Personal Loan Balance Transfer: Nowadays it has become quite common to take a personal loan to meet the domestic needs. Many times it happens that the bank from which we take a personal loan, after some time we start getting higher interest rates. So we don’t know what to do. But now the solution to this problem has come. If you want, you can get the remaining account of your personal loan transferred to another bank with a lower interest rate.
Personal loan can be transferred to another bank
The website of HDFC Bank has given detailed information about this. According to the bank, if any financial institution or bank is offering loan switch or loan transfer at less than the interest rate applicable on your account, then you can take advantage of it.
These formalities have to be done
According to the bank, you will have to do some formalities to get your personal loan transferred. You will have to pay stamp duty on processing fee, foreclosure fee and foreclosure fee (if applicable). After this your loan is transferred to another bank and the remaining installments of your loan have to be deposited in the other bank itself.
Know the benefits of loan transfer
Now let’s talk about the benefits of getting the balance transfer of personal loan in another bank. According to the partner website Zee Business, you can get the repayment period increased or decreased by transferring the remaining loan to another bank. The longer the tenure, the lower the EMI will be but the interest will be higher. On the other hand, if the tenure is reduced, you have to pay more EMI and less interest.
interest rates go down
Another advantage is interest rates. Usually, a person transfers his personal loan to another bank only when his interest rates are low. In such a situation, if you also transfer your personal loan to another bank, then your interest rates will also decrease and you will benefit from it.
The third advantage is that many banks allow you to top-up, that is, to increase the loan amount, along with refinancing the personal loan afresh. At the same time, many banks offer the facility of new loan along with top-up. Due to which your financial position becomes stronger.