What is Personal Loan Balance Transfer?

A personal loan balance transfer facility allows a borrower to transfer his outstanding loan amount to another lender for a lower interest rate & hence reducing EMI. So you must consider balance transfer when your outstanding loan amount is higher, and the current lender is charging higher interest rates than the market.

Calculating EMI for a personal loan balance

For calculating the personal loan balance transfer EMI, you will need the following details:
• Loan amount
• Loan tenure (in months)
• EMI already paid
• EMI to be paid
• Interest rates

Particulars Existing Loan New Loan
Outstanding Balance 500000 450323
Interest Rate (p.a) 18% 12.00%
Remaining Loan Tenure (months) 48 Month 48 Month
Monthly EMI Payable Rs 12967 Rs 11859
Difference in EMI Payable Rs. 1108
Total Interest Payable Rs 622416 Rs 569232
Wow Total Savings Rs. 172093

Key Benefits of Personal Loan Balance Transfer

The highlights of a personal loan balance transfer are:

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Better interest rates

If the current interest rate is becoming a burden to your monthly budget, then opt for a balance transfer facility, where you can repay the remaining loan with affordable interest rates. To find the best affordable interest rates, visit loans4you.in.

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Lower monthly EMI

You reduce your payable interest rate and the EMI by opting to transfer your existing personal loan.

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Revised repayment tenure

When applying for a balance transfer, either of the two things happens: lower the EMI and revise the repayment tenor or shorten the loan tenor to repay the loan faster.

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Top up facility

If you have an existing personal loan but require urgent funds, you can apply for a top-up loan facility and the balance transfer. The top-up facility is mainly used to pay the education expenses or daily expenses.

Compare Personal Loan Transfer Interest Rates of All Major Banksind Other Loan Products

Personal Loan Transfer is important because you can get low interest Rate.

Bank Name Floating Interest Rates Per Lac Emi
SBI 9.60% - 13.60% Rs. 2,105- Rs. 2,306 Apply Now
HDFC Bank 10.25% - 18% Rs. 2,162 - Rs. 2,722 Apply Now
Tata Capital 10.49% - 14.25% Rs. 2,174 - Rs. 2,539 Apply Now
IDFC Bank Ltd 10.49% - 30% Rs. 2,149 - Rs. 3,359 Apply Now
ICICI Bank 10.50% onwards Rs. 2,174 - Rs.2,566 Apply Now
Kotak Mahindra Bank 10.99% - 20.99% Rs. 2,174 - Rs. 2,705 Apply Now
Yes Bank 10.70% - 15.99% Rs.2,162 - Rs. 2,485 Apply Now
IndusInd Bank 10.49% - 31.50% Rs. 2,174 Onwards Apply Now
Axis Bank 10.25% - 24% Rs. 2,224 - Rs. 2,877 Apply Now
Fullerton India 14.00% - 24.00% Rs. 2,327 - Rs. 2,877 Apply Now
RBL Bank 17.50% - 26.00% Rs. 2,512 - Rs.2,994 Apply Now
Standard Chartered Bank 11.00% - 12.50% Rs. 2,327 - Rs. 2,705 Apply Now

Key points to acknowledge while applying for a personal loan transfer .

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Tenure unchanged

Reduce EMIs & save for the future.

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EMI amount unchanged

Reduce your loan tenure and settle the loan in lesser time.

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Maximum tenure

It reduces the monthly instalments, i.e., EMIs.

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Reduced EMI

Save money with decreased monthly instalments

Personal Loan Balance Transfer Process

For switching your lenders to repay a personal loan, you can do the following:

Check your existing personal loan agreement and see whether you're eligible for a balance transfer.


Search for a new bank or lender offering you a loan with lower interest rates on loans4you.in, where the new bank is ready to provide you with a lower interest rate with your comfort.


Later, compare the new personal loan rate of interest with the existing one and see are you getting the benefits from it or not?

Complete the documentation and get a letter from the current bank specifying the outstanding loan amount.


