Credit Wisdom

Things You Will Want to Know about Personal Loan Balance Transfer

Category: Personal Loan

A great option to save money

Balance transfer personal loan is indeed very beneficial for those who have taken the loan. Unfortunately, not a lot of people are aware of this facility and hence they are not able to take advantage of it. By transferring the balance to the other bank you are able to reduce the interest rate and hence save the money during the remaining tenure of the loan. It is advisable that anyone who has a loan should opt for loan transfer.

A lot of times, our financial condition stabilizes and gets better as compared to what it was at the time of borrowing. By opting for the balance transfer of the personal loan you can re-evaluate your finances and take the necessary steps to clear other existing debts.

You can get more loan amount

One of the benefits of transferring the balance is that you can get the top-up on your existing loan. This is particularly helpful when you are in need of more money but do not want to borrow further at the existing, higher interest rate. By transferring the balance and opting for top-up you can get additional loan amount at the lower interest rate. This could mean considerable amount of savings in the long run.

How to go about it?

If you are looking for the best deal on the balance transfer, it is best to look around and speak to a few banks before making the final decision. Visit the website of the banks or call their customer service and learn more about their deals and schemes. You will get to know about the interest rates they provide on the balance transfer and how it will benefit you in the longer run. There are some banks that charge an additional processing fee. However, as compared to the savings, it is almost negligible.

What documents are required?

The documents required for the balance transfer are usually the same as the ones required for the application of the new loan. However, additional documents from the existing bank or financial institution from where you have taken the loan will also be required. If you are a salaried person you will be asked to provide the copy of the salary slip for last 3 months, bank statement for last three months, PAN card, address and identity proof and passport size photographs. The banks may ask for additional documents depending upon various factors.

It is best to contact the bank and ask for the specific requirements for the documents.

The personal loan balance transfer is an option available to all and offered by all the banks.

Tags: Personal Loan Articles