What is a Balance Transfer?
A balance transfer is the process of transferring outstanding balance of a loan from one bank to another. A loan is transferred to save interest and reduce EMIs by switching to a low rate personal loan as well as to avail additional top up loan from the new bank.
Balance Transfer Personal Loan
Balance Transfer of personal loan entails multiple benefits to the borrowers, which include
- You get lowest interest on personal loan balance transfer starting @ 11.25%
- You can reduce your EMI outgo by 5 – 8% by transferring personal loan
- You can also avail top up loan to pay down high cost credit card dues or meet any other personal expenses such as travel, vacation, medical, marriage or even purchasing a car
- You can get quick personal loans of up to 5 years with minimal documentation and without any guarantor
Savings on balance transfer
Suppose, you have an existing personal loan outstanding amount of Rs. 2 Lakh for a tenure of 48 months. You can transfer your existing personal loan to a new bank at lowest rates. By transferring a 4 year personal loan of Rs. 2 lakh from 14.5% to 11.25%, your EMI can reduce from Rs. 5,516 to Rs. 5,193. Total savings on interest after balance transfer is Rs. 15,464.
Illustration of Interest Savings with Balance Transfer
|Existing Loan||New Loan|
|Balance Outstanding||Rs. 2 Lakhs||Rs. 2 Lakhs|
|Rate of Interest (ROI)||14.5%||11.25%|
|Loan Tenure Remaining (months)||48||48|
|Monthly Reduction in EMI||Rs. 322|
|Total Savings||Rs. 15,464|
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