What is a Personal Loan balance transfer?

Personal balance transfer of loans is a method by which the borrower transfers the entire outstanding personal loan amount from one institution to another. This usually happens when the a bank lowers the interest rate (than the existing bank) on the due loan amount. The aim is to reduce interest rates.

Your cash flow may be limited when an emergency strikes at any particular time. In such a case of desperation for money, you may take a personal loan at a higher rate.

Once the immediate need for money is sorted, you can transfer the loan to another bank (offering a lower interest rate on the due loan) to reduce your EMI, to reduce the interest burden.

Some documents are needed for a personal loan balance transfer. The loan agreement (if Required) will incur foreclosure charges, processing fees and stamp duty at a normal expense.

How Does a Personal Loan Balance Transfer Work?

In a personal loan transfer from one bank to another, your new bank pays off your existing loan. If your current loan comes with a prepayment clause, you may have to take that charge in such a case. Alternatively, you may have to pay a processing fee for your new loan. However, having a new loan will increase your savings and offset these costs with a lower interest rate.

Benefits of Loan Balance Transfer:

• Low-interest rates: The primary benefit of the balance transfer feature is that the interest rate is decreased, which decreases how much interest is charged to the borrower via EMI. In general, new lenders will offer lower interest rates on loan transfers.
• Time of loan repayment: When a personal loan is transferred from one bank to another, the term of the existing personal loan can be reduced or extended. You can extend or shorten the loan repayment period depending on the requirements. The installments are to be set accordingly.

Other features:

• This benefit records your previous payments
• Depending on your CIBIL score and constantly changing revenue dynamics
• Some lenders charge zero processing fees
• Low-interest rate
• It can a provide great feature like waiver of certain installments. The personal loan balance transfer facility can reduce the interest on the personal loan and give the applicant better loan facilities in the deal.

Increase new loan facility:

• Many banks offer top-up loans with personal loan transfers.
• Banks and Financial Institutions (NBFCs) offer new and top-up loans for competitive and low-interest rate personal loans.

How does Nowofloan help to get a long term loan?

• Personal loan of up to Rs. 15 lakhs in 5 minutes
• Get Instant personal loan offer from multiple banks
• Low annual percentage rate starting from 12.5%

How to proceed?

Why Apply for Instant Personal Loan Online at Nowofloan.com?

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