Balance_Transfer

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Balance transfer is the method in which a customer transfers his outstanding principal sum to another bank or financial institution for a better interest rate and services. The balance transfer facility is applicable for almost every form of a loan - personal, business, home, loan against property, car loan almost all banks have this facility.

Balance transfer comes with an array of features and benefits. Some of them are given below:

Lower Rate of Interest:

One of the key benefits of the balance transfer is that it always provides a better/lower interest rate. A lower rate of interest on the loan transfer would normally be offered by the new lender. This results in the interest burden of the borrower being lowered through the reduction in EMIs.

Longer Repayment Tenure:

Balance transfer helps you renegotiate the loan conditions, such as letting the new lender extend the tenure of the loan repayment. This will minimize the monthly EMI pressure. It can, however, result in higher average interest payouts. Some lenders may also give you the option of reducing your tenure for repayment.While opting for a short term can lead to higher monthly EMIs, it may help to decrease the loan's overall interest payout.

Better Services:

When you are not happy with the current lender or financial institution's services, a balance transfer helps you enjoy better services. With the balance transfer facility, you can opt to go with a new lender who can offer better services.

Minimal documentation:

The balance transfer facility involves an already existing loan; thereby, it involves minimal documentation. This is because the previous lender already completed the KYC and document verification.

Depending on the type of borrower, the eligibility criteria for a balance transfer differ. Here are some of the crucial eligibility criteria for balance transfers that need to be kept in mind:

Age Limit:

The age should be between 18-60 years for salaried and 21-65 years for self-employed.

Existing Loan:

The borrower must have a running loan from another lender.

Loan Amount:

For the balance transfer process, you should have an outstanding loan amount of at least ₹ 50,000.

EMI Record:

Clean EMI payment track record of at least 12 months is required for loan transfer.

Residence Stability:

You must have lived at least 1-2 years in your present residence.

Credit Score:

750 or above with a good credit history

Note - The eligibility criteria explained above can vary from one lender to another.

When applying for a balance transfer, don’t forget to submit the below-mentioned documents required by the lender.

Documents for Salaried

fiber_manual_recordIdentity Proof - PAN Card/ Aadhaar Card/ Voter ID/ Driving License/ Passport 

fiber_manual_recordResidence Proof – Aadhaar Card/ Voter ID/Passport/Driving License/Electricity Bill/Telephone Bill

fiber_manual_recordIncome Proof – the last 3 months of salary slips,

fiber_manual_recordLast 6 months bank statement

fiber_manual_recordOffice Identity Card

fiber_manual_recordForm 16 or Income Tax Returns of the last 3 years

fiber_manual_recordForeclose document from the existing lender (for the loan that needs to be transferred)

fiber_manual_recordStatement of accounts of existing lender

fiber_manual_recordRepayment Schedule

fiber_manual_recordCompletely filled balance transfer application with photograph

Documents for Self-employed

fiber_manual_recordIdentity Proof– PAN Card/ Aadhaar Card/ Voter ID/ Driving License/ Passport

fiber_manual_recordOffice Address Proof – Electricity Bill/Landline Bill/GST or VAT Registration

fiber_manual_recordLast 3 years Income Tax Returns with computation of Income and financial statements

fiber_manual_recordForeclose document from the existing lender (for the loan that needs to be transferred)

fiber_manual_recordStatement of accounts of existing lender

fiber_manual_recordRepayment Schedule

fiber_manual_recordCompletely filled balance transfer application with photograph

The balance transfer process involves three steps:

Step 1: get the foreclosure letter from the existing lender.

Step 2: Submit relevant documents to new lender that prove your income, age, address, and identity. After the submission of the documents, the verification process begins by the new lender.

Step 3: In the verification process, the new lender will check whether you are eligible for the loan or not. If you pass the eligibility criteria set by the new lender, then you get loan approval. Otherwise, your application will get rejected.

Step 4: After getting the approval, the new lender will transfer the outstanding amount of loan to the existing lender.

Tie-ups with Banks/Financial Institutions: We have formed alliances with numerous banks and financial institutions.