Submit documents to the new lender.

After the approval, pay EMI to your bank with lower interest rates. .

Eligibility Criteria for Personal Loan Balance Transfer

To avail of the personal loan balance transfer facility, you must stand out with the essential eligibility criteria and mainly the borrower's capacity to repay the loan amount.
Also, there are certain charges that the new and the existing bank charges to carry forward the balance transfer process. Thus, the costs include:
• The application charge/ initial processing fee (non-refundable)
• Processing and administrative fee
• Technical /valuation charge
• Legal /title charge
• Stamp paper/franking fee on the loan agreement
• Notary charge
• Property insurance charge
• Certain charge
• Loan insurance charge

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Salaried & Self Employed

You must be a salaried employee of any private limited company or public sector undertaking or self-employed with a minimum turnover as per the current policy.

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Age

You must be between 21 to 60 years of age.

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Minimum Income

You must have a minimum salary of INR 25,000 in case you reside in Mumbai/Delhi or INR 20,000 for rest of India.

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Experience

You must have a at least 1 year of work experience.

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CIBIL score

You must have a CIBIL score of at least 750.

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Terms and Conditions

You can opt for an EMI of a maximum 65%, as a percentage of your income subject to specific terms and conditions.

Fees and Charges of All Major Banks

The list of charges that you need to pay for a home loan are as follows:

  • Application Charge/ Initial Processing fee – Non-refundable
  • Processing fee
  • Administrative fee
  • Technical /Valuation Charge
  • Legal /Title Charge
  • Stamp Paper/Franking fee on the loan agreement
  • Notary Charge
  • Property Insurance Charge
  • Cersai Charge
  • Loan Insurance Charge

Bank Name Processing Fee Repayment Charges
SBI 0 - 1% Plus GST of the loan amount 0 - 3% Plus GST of Outstanding Amt
HDFC Bank 2% Plus GST with Minimum of Rs 3,500 0 - 4% Plus GST of Outstanding Amt
Tata Capital Rs 4999 - Rs 10999 Plus GST 4% Plus GST of Outstanding Amt
IDFC Bank Ltd 2 - 2.50% Plus GST of the loan amount 5% Plus GST of Outstanding Amt
ICICI BanK Upto 2.50% Plus GST of the loan amount 5% of the principal outstanding + GST
Kotak Mahindra Bank 0.99 - 2.50% Plus GST of the loan amount 5% Plus GST of Outstanding Amt
Yes Bank Upto 2.50% Plus GST of the loan amount 0 - 2% Plus GST of Outstanding Amt
IndusInd Bank 2.50% Plus GST of the loan amount As applicable by the bank
Axis Bank 1.5 - 2% Plus GST of the loan amount 0 - 2% Plus GST of Outstanding Amt
Fullerton India 2.00% Plus GST of the loan amount 0 - 4% Plus GST of Outstanding Amt
RBL Bank 2 - 2.50% Plus GST of the loan amount 3 - 5% Plus GST of Outstanding Amt
Standard Chartered Bank 1.00% Plus GST of the loan amount 1 - 5% Plus GST of Outstanding Amt

List of Documents for Personal Loan Balance Transfer

When you apply for balance transfer, it's almost like applying for a new loan. Therefore, you might have to submit all the documents that you may have submitted with the old lender. Take a look at some of the key documents required to apply for balance transfer:

Complete The Form

Completed appliction form for balance transfer of home loan.

Photo

Applicant's latest passport-size photographs.

Identity Proof

1. Address Proof
2. Age Proof
3. Income Proof

4.Age proof

1. Birth certificate
2. 10th marksheet
3. Driving license
4. PAN
5. Voter ID

Address Proof

1. Aadhar Card
2. Voter ID
3. Driving license
4. Passport

Income proof

1. Bank statements
2. salary slips
3. Form-16
4. IT returns

Letter of Consent

Documents related to existing loan including a letter of consent.

Outstanding Letter

1. sensen Letter
2. Statment of Account
3. List of Orginal Document