How a Personal Balance Transfer Loan Can Be Your Lifesaver Fincover®
Are you feeling overwhelmed by your existing personal loan? It’s a common problem faced by many people. Many people, especially salaried employees, face difficulty with personal loan repayment, especially during months when unexpected expenses wreak havoc on their repayment schedule.
A Balance transfer can be the perfect solution for such instances. What does balance transfer mean? With Balance transfer, you can transfer the existing personal loan to another lender at better terms – from affordable interest rates and repayment to longer tenure. It is a brilliant strategy to consolidate your debts, reduce your payments, and set you financially free.
What is a Balance Transfer Loan?
A Balance transfer loan is a type of personal loan that allows you to transfer the outstanding personal loan to a new lender with a better interest rate. Balance transfer is an excellent way to reduce your EMI burden and lower interest over some time. By consolidating your loans into a balance transfer loan, you can secure a loan at a better interest rate, making it easier to settle your debt.
How Does a Balance Transfer Loan Work?
The process of getting a balance transfer loan is relatively simple. You must declare the new loan to the new lender while applying. If approved, the lender will provide a lump sum, allowing you to close your old debts and leaving you with a single loan with affordable repayment terms. The lender will typically charge a balance transfer fee, so consider that.
What are the benefits of a Balance Transfer Loan?
There are several advantages to using a balance transfer loan to manage your debt:
Lower Interest Rates: The most crucial benefit of a balance transfer loan is the potential for a lower interest rate. If your existing personal loan interest rate is high, then transferring that balance to a personal loan with a lower interest rate can significantly reduce your EMI
Consolidation: A Balance transfer can consolidate multiple loans into a single debt, thereby saving you from interest charges and other loan-related charges for each loan.
Flexible Repayment Terms: The primary purpose of opting for a BT personal loan is to benefit from flexible repayment terms, allowing you to choose a repayment schedule that fits your monthly budget
Improved Credit Score: Making on-time repayments towards your balance transfer loan would improve your credit score.
Things to Consider Before Applying for a Balance Transfer Loan
While a balance transfer may sound like an enticing option, there are things that you need to consider while opting for a personal loan
Balance Transfer Fees: Most lenders charge a balance transfer fee, which may be higher. At Personal Loan aggregator sites like Fincover, you can compare the balance transfer loan rates from multiple lenders
Interest rates: Choose the bank with the best balance transfer personal loan interest rate. Ensure you compare rates from various lenders to get the best possible deal.
Repayment terms: While opting for a new lender, make sure to read all the terms of the balance transfer loan, as you can miss out on crucial elements by opting not to read.
Steps to Apply for a Personal Loan Balance Transfer via Fincover:
Step No. Action Description
1 Visit Fincover Website Go to the official Fincover website or download their mobile app.
2 Loan Balance Transfer Section Navigate to the “Personal Loan Balance Transfer” option from the available loan categories.
3 Check Eligibility Fill in the necessary details (like current loan amount, EMI, etc.) to check your eligibility.
4 Compare Offers Fincover usually provides various offers from different banks and NBFCs; compare rates and terms.
5 Select Preferred Lender Choose the lender that offers the best terms for your balance transfer.
6 Submit Documents Upload necessary documents (ID proof, income proof, current loan details, etc.) for verification.
7 Approval & Loan Transfer Once approved, the new lender will pay off your existing loan and issue a new loan with better terms.
8 Start Paying EMIs Begin paying EMIs to the new lender under the new terms provided.
Eligibility Criteria for Balance Transfer Personal Loan
You can apply for the personal loan balance transfer by fulfilling the conditions.
You must be between 21-58 years old
You should have at least one year of work experience in the current team
You must have a minimum monthly income of Rs. 20000
Documents required for Balance Loan Transfer-
To avail of a balance loan transfer of personal loan, you need to submit the following documents:
- Existing loan details
- ID Proof – Aadhar Card/Voter ID/Driving License/Proof
- Address proof – Passport, Ration Card,
- A Copy of your salary slip and bank statement for six months
- A certificate that proves you have been employed in the current organization for one year at least
Conclusion
If you’re struggling with personal loan repayment, a balance transfer loan may be the best option to eliminate the vicious debt trap. However, it’s essential to research and compare offers from different lenders in an online financial state. By carefully considering the benefits and drawbacks of a balance transfer loan, you can decide whether it’s the right solution for your financial needs.