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  • Personal Loan Balance Transfer is Rated as "Great!" by 93284 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

    • ICICI Bank Personal Loan
      "QUICK PROCESS"
      0.5 4.5/5 "Excellent!"
      Processing and documentation was very quick, as i have the savings account with the same bank there was not having any issues in transferring the funds, i actually expected 2 lakh, but they gave only , 1lakh, as the approval from the bank end.
      Was this review helpful? 2
      , chennai
      Reviewed on Aug 14, 2018
    • Standard Chartered Bank Personal Loan
      "EXCLLENT "
      0.5 4.0/5 "Great!"
      Customer service was excellent , about the documentation, the process was done on time, i the loan processed quickly than i expected, there was a smooth transaction while transferring fund to my account, without any hassle or delay its really good.
      Was this review helpful? 1
      , bangalore
      Reviewed on Aug 14, 2018
    • ICICI Bank Personal Loan
      "GOOD SERVICE"
      0.5 4.0/5 "Great!"
      Documentation and processing was easy, rate of interest can be reduced in further , processing fee as well, when they informed me insurance and the processing fee comes around 6000rs but they have charges more when compared with other banks.
      Was this review helpful? 1
      , coimbatore
      Reviewed on Aug 14, 2018
    • ICICI Bank Personal Loan
      "QUICK LOAN "
      0.5 4.0/5 "Great!"
      Application and website are user friendly , i have taken this loan for 48 months, i feel like the fees and charges, rate of interest is little high, processing and documentation was easy, i used to make payments by NEFT, which will reach them soon.
      Was this review helpful? 1
      , gurgaon
      Reviewed on Aug 14, 2018
    • Bank Bazaar Personal Loan
      "VERY GOOD SERVICE "
      0.5 4.0/5 "Great!"
      The main benefit of bankbazaar for me is the time consumption because i no need to go to bank to bank for the informations and for applying, online itself i have uploaded the documents, executives can explain even more better so that we can get the complete information.
      Was this review helpful? 1
      , bangalore
      Reviewed on Aug 14, 2018
    • ICICI Bank Personal Loan
      "BELOW AVAERAGE SERVICE"
      0.5 1.0/5 "Really Bad"
      Interest rate can be reduces as they have given me the rate of interest as 14.99%, every month 5th the deduction will be done from my account, also they can reduce the process timing as it took around 1 month to get processed which i felt little long period.
      Was this review helpful? 0
      , bangalore
      Reviewed on Aug 14, 2018
    • Indian Bank Personal Loan
      "GOOD SERVICE "
      0.5 4.0/5 "Great!"
      I have got the flood loan with this bank, with low interest rates, the loan value is 1 lakh ,its taken for 3 years tenure, only 3-4 EMIs are pending, processing was easy and i got it within a week of time so the process was quick as we were in urgency.
      Was this review helpful? 1
      , chennai
      Reviewed on Aug 14, 2018
    • Bank Bazaar Personal Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      My experience was really amazing with BANK BAZAAR. The customer service and responses was up to the mark. This is my first experience here . The customer service and responses was very good . I have used their website which is quite user friendly.,
      Was this review helpful? 1
      , bhilwara
      Reviewed on Aug 14, 2018
    • HDFC Bank Personal Loan
      "Good"
      0.5 4.5/5 "Excellent!"
      I have taken my personal loan with HDFC bank. I had a good loan process here and the loan amount was 2 lakhs . The interest rate was very satisfactory . The tenure period was 4 years .The customer service and responses was up to the mark. The processing fee is nominal .
      Was this review helpful? 1
      , bhilwara
      Reviewed on Aug 14, 2018
    • YES Bank Personal Loan
      "Satisfactory"
      0.5 4.0/5 "Great!"
      I have taken a personal loan earlier with YES Bank and the process to get the loan was good. I have closed this loan too and the process was easy after the closure of the loan. The rate of interest and processing charges is nominal and overall good experience.
