Balance Transfer
BALANCE TRANSFER
What is a Balance Transfer?
Balance transfer of loan is the process where a customer transfers his outstanding principal amount to another bank or financial institute primarily for a better rate of interest and also better features. Almost every type of loan – auto, personal, home, education has a balance transfer facility and almost all banks have this facility.
If you have unmanageable outstanding balances on an existing loan or credit card, you can pay it off using a balance transfer.
Personal Loan Balance Transfer
A balance transfer is the process of transferring outstanding balance of a loan from one bank to another. A loan is transferred to save interest and reduce EMIs by switching to a low rate personal loan as well as to avail additional top up loan from the new bank.
Personal loan balance transfer process does not require any security or collateral to be provided by the borrower. Some of the nominal cost that the balance transfer of personal loan involves may be the foreclosure charges that are levied by the current lender.
Features and Benefits:
- Enhanced Rate of Interest.
- Extended Duration on the Loan.
- Increment of loan Facility.
- Flexible Repayment Options – Loan tenures range from 12-60 months for salaried individuals
- Mantra Advisory Doorstep Service – Fix an appointment with any of our representatives on phone and get assistance in completing all the loan related formalities
- Gain quick approval on loans
- Minimal paperwork and hassle free processing. No security or collateral required
Save Money with balance transfer
Home Loan & Loan Against Property Balance Transfer
Home Loan Balance Transfer is the smart process that allows you to take advantage from the lower interest rates as offered by other lenders. If you have an existing outstanding home loan with one lender, you can make a home loan transfer, that is, shift the remaining loan amount to a different lender who charges a lower rate of interest from you.
Features
- Take a Home Loan, to pay off existing Home Loan(s)
- Future payments will be made to the New Bank
- Transfer your existing Home Loan at interest rates that are lower than the original loan
- Top-up the existing loan to get ready cash for any of your needs
- The procedure of acquiring the loan is now easier and the amount payable for your instalments is designed to make you feel comfortable
Benefits
- Your current loan track should be clear without late payments
- Your property value and condition support the parameter of new bank
- Age factor is also very important
- Loans can be applied by individuals, either solely or jointly. Owners of the current property, in respect of which the loan is being sought, will have to be co-applicants. However, the co-applicants need not be co-owners of the Property
It is never too early to Encourage Long-term Savings
Why apply for Balance Transfer on EMI?
- Start saving by switching from Higher EMI of the other bank to Lower EMI of the new bank
- EMI as Flexible Tenure
- Quick Disbursement
- Top-up amount also at Lower Rate with Balance Transfer
- Zero Processing Fee
Mode of Disbursement in the Balance Transfer
The loan amount will be disbursed through a Demand Draft (DD), drawn in favour of the other bank name and loan account number with your name. The DD that will be handed over to you so that you can go to the respective bank to foreclose the same.
FAQ
Balance transfer is the process of transferring your existing loan amount to another bank for the better rate of interest. Basically, you are taking a new loan to pay off your previous loan at a lower interest rate, which helps you to save on the EMIs.
Check with the bank, if they are offering you a better interest rate and calculate how much fees they are charging you, then only you’ll be able to calculate the potential of balance transfer.
Most of the time it does help people to save more on their EMIs but it totally depends on whether the bank, you are planning to transfer your loan, offers you better interest rate with less charges or not. If you were making your payment on times and your records were good with your previous bank, then the new bank will consider offering you less interest rate.
It actually helps you to increase your credit score if taken once, but if you are transferring your loan again and again then it can actually make your credit score look bad because bank will think you can’t pay your loan and that’s why you are just transferring your loan frequently for less interest rate.
Well, it depends on your lender but generally it takes around 7 to 10 days. Moreover, it is recommended to apply online as it takes less time.
Yes, you need to have an activated credit card account then only the balance transfer can happen.
It is advisable to switch the loan early if you want to save more because later on you would have already paid out an ample amount of interest.
Yes, borrowing more money at the time of transferring your existing loan is called Top-up. You can apply for top-up along with the balance transfer, thus, you will get more loan and more time to repay it.
Yes, borrowing more money at the time of transferring your existing loan is called Top-up. You can apply for top-up along with the balance transfer, thus, you will get more loan and more time to repay it.