The balance transfer in personal loan is used when you move the outstanding balance of your loan from one bank to another. It happens when a different bank gives the remaining sum a cheaper interest rate. But do you know how it works? If not, you can read the process I mentioned below for you.
What is the Personal Loan Balance Transfer Process?
It allows a borrower to transfer the outstanding loan amount from one lender to another. Here are the steps for a balance transfer in a bank loan.
The process begins when the borrower identifies a new lender offering better interest rates or flexible terms.
After comparing offers and checking eligibility, the borrower applies for a balance transfer with the new lender.
The new lender then assesses the borrower's credit score, repayment history, income, and remaining loan tenure.
If the borrower meets the eligibility criteria, the new lender approves the transfer and pays off the outstanding loan amount directly to the existing lender.
Once the old loan is closed, the borrower repays the new lender based on the revised terms.
The key benefits of a personal loan balance transfer include:
Lower interest rates, which reduce the total interest payable.
Reduced EMIs, making monthly repayments more affordable.
Top-up loan facility, where the new lender may offer additional funds.
Improved loan terms, such as longer tenure or better customer service.
I hope you understand how to do balance transfer of personal loan.
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How Does Balance Transfer Works in Personal Loan?
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2025-05-17T15:53:38+00:00 2025-05-17T15:53:40+00:00Comment
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