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:
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.
Lower monthly EMI
You reduce your payable interest rate and the EMI by opting to transfer your existing personal loan.
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.
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 | |
| 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 .
Tenure unchanged
Reduce EMIs & save for the future.
EMI amount unchanged
Reduce your loan tenure and settle the loan in lesser time.
Maximum tenure
It reduces the monthly instalments, i.e., EMIs.
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
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.
Age
You must be between 21 to 60 years of age.
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.
Experience
You must have a at least 1 year of work experience.
CIBIL score
You must have a CIBIL score of at least 750.
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:
Completed appliction form for balance transfer of home loan.
Applicant's latest passport-size photographs.
1. Address Proof
2. Age Proof
3. Income Proof
1. Birth certificate
2. 10th marksheet
3. Driving license
4. PAN
5. Voter ID
1. Aadhar Card
2. Voter ID
3. Driving license
4. Passport
1. Bank statements
2. salary slips
3. Form-16
4. IT returns
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Documents related to existing loan including a letter of consent.
1. sensen Letter
2. Statment of Account
3. List of Orginal Document