Loan Tips: What is the big advantage of transferring a personal loan to another bank? know here...

By transferring the balance, the interest rate you get on your loan is lower than before. In such a situation, you need to know how right it is for you to transfer the balance.

Benefits of personal loan balance transfer
Banks that provide personal loan balance transfer facilities have lower interest rates. In such a situation, if your outstanding amount is high then by transferring the balance you have to pay less total interest on the loan. At the same time, by transferring your loan balance, you also get the option to choose a longer tenure for your loan. This reduces your monthly EMI burden considerably. Apart from this, you can also get the facility of a top-up personal loan from the new bank.

How to transfer the balance?
Before transferring a personal loan balance, you should compare the current interest rate of the loan and the interest rate of the bank to which you are going to transfer the loan. After this, find out about the remaining charges for the balance transfer, etc. To transfer the loan, you need to take NOC and apply for foreclosure from your previous bank. After this submit the complete documents of repayment. In this way, close your loan account from the previous bank submit your documents to the new bank, and pay the next EMI with it.

What will be the impact on interest and EMI?
If you transfer your personal loan balance from one bank to another, the biggest benefit you get is a lower interest rate. By transferring the balance, the total interest on your loan reduces slightly. Apart from this, while transferring a personal loan balance, you also get the option to extend the loan tenure. By doing this your monthly EMI burden may reduce slightly.

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