A personal loan balance transfer has gained peak popularity as the next big thing in the current banking scenario. Every other customer can apply for a personal loan bank transfer for limiting the challenge of going through a whole new procedure of getting a personal loan through another bank. Personal loan Balance Transfer is rather essential for restricting the burden of a loan you might have altogether. Discover below how you can apply for a personal loan balance together.
Basically, personal loan balance transfer refers to the process of transferring your outstanding personal loan balance from one loan provider to another. Originally, this process only included transferring the outstanding balance from one credit card to another. However, it now encompasses personal loans, home loans, and other types of loans too.
Understanding the Eligibility Criteria
To learn how you can apply for a personal loan bank transfer, it is crucial that you know the eligibility criteria for the same. Here are the primary elements of the eligibility criteria that you need to become familiar with.
- The repayment capacity and creditworthiness are important in measuring your balance transfer eligibility. Here is where maintaining a strong and healthy CIBIL score is necessary. It is suggested that you make use of online eligibility calculators for a personal loan to learn if you are eligible for transferring your present loan balance to a different bank or company.
- The current outstanding loan that you have must be of about Rs. 50,000 for initiating the transfer.
- A CIBIL score of 700 or more is required.
- Lenders also generally go through your previous 12 EMI repayments for determining your edibility. Thus, make sure to maintain a timely repayment history.
Documents You Require
Different lenders may ask for different documents when transferring personal loans. Nonetheless, the most common documents you must carry include-
- Passport-size photographs
- PAN Card copies
- Driving license, voter ID, Aadhar Card, etc for age proof
- Driving license, voter ID, Aadhar Card, etc for identity proof
- Rent agreement, Aadhar card, latest electricity bill, landline bill, etc as address proof
- Duly-attested balance transfer application form
- For Salaried People:
- Salary slips from the last 3 months
- Bank statements from the last 6 months
- Present lender’s loan transferring statement
- For Self-Employed People
- TAN card or GST number
- Business and your entity’s bank statement from the last 6 months
- Present lenders personal financing statements and transfer details
- Business loss and profit statements
Benefits of Personal Loan Balance Transfers:
Once you decide to transfer your current personal loan from one lender to another, you can get a better interest rate, and you need to evaluate the personal loan interest offered by the other lender. Lower interest rates are always valuable as they can reduce your financial constraint and help you pay off your loan faster. Here are some of the benefits of applying for the Personal Loan Balance Transfer for the borrowers:
- Low Personal Loan Interest Rate
- Lower Monthly Payments
- Improved Credit Score
- Top Up Loans
- Lucrative Deals
- Better Service
- Greater Features
How Can You Apply for a Personal Loan Balance Transfer
Given below are the steps to apply for a personal loan balance transfer.
- Analyze the present personal loan interest rates from distinguishing lenders and further get insights into your interest savings.
- Determine the approximate cost of the transfer, including elements like processing fees, foreclosure expenses, and so on with the help of a personal loan EMI calculator.
- Compare different lenders’ interest rates, eligibility, and loan procedures and choose the one that suits you the best.
- On choosing your lender, file for a NOC (no-objection certificate) and foreclosure letter from the already existing one.
- Start the application process with your new lender and submit all the relevant documents, along with completing the repayment records.
Additional Read:A Quick Guide to All You Need to Know About Conventional Loans
Choosing a reliable lender is essential when applying for a personal loan bank transfer. This was everything you needed to know about the eligibility criteria of transferring your personal loan and how to apply for the same.
Apart from that factor to keep in mind before opting for a personal loan balance transfer is that you are choosing the right and efficient lender. Several other components are also involved, such as the equated monthly installments, loan processing charges, terms and conditions, additional offers, etc.