Personal Loan Balance Transfer & Its Various Use

Ever-versatile Personal Loans can help you obtain funds for all expenses – from medical emergencies to leisurely spending. These easily accessible loans offer flexible repayment tenures, too. But what do you do if you find another lender offering the loan at a lower interest rate after you have already obtained a loan and started paying EMIs? You can opt for a Personal Loan Balance transfer. Let us understand the meaning and uses of this unique loan.

A Personal Loan Balance Transfer allows you to move your existing loan from one bank to another. This option is beneficial if you find a lender offering a lower interest rate, which can reduce the overall cost of your loan.

Opting to transfer your Personal Loan to another bank can prove incredibly useful. Here's how:

1. Interest Rate Reduction

Transferring your Personal Loan to a bank offering a lower interest rate can lower your EMIs and save you money. However, before making the switch, it is essential to compare the new interest rates with the associated costs, such as processing fees, transfer fees, and foreclosure charges.

Read more about Personal Loan EMIs by clicking  here. 

2. Top-up Facility 

Personal Loan interest rates on Balance Transfer may reduce when you switch lenders but you can also utilise this facility to obtain more funds. As such, you can enjoy a top-up loan that grants you access to a higher loan amount at renewed, lower interest rates. If you need more funds, opting for a Personal Loan Balance Transfer may make financial sense rather than taking on another brand-new loan.

3. Increased Repayment Tenure

Another benefit of opting for a Balance Transfer is the possibility of an extended repayment tenure. Your new lender treats the transferred loan as new, allowing you to adjust the repayment period and choose a longer tenure with lower EMIs. This flexibility helps you manage your monthly budget more effectively.

4. Better Services 

You may benefit from a Personal Loan Balance Transfer if you believe that the services offered by a new lender are better than those provided by your current lender. For example, transferring your loan might be advantageous if you need EMI payment reminders, timely updates, or improved customer service. Additionally, if you prefer online payments with standing instructions over post-dated cheques, consider transferring your loan if your current lender cannot meet these needs.

5. Exciting Offers

Many banks provide lucrative offers on Personal Loan Balance Transfers. Some may offer discounts on the loan processing fee, while others may waive it altogether. Sometimes lenders offer to pay off the loan foreclosure fee on your behalf or give you a waiver on your last EMI, but all these options are contingent on the offer applying to you at the time of the balance transfer.

If you are looking for a Personal Loan Balance Transfer at low interest rates, your search may be at an end with HDFC Bank. Our simple loan transfer process and access to Top-Up Loan facilities ensure your credit needs are met when you choose to bank with us. If you are looking forward to a Personal Loan Balance Transfer at low interest rates, you can start your journey with us by clicking here. 

*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Personal loan at the sole discretion of HDFC Bank Limited. Loan disbursal is subject to documentation and verification as per Banks requirement.