Unbiased Expert Advice: We take pride in offering unbiased advice to our customers regarding Balance Transfers and other products. Our specialists use their knowledge of the market to inform you which lender is best for your cause.

Hassle-free Process: You don’t have to worry about visiting banks numerous times to check the loan application status. We handle all the process and keep you in the loop to ensure that you get the updated information.

No Hidden Costs: We don’t charge any fees to the borrower.

Attractive Cashbacks: Receive cashback and vouchers when you are applying for a balance transfer through us.

Step 1: Fill the eligibility form

You must complete the eligibility form in the first step, which involves filling in the following details:

fiber_manual_recordFull Name (As per PAN Card)

fiber_manual_recordMobile Number

fiber_manual_recordEmail Address

fiber_manual_recordCurrent Residence Pincode

fiber_manual_recordEmployment Type

fiber_manual_recordMonthly Income

fiber_manual_recordExisting Loan Type

fiber_manual_recordExisting Bank

Step 2: Select from the multiple offer(s)

Based on the information you provided in Step-1, you will be given a list of lenders by our representative.Pick the lender that you wish to go ahead with from the list. But, please remember to consider the following points when picking the lender:

fiber_manual_recordInterest rate offered

fiber_manual_recordLoan amount

fiber_manual_recordLoan Tenure

fiber_manual_recordEMI

Step 3: Apply for the loan

In this step, you have to give detailed information about your personal details and bank details. Once you submit your loan application, our representative will contact you to cross verify the details before sending the application to the selected lender.

Let’s take a balance transfer example of personal loan to understand better. The below table shows how you can save on the total interest payable:

Particulars Existing Loan New Loan
Outstanding Balance Rs. 3 lakh Rs. 3 lakh
Interest Rate (p.a.) 15% 11%
Remaining Loan Tenure (months) 36 36
Monthly EMI Payable Rs. 10,400 Rs. 9,822
Difference in EMI Payable Rs. 578
Total Interest Payable Rs. 74,386 Rs. 53,578
Total Savings Rs. 20,808

1.

What is the perfect time for balance transfer?

During the earlier tenure of the loan, it is a smart idea to make a balance transfer on your loan.

2.

Do all banks offer balance transfer?

The balance transfer facility is provided by the majority of banks.

3.

How long would it take to make a balance transfer of a loan?

The amount of time banks take to process a balance transfer can rely on the time your current lender takes to close the loan and issue a letter of loan foreclosure. After it is completed, you will have to apply to the current lender for a loan and the loan amount will be disbursed to your account once it is approved.

4.

What all document are required for applying for a balance transfer?

Please refer to ‘Documents Required for Balance Transfer’ section mentioned above.

5.

Do I have to attach any additional security or collateral for balance transfer?

No, there is no need for any additional security or collateral for balance transfer.

6.

What are loan transfer charges?

Besides from rate of interest, other charges are processing fees payable to the new bank, pre-payment or foreclosure fee payable to the existing bank.

7.

What is the repayment tenure for the balance transfer of loan?

The repayment tenure depends on the nature of the loan that you have applied for.

8.

Is there a limit to the amount I can transfer?

Yes. The amount of the balance transfer is equal to the outstanding amount with the existing lender.

9.

By opting for a balance transfer, can I get more money?

Yeah, some lenders offer the option of using a top-up on the current loan when opting for a balance transfer. Top-up helps borrowersto borrow more cash over and above their present loan. Together with balance transfer, applying for a top-up helps them to use more money and more time to repay it at lower than previous interest rates.

10.

Does balance transfer help me to improve my credit score?

Actually, it helps you raise your credit score if taken once. Still, if you transfer your loan repeatedly, it will actually make your credit score look bad because the bank may believe you can't afford your loan, and that's why you often transfer your loan for less interest rate.

11.

Is it possible to merge two of my existing loans through balance transfer?

Of course! If you have two or three loans altogether and tired of individually paying too many installments, then balance transfer is the most incredible savior for you. It will combine them all for a better interest rate into a single loan.