      Was this review helpful? 1
      , chennai
      Reviewed on Aug 14, 2018
    • Kotak Personal Loan
      "Average"
      0.5 3.0/5 "Satisfactory"
      My personal loan was taken with KOTAK BANK 1 year back.The loan amount was 1 lakh . The customer service and responses was very nice The tenure period was 5 years here. The documentation process was good but after 15-20 days only the loan was disbursed.
      Was this review helpful? 2
      , bangalore
      Reviewed on Aug 14, 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 good. I use the website is very user friendly and easy to navigate. The web portal's accuracy is good.My overall experience is very much satisfactory .
      Was this review helpful? 1
      , bangalore
      Reviewed on Aug 14, 2018
    • ICICI Bank Personal Loan
      "Not satified"
      0.5 2.0/5 "Expected more"
      My credit card was taken with ICICI Bank.I am not happy with the process here . The loan got approved but they have disbursed it after 2 months only. The interest rate was bit high and the tenure period was 3 years . The customer service and responses was not good. The processing fee was high .
      Was this review helpful? 0
      , bangalore
      Reviewed on Aug 14, 2018
    • Bank Bazaar Personal Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      My experience was really good with BANK BAZAAR. The customer service and responses was good. The mobile application is very user friendly and easy to navigate . I am happy with the overall service and there is no inconvenience faced.My experience was excellent.
      Was this review helpful? 0
      , bangalore
      Reviewed on Aug 14, 2018
    • HDB Financial Services Personal Loan
      "Very good"
      0.5 4.0/5 "Great!"
      My personal loan was taken with HDB FINANCE. The process was very nice but it took a longer time here. The interest rate was on a higher side . The tenure period was 5 years . The customer service and responses was good. They were calling up for many times.The processing fee was nominal and the documentation was smooth.
      Was this review helpful? 0
      , bangalore
      Reviewed on Aug 14, 2018
    • HDFC Bank Personal Loan
      "Good service"
      0.5 4.5/5 "Excellent!"
      I have taken personal loan from HDFC BANK . There is no hidden charges. I use to pay 8700 as EMI per month including insurance and tenure period is 5years. I am satisfied with customer service. Processing fee is 5000 and it is nominal. My loan experience was good. My loan amount is up to the mark and interest rate is 10% it is too high compare to others. There is no foreclosure fee .
      Was this review helpful? 1
      , jharsuguda
      Reviewed on Aug 14, 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 very nice. I have applied through the website which is very user friendly and easy to access. My overall experience which I had with bankbazaar was really good.
      Was this review helpful? 2
      , nagpur
      Reviewed on Aug 14, 2018
    • HDFC Bank Personal Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      My personal loan was taken with HDFC Bank. The customer service and responses was very good. The loan amount was 6 lakhs and the interest rate was satisfactory . The tenure period was 4 years . I am satisfied with the service and responses was good. The documentation was very good and smooth. The processing fee was nominal.
      Was this review helpful? 1
      , nagpur
      Reviewed on Aug 14, 2018
    • HDFC Bank Personal Loan
      "best services"
      0.5 5.0/5 "Blown Away!"
      I have taken personal loan from HDFC BANK . There are no hidden charges. I use to pay 7700 as EMI per month . Customer service response is fantastic . Processing fee is 1% on loan amount and tenure period is 3year and it is nominal. My loan experience was good. My loan amount is 3.5 lakh and interest rate is 18% it is too high in the market . So far my experience is good with HDFC BANK .
      Was this review helpful? 0
      , kumbakonam
      Reviewed on Aug 14, 2018
    • Bank Bazaar Personal Loan
      "Good service"
      0.5 4.0/5 "Great!"
      I came to know about BANK BAZAAR website through one of my friend . For the first time i have taken financial product from this website . I have been using BANK BAZAAR for past 3 month . Customer service response is good . So far my experience is good with BANK BAAZAR .
      Was this review helpful? 1
      , bangalore
      Reviewed on Aug 14, 2018
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