Balance transfer is the process of transferring the outstanding loan amount from one bank to another. A personal loan is transferred to get a better interest rate and reduce the monthly EMI burden.
There are several reasons why you must opt to transfer personal loans from one bank to the other:
Want to know more on Personal Loan? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice/education to ensure that you are not misguided while buying any kind of financial products.
In order to avail the facility of personal loan balance transfer, the applicant must fulfill some basic eligibility criteria. They are as follows:
SEE ALSO: 5 Golden Rules To Follow When Taking A Loan
Self Employed:
Banks allow the transfer of credit card accounts, personal loan accounts and home loan accounts. The process is easy and hassle-free and requires you to follow a few simple steps. You must submit an application requesting the transfer of loans to some other bank.
Once the request is raised, the bank will issue a NOC along with a statement that provides details of the loan amount and a letter of consent. The next step is to submit the documents to your preferred lender and wait for approval.
Your preferred bank will verify the documents submitted and then approve the transfer request, once they are satisfied with your track record. The new lender will sanction the outstanding loan amount to the previous bank for the closure of the personal loan. Once the transfer of the loan is complete, the former lender will provide all the documents to the new lender. The loan account will be closed and a new account will be opened with the new lender.
You must keep in mind that the transfer of the loan from one bank to another, means you are taking a fresh loan from the new bank. Therefore, while transferring your existing loan, you have to follow all the procedures like document verification, technical evaluation, payment of processing fees and CIBIL verification.
SEE ALSO: Things To Check Before Availing A Loan?
You May Also Watch
Iframe Content
Keep your Financial Cognizance up to date with IndianMoney App. Download NOW for simple tips & solutions for your financial wellbeing.
Have a complaint against any company? IndianMoney.com's complaint portal Iamcheated.com can help you resolve the issue. Just visit IamCheated.com and lodge your complaint. If you want to post a review on any company you can post it on Indianmoney.com review and complaint portal IamCheated.com.
Be Wise, Get Rich.
This is to inform that Suvision Holdings Pvt Ltd ("IndianMoney.com") do not charge any fees/security deposit/advances towards outsourcing any of its activities. All stake holders are cautioned against any such fraud.