PERSONAL LOAN from AXIS BANK since 30 months i am really happy to hold my loan from this bank. Because the thing is that there is no pre-closure charges applicable in this bank. But the rate of interest is very high when compared to the other banks but other than that everything is good.
      Was this review helpful? 0
      , chennai
      Reviewed on May 20, 2018
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