Instant Personal Loan Balance Transfer

A personal balance transfer loan allows borrowers to shift their existing loan from one lender to another. When opting for a loan, a borrower carefully compares interest rates and tenures and, finally, selects an EMI amount that works best for them. After a while, the borrower may find better rates and more favourable terms from another lender. A personal loan transfer facility enables the borrower to take advantage of better loan terms and move their remaining repayable amount to the new borrower.

The first step of a personal loan transfer from one bank to another is to confirm the eligibility of the borrower at the new bank. This is followed by the form submission and documentation. Once all formalities are done, the new bank pays off the remaining loan to the old bank. For a balance transfer loan meaning the foreclosure of an existing loan, some banks may charge a particular fee — a percentage of the outstanding balance. With the previous loan settled and the account closed, the borrower now continues with the new payment schedule at the new bank.