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  • Personal Loan Balance Transfer is Rated as "Great!" by 94412 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

    • Bajaj Finserv Personal Loan
      "Best Financial Service"
      0.5 5.0/5 "Blown Away!"
      I have take personal loan from the Bajaj finance which they approved in 2-3 day and the amount is reflected in next day ,its instant approve process. As am satisfied with the rate of interest which is quiet nominal one They provided the tenure period of 1-5 year and i make the payment monthly though ECS There is nominal processing fees also,
      Was this review helpful? 2
      , chennai
      Reviewed on Oct 17, 2018
    • HDFC Bank Personal Loan
      "Best Financial Service"
      0.5 5.0/5 "Blown Away!"
      I have taken personal loan from Hdfc bank . Am satisfied with the rate of interest which they have provided Is high . There is nominal processing fees for the loan which is nominal one. I make the payments through Ecs every month. They did quick documentation and received the loan.
      Was this review helpful? 1
      , chennai
      Reviewed on Oct 17, 2018
    • Bank Bazaar Personal Loan
      "Experience is good"
      0.5 5.0/5 "Blown Away!"
      There were no issues or delay at Bankbazaar.com, the customer support was on time to contact me and inform me the details. The website is also good and it is informative too. It was a hassle free experience and in all a smooth process. There were follow up calls too.
      Was this review helpful? 1
      , mumbai
      Reviewed on Oct 17, 2018
    • Incred Personal Loan
      "High on ROI and charges"
      0.5 5.0/5 "Blown Away!"
      InCred experience is good when it comes to the personal loan. They were on time and the documents were also collected on time. I got the loan amount as they needed. The rate of interest is too high. It is of 21% and the processing fee is also high. It is recommendable for an emergency.
      Was this review helpful? 1
      , mumbai
      Reviewed on Oct 17, 2018
    • review Personal Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      I have taken a personal loan from Ujjivan small finance bank. There was no processing charges and the rate of interest is around 12.5%. The process is good, but the only thing is the loan amount is maximum of 50K. Overall it has been a good experience.
      Was this review helpful? 1
      , pune
      Reviewed on Oct 17, 2018
    • Bank Bazaar Personal Loan
      "Overall good"
      0.5 4.0/5 "Great!"
      Bankbazaar.com is very good in my point of view. They have contacted me immediately and there was no delay and there were follow up calls too in the process. The website is easy to use and check the banks. One thing is, it would be better if I am provided with the customer care number of the bank. So if the bank is delaying in the process, the customer can contact the bank directly and check.
      Was this review helpful? 1
      , pune
      Reviewed on Oct 17, 2018
    • Incred Personal Loan
      "ROI is very high"
      0.5 1.5/5 "Bad"
      I have taken a personal loan from InCred and it is good but not as expected. I was expecting the loan within two to three days, but it took 15 days. I had applied for a medical issue. The rate of interest is very high, it is of 28%. The processing charges is also, it is 3%. The loan amount was as per my request.
      Was this review helpful? 1
      , pune
      Reviewed on Oct 17, 2018
    • review Personal Loan
      "Best service"
      0.5 5.0/5 "Blown Away!"
      My personal loan was taken with BAJAJ FIN INSTITUTION , The process was very smooth i got my loan within few days . There is no charge for foreclosure but rate of interest is too high with this bank . Overall it has been very good experience with BAJAJ ALLIANCE
      Was this review helpful? 1
      , navi mumbai
      Reviewed on Oct 17, 2018
    • HDFC Bank Personal Loan
      "Good service"
      0.5 4.0/5 "Great!"
      It has been a good experience in getting a personal loan from them where the process in getting the loan had been smooth and easy. The loan amount which they had provided had been sufficient and fulfilled the requirements. The interest rate with them was also not too high compared with the market rate.
      Was this review helpful? 2
      , kolkata
      Reviewed on Oct 17, 2018
    • HDFC Bank Personal Loan
      "Best service"
      0.5 5.0/5 "Blown Away!"
      My personal loan was taken with HDFC BANK , they charged 10.99% rate of interest and they have not Charge processing fee with this bank . I got best service through this bank the process was very smooth and easy . They provide me sufficient tenure period .
