If you feel that your bank is charging you too much interest on a personal loan, then you can choose the option of Personal Loan Balance Transfer. This can give you a lot of relief.

Many times such a situation arises that you need money very much, but money is not arranged from anywhere, then you take a personal loan and manage the work. Personal loan is easily available, so it is also called an emergency loan. But the interest on personal loans is very high. In such a situation, the person finds it very difficult to repay it later. If you have also taken a personal loan and you feel that your bank is charging you too much interest on personal loan, then you can choose the option of Personal Loan Balance Transfer. This can give you a lot of relief.

Know what is balance transfer

Balance transfer is a method through which you can transfer your running loan from one bank to another. Most people take this decision to get relief from the increased interest rates of the loan. If your credit score is good, then other banks easily offer you a cheaper loan than the current interest rate. Due to the low interest rate, your EMI also decreases.

What are the other benefits of balance transfer?

The first advantage of balance transfer is to get a better interest rate than the current interest rates on the running loan, so that the burden of EMI can be reduced.

The second advantage of this is that by using the balance transfer facility, borrowers can choose a longer tenure than the remaining tenure of their existing personal loan. The longer tenure also reduces the EMI. However, due to this the borrower may have to pay more interest.

The third advantage is of top up loan. Many banks also provide the facility of top-up personal loan to those who transfer their existing personal loan. A top-up personal loan enables customers to borrow more money over and above their existing loan.

Fees at the time of balance transfer

Personal loan balance transfer does not require any collateral deposit to the new bank. However, you do have to pay foreclosure fees and loan transfer charges to your existing bank. Apart from this, you may have to pay stamp duty, loan processing fees and other fees to the new bank where you are transferring your loan, which is usually charged at the time of applying for a new personal loan.