All There Is To Know About Personal Loan Balance Transfer | Money In Minutes

1. ALL THERE IS TO KNOW ABOUT PERSONAL LOAN BALANCE TRANSFER Personal loans have become the go-to solution for people facing different types of financial emergencies. However, once the loan has been availed and the problem resolved using the funds disbursed by the lender, most borrowers struggle to keep up with the timely payment of EMIs. The situation is further complicated by the fact that personal loans are generally offered as unsecured loans and thus come with a significantly higher interest rate. Even when borrowers opt for a personal loan from private finance in Delhi, they need to pay greater EMIs due to the associated higher interest rate. This can prove to be extremely stressful for borrowers, especially those with limited resources. One way for such individuals to overcome this problem is by opting for a personal loan balance transfer, which can help in reducing the interest rate and EMI amount payable by them. An Overview Of Personal Loan Balance Transfer Personal loan balance transfer refers to the process of transferring the total outstanding of a personal loan from one lender to another by the borrower. In most such cases, the financial institution to which the loan balance is transferred offers a lower interest rate on the outstanding amount which naturally reduces the EMI amount. The option is extremely beneficial for people looking to reduce the burden of their debt and thus enhance their savings. The method basically requires the borrowers to get another loan from a different lender offering more favorable terms to pay off their current loan in full and before time. Key Features Of Balance Loan Transfer Learning about the key features of the personal loan transfer process is essential for the borrowers considering this option to make an informed decision. The most important of these features are discussed in brief as follows. ● Lower Interest Rate: One of the key features of loan balance transfer for both long and short-term personal loans is that it generally comes with a lower interest rate. The new lenders usually offer a lower rate of interest on the loan transfer to entice the borrowers. Moreover, the process involves transferring only the outstanding loan amount, which is way less than the original loan value. This further helps in reducing the interest rate and the EMI amount to be paid by the borrowers. Longer Repayment Tenure: Balance transfer enables the borrowers to renegotiate the loan terms, including getting an extension on their repayment tenure. This can help reduce the overall amount of the monthly EMI to be paid by them considerably and thus help them to manage their funds better. ● ●

2. ● Avail Additional Features: Depending on the past payment record of the borrowers, the new lenders may offer additional features such as waiver of last EMI and zero processing fees, etc. This can help to further ease the financial stress of the borrowers and enable them to take better control of their finances. Loan Top-up Facility: In case the borrowers, feel the need for the same, they may also seek a loan top-up facility from their new lenders during the balance transfer process. Many lenders and financial institutions offer this facility at a fairly competitive and relatively lower rate of interest for individuals ready to transfer their outstanding personal loans. Better Services: Amongst the key reasons that make people opt for personal loan balance transfer the assurance of better services by the new lender tops the list. Thus borrowers not getting the expected facilities and services from their current lender can choose to go with a lender who can provide comparatively better services. ● ● Essential Documents Required For The Process Since balance loan transfer essentially involves seeking new no credit check loans, the borrowers are required to submit some important documents as listed below. ● Duly signed application form for personal loan balance transfer along with passport size photograph of the borrower. Identity proof of the borrower in the form of PAN card, driving license, passport, voter ID, Aadhaar Card, etc. Age proof of the borrower in the form of any of the documents mentioned above. PAN card copy is mandatory for all borrowers. Address proof of the borrowers in the form of an Aadhaar Card, Passport, Landline Bill, Latest Electricity Bill, Rent agreement, etc. ● ● ● ● Moreover, the borrowers are also required to submit their income proof in the form of documents which might be different for salaried and self-employed individuals and may vary between lenders. Original Source: https://blog.moneyinminutes.in/all-there-is-to-know-about-personal-loan-balance-transfer/