A personal loan balance transfer is the process of transferring your existing outstanding personal loan from the current lender to the one that offers lower interest rates. In simple words, a new lender will repay your existing personal loan, and you can continue to pay your loan EMIs to the new lender at lower interest rates. Does it sound like a good deal? If you are caught in a loan with the highest interest rates, you can consider a personal loan balance transfer.

Why should you think of a personal loan balance transfer?

• Reduced Rate of Interest

Many borrowers opt for personal loan transfer mainly because of its lucrative interest rates. Not only the interest rates, but many lenders also offer the best deals in miscellaneous charges. Lowering the interest rate will proportionately lower your monthly expenses, thereby helping you close the loan sooner. 

• Extended Loan Tenure

By transferring your loan balance, you can negotiate the loan tenure with the new lender after reevaluating the loan based on your current budget. Suppose your existing loan is burdening your finances. In that case, you can opt for a longer tenure to obtain a smaller EMI. Likewise, if you are better positioned to pay a higher EMI, you can shorten the term and repay the loan sooner. 

• For Attractive Benefits and Upgrades

A borrower switches to a new lender when they find the offers more lucrative than the current one. Most lenders offer deals in the form of lower interest rates, zero processing charges, zero prepayment charges etc., customized based on your credit profile.

• A Top-Up on Your Existing Loan

If you have a good credit score, you can even use the balance transfer as a debt consolidation loan by opting for top-up loans above the current loan at lower interest rates. 

Apart from these, a loan transfer on any type of loan eases your debt burden if you currently pay higher personal loan interest rates. Evaluate your choices and choose an established NBFC to opt for a home loan balance transfer and avail of its benefits.

Must Read: 5 Reasons why To Choose a Personal Loan Over Another Type of Debt