The transfer of the total outstanding amount and debt like credit card balances of an individual’s personal loan from one of his/ her ‘s accounts to another is termed as Personal Loan Balance transfer. People usually opt for a personal loan balance transfer when another bank offers a comparatively attractive rate of interest on the outstanding loan sum. This helps a great deal to ease the burden of a huge interest rate on personal loans.
It still depends on the accessibility, banking rules and regulations, and the most crucial of all- the individual’s credit profile.
Having the opportunity to transfer the loans from one bank to another is a great advantage as it helps its consumers relish better rates of interest, further reducing the monetary load.
It is very important to evaluate the cases in which balance transfer is a good option and then go through it. A few points to keep in mind is:
- Rate of interest: The major and foremost reason for a balance transfer is a better rate of interest. People generally do not compare and in haste accept loans at a higher rate of interest at the start. This misstep can be altered if the individual goes from good credit history to excellent credit history, the chances are that the individual might pass the eligibility criteria for Personal loan Balance transfer with a comparatively lower rate of interest. In a few cases, the amount of the loan might increase.
- Urgent requirement of cash: Personal loan balance transfer always comes in handy during the time of monetary crises. It is advisable to be a little cautious while opting for a personal loan balance transfer and compare and contrast different firms for the same. Persuading the lender might be useful in a few genuine cases.
- Reading documents carefully: It is generally seen that people tend to ignore the documents provided by the lenders, which might lead them to trouble. People should not ignore the documents and files handed over by the lenders and thoroughly go through all the terms and conditions mentioned before accepting anything which could save a lot of hassle in the long run.
- Other conditions provided by the lenders: Individuals should have evident knowledge of any conditions like fees or other extra charges correlated with the loan right from the beginning. A pre-closure penalty is a fee that the individual is bound to pay to the previous lender. Though, it may differ from one lender to another according to their terms. An expense ranging from 1% to 3% of the initial principal amount would be applied as a penalty. It will totally depend on the loan amount if an individual incurs loss or profit through the loan balance transfer. Therefore every aspect should be kept in mind before any decision.
- Keeping a sound mind and being cautious of any fraud: Seeing their loss, the old lenders and financial firms try to lure individuals by proposing them better options and offers. It is not a bad idea to go with the offers, but it is important to be sure and confident about them before accepting them. The most important of all is to make sure if the individual is actually in need of the loan transfer or not. Lower rates of interest might be attractive but only beneficial for the short term. It may lead to unchangeable future losses further leading to a downfall of the credit score.
So, individuals must enjoy the benefits of the balance transfer, keeping in mind the dues.
Personal loan EMI calculator :
The personal loan EMI calculator is a feature of the banks and financial institutions which reduces labour by making it easier for individuals to evaluate the monthly instalments of the personal loan issued.
It is equally applicable to Personal loan balance transfer calculating the benefits that the consumer would receive after transferring the loan amount.
EMI or equated monthly instalment is the key aspect that determines the loan sum and time. The Personal loan EMI calculator helps to calculate this loan amount easily along with the time of repayment, therefore making it a handy job to plan the loan better.
To calculate the EMI using the Personal loan EMI calculator, all one needs to do is mention the loan amount, interest rate, and loan tenure. The EMI will be calculated and displayed immediately in a few seconds.