What Is a Personal Loan Balance Transfer?

A personal loan balance transfer is the option to transfer their existing personal loan balance from one lender to another. It happens when a different lender offers lower interest rates, better service, top-up loans etc. Though the offer will look lucrative, you must evaluate the offer before taking personal loan balance transfer. So, here are few factors that you need to consider:

Important Factors to Know Before Taking a Personal Loan Balance Transfer

• Consider The Processing Fees and Surcharges

While transferring from one lender to another, you may be charged a certain processing charge by the old lender to close the previous loan account. You should calculate these additional charges to determine if the transfer is still worth it.

• Check Terms and Conditions

Read the terms and conditions that the new lender offers you before signing the deal. Ensure that there are no hidden clauses before taking the decision.

• Evaluate The Revised EMI And Tenure

The people transfer their loan from one lender to another due to lower instalments offered. However, one must learn the tenure they offer as extended tenure will lead to an overall higher payment.

• Additional Offers

Some lenders offer pre-approved personal loans and additional discounts on financial products when you opt for a balance transfer. Sometimes you end up availing of services that are not required to avail the offer. So, think twice if you require those additional policies even though the offer is attractive. 

While personal loan balance transfer is undoubtedly excellent for reducing your financial burden, it is imperative to think twice and judge if the lucrative offer is beneficial. 

Additional Read: Avail Personal Loan of up to Rs 10 lakh with Easy Tenure with Fullerton India