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Solutions that work for your best Interest - Balance Transfer Loan

Balance transfer is a process where a customer transfers the total loan outstanding from one bank to another. It usually happens to avail of lower rate of interest on the outstanding loan amount, better tenor option, Higher Top-up amount and better services with new lending institution.

Balance transfer loan option does not impact the credit score. Rather shifting of debt from one lender to another is done with a objective to lower the EMI burden, avail of better offer on ROI / Tenor / Amount etc.

Balance transfer loan is product specific and helps the client to avail of better loan options. Below are the industry common products in which we can see prominent Balance Transfers happening across geographies.

Balance Transfer - Personal Loan
Normally the client looks for better interest rates in personal loan. This being an unsecured loan option, balance transfer usually happens after payment of 9 or 12 EMI's. The client not only enjoys lower rates and higher loan amount thru top-up facility but also gets his entire loan tenor revised as per his needs.

Balance Transfer - Home Loan
Home loan is the most sought after secured loan product. Both normal Home loan and Affordable Housing Loan are covered under balance transfer loan option. It is advisable to transfer a home loan when the loan amount is higher. The loan transfer process is simple: you just need to close your loan account first with the existing lender and then pay a transfer fee to your new bank. Your new bank will pay off the existing loan and you have to pay to the new lender in equated monthly installments at a new rate of interest. You can only transfer your home loan to another bank any time after the lock in period ends for the same. The lock in period for a home loan usually ranges from 6 months to 1 year.

Balance Transfer - Mortgage Loan
You can transfer your mortgage loan outstanding amount to new lender. You need to close your loan account first with the existing lender and then pay a transfer fee to your new bank. Your new bank will pay off the existing loan and you have to pay to the new lender in equated monthly installments at a new rate of interest.

Balance Transfer - Business Loan 
Today Business loan option are available under unsecured business loan and secured business loan. You can easily shift your business loan from one lending institution to another to avail of better ROI, extended tenor and flexible repayment terms. Other factors like income, turnover, expansion plans, liabilities are taken into account while computing the revised loan with new lending institution along with repayment track with existing lender. The loan is evaluated accordingly and best rates and terms are offered to close loop the deal

Balance Transfer - Used Car Loan 
You can transfer your existing car loan to new lender and can avail of loan up to 175% of the car valuation. You need a No Objection Letter (NOC) from the previous bank. You will also need to check with the new lender if another additional NOC from RTO is also required and make sure that the hypothecation changes from the old lender to the new lender.

Balance Transfer loan option thus enables you to avail of better ROI, longer tenor option, better servicing, and higher loan amount thru top-up option with new lending partner.

Key Benefits of Balance Transfer Loan

  • Better Rate of Interest
  • Longer Repayment Tenor
  • Higher Loan amount thru Top-Up Option
  • Host of other benefits and servicing
Thus we can conclude that Balance Transfer loan option is applicable to - Home Loan | Mortgage Loan | Personal Loan | Used car Loan | SME-MSME Loan | Affordable Housing Loan | Business Loan | Education Loan | Doctor Loan | Equipment Loan etc.

Key terms - Balance Transfer Loan
Balance transfer loan | Home Loan Balance Transfer | Mortgage Loan Balance Transfer | Used Car Loan Balance Transfer | Personal Loan Balance Transfer | Education Loan Balance Transfer | SME-MSME Loan Balance Transfer | BT Loan | Business Loan Balance Transfer