      Was this review helpful? 1
      , navi mumbai
      Reviewed on Oct 17, 2018
    • Bajaj Finserv Personal Loan
      "Good service"
      0.5 3.0/5 "Satisfactory"
      The experience i had with this loan has been good and they had given me a loan amount of 5,00,000 which has been satisfactory. The interest rate with them has been okay but there has been charges made by them which was not even intimated. They had promised something and had taken something.
      Was this review helpful? 1
      , hyderabad
      Reviewed on Oct 17, 2018
    • ICICI Bank Personal Loan
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have taken my personal loan from ICICI bank, i am satisfied with my loan amount which they have provided to me and even they charge nominal rate of interest and even processing fee which they charge was normal, i did not found any difficulty in getting my loan approval it run very smoothly.
      Was this review helpful? 2
      , bangalore
      Reviewed on Oct 16, 2018
    • SBI Personal Loan
      "GOOD"
      0.5 5.0/5 "Blown Away!"
      My personal loan was taken from the STATE BANK OF INDIA and it got approved very quick also the process of getting the loan is is easy and good. I have got the sufficient amount of personal loan. The service is good and responsive also added on that it is good to use.
      Was this review helpful? 5
      , chennai
      Reviewed on Oct 15, 2018
    • Bank Bazaar Personal Loan
      "Good service"
      0.5 4.0/5 "Great!"
      I know bankbazaar.com from last 6 months but i am using the service from last 5-6 months. Customer service is good with bankbazaar and their response was on time.Both mobile app and the website of bankbazaar is easy to use and is user friendly.
      Was this review helpful? 5
      , noida
      Reviewed on Oct 15, 2018
    • IndusInd Bank Personal Loan
      "Good service"
      0.5 4.0/5 "Great!"
      My personal loan application was approved with IndusInd bank and the experience was good, the process was quick and i received my credit card within 2-3 days. The loan amount was for Rs 2 lacs with nominal interest rate when compared to others. Customer service was good and they responded on time.
      Was this review helpful? 3
      , noida
      Reviewed on Oct 15, 2018
    • Bajaj Finserv Personal Loan
      "Very Good Service"
      0.5 4.0/5 "Great!"
      The process in getting this loan has been smooth and easy and the loan amount which they had provided had been satisfactory. They had been charged me with some processing fee but there has not been any sort of additional charges. The interest rate which they offered also had been good where it was comparatively less.
      Was this review helpful? 3
      , bangalore
      Reviewed on Oct 15, 2018
    • Capital First Personal Loan
      "Very Good Service"
      0.5 4.0/5 "Great!"
      It has been a good experience in getting this loan from them. The loan amount which they had provided had been satisfactory and the interest rate with them has also been good when compared with the market rate, there has been some processing fee which has been charged by them but it has been nominal. Overall it was a good experience.
      Was this review helpful? 3
      , bangalore
      Reviewed on Oct 15, 2018
    • ICICI Bank Personal Loan
      "Best Financial Service"
      0.5 5.0/5 "Blown Away!"
      I have taken personal loan from Icici bank , Am satisfied with the rate of interest of 10.99% which is low where no other bank will give for such low interest with nominal processing fees. They instantly approved .Their customer executive used to call for the offers if any offers goes around.
      Was this review helpful? 3
      , coimbatore
      Reviewed on Oct 15, 2018
    • Axis Bank Personal Loan
      "Good Service"
      0.5 4.0/5 "Great!"
      Applied a personal loan with AXIS bank, i was in a urgent need and my application was processed in a week time. I find the interest rates very high here The sales person didn't gave me any idea on interest rates, as i was needed money for a medical urgency i didn't inquired for interest rate. But now its been 3 months and i feel like its very high.Have taken amount of 3 laks, would wish if the rates come down, it will be a great relief.
      Was this review helpful? 3
      , hyderabad
      Reviewed on Oct 15, 2018
    • Fullerton Personal Loan
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I had taken my personal loan fom Fullerton India and it has a good experience i had with them . i am satisfied with loan amount which they have given to m and even i am happy with tenure period as well,they rate of interest and the processing fee is nominal they have charge me.
      Was this review helpful? 3
      , kolkata
      Reviewed on Oct 15, 2018
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