A personal loan transfer allows a customer to transfer his or her personal loan from current lender to a new lender. By transferring your personal loan balance, you can get the benefit of lower interest rate on the outstanding loan amount. The process to transfer a HDFC Bank personal loan from one lender to another is very simple and quick. Most lenders offer a balance transfer facility for a personal loan. Here is what you need to do to transfer your personal loan.
Transfer Process
Personal loan balance transfer from the existing lender to a new lender is simple and hassle-free and needs minimal documentation. You need to collect the information about outstanding principal amount, EMIs paid till date, current interest rate, and on whose name the demand draft has to be made from your current lender. Once you get the information, you can approach the new lender to apply for a balance transfer of your personal loan.
You need the following documents to transfer your personal loan from existing lender to a new lender.
For Salaried Employees:
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Completed personal loan balance transfer form with passport sized photographs
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Statement of the personal loan, which is being transferred, from the current lender
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Salary slips for the last three months
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Bank statements for the last three months showing salary is being credited
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Identity proof: any of – voter ID card / Aadhaar card, passport, driving license
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Address proof: any of – telephone bills / electricity bills / water bill (for the last three months)
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PAN Card
For Self-Employed Individuals:
Other than completed balance transfer form, statement of the personal loan, and PAN card, a self-employed person needs to submit the following documents.
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TAN Card
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Balance Sheet and Profit & Loss Statements, with relevant annexures and schedules
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Current account statements of the business
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Savings Account statements of the individual
Every lender has a creditworthiness assessment that includes your repayment history and account details. If you have a good to excellent credit score and required debt to income ratio, your application for a personal loan balance transfer will be accepted.
However, before applying for a personal loan balance transfer, consider the following points.
Calculate the profits and convenience: You should assess the benefits and convenience you can get from a personal loan balance transfer. It is important to know how much can you save by transferring your personal loan. Use online personal loan balance transfer calculator to calculate the saving.
Consider the cost involved: As sometimes a personal loan balance transfer may cost you more than what you save from it, it is necessary to consider the interest rate and other charges the new lender is offering for the balance transfer.
Read the fine prints carefully: It is always advisable to read the terms and conditions of a personal loan before signing the personal loan balance transfer agreement. The fine prints may contain some hidden charges.
Benefits of a Personal Loan Balance Transfer Include:
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Better interest rates: It is one of the biggest benefits of the personal loan balance transfer.
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Top-up loan facility: Personal loan balance transfer allows you to get a top-up loan during balance transfer.
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Extended duration: If you are not comfortable to pay your existing EMI, you can get an extended duration to repay your personal loan.
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Better Services: If you are not satisfied with the services offered by the current lender, you should transfer your loan to a new lender that offers better customer services.
The procedure for a personal loan balance transfer is now very easy and a new lender may offer a number of benefits.
Check More Possibilities on SBI Personal loan app
