Everything you need to know about personal loan balance transfers

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Personal loan balance transfer is a smart way to manage your debts. A balance transfer comes to your aid when you are unhappy with your current lender. This could be because of a high interest rate, poor customer service or attractive offers by another lender. In recent times, personal loan balance transfer has emerged as one of the most popular debt management tools in India. This growth has also been fuelled by the easy and convenient lending services available today. You can check out the best offers through a loan app and get your loan transferred within minutes.

A loan app helps you get a balance transfer through instant loan. Read on to know more about personal loan balance transfers.

When should you consider balance transfer?

A balance transfer comes at a cost that the borrower has to bear, so, you must think it through before opting for a balance transfer. Here are some of the situations when opting for a balance transfer can be beneficial for you –

  • When you are getting lower interest rates

The interest rate on a loan is the single most important factor that impacts your total payout on the loan amount. If you are stuck with a loan that came at a much higher interest rate, then you can opt for a balance transfer to a new lender that’s offering the loan at a much lesser interest rate. You can keep a check on the loan app for great deals on interest rates.

  • When you are getting better services 

Getting stuck with a lender partner that has poor customer service can be a big pain. Not getting regular updates, having to visit the branch for your queries, not having auto debit facility and other such issues can result in a bad overall experience. If the lender makes a mistake on updating your credit profile then that can impact your credit score. Thus, it makes total sense to get your balance transferred if you are dissatisfied with your current lender’s services. There are multiple lenders in the market that offer great features, attractive interest rates and prompt customer service. If you go for a loan app, then you get complete transparency and 24 X 7 assistance through their app.

  • When you are expecting a change in income

Income level fluctuation is one big problem for everyone and more so for people who are self-employed. When you take a loan, you must always have three to four months of EMIs saved as security in case of job loss or other personal issues. This will allow you to take care of any unexpected income level changes and ride out the bad period with your savings. You can also check out the loan app for a balance transfer as that would allow you to avail a new finance on better terms. You can opt for a longer tenure and lower your EMI burden.

  • When you need more time to pay off the loan

When you take a personal loan, you are given a schedule as per which you will have to pay off the loan in monthly installments. However, the plan that was made when loan was taken may not seem very feasible down the line and you may find yourself in a situation where you need more time to pay off the loan. In such a case, it is a very good idea to do a balance transfers towards an instant loan because it will allow you to spread the loan payment timeline towards a later date.

  • When you need to get ready to take a larger loan

If you have need of extra funds but do not think that taking out a full-fledged loan for the same might be a good idea, you can consider doing a balance transfer. In such a case what will happen is that you will get enough money to pay off your previous loan as well as the extra money will be given you for your own need. Now you take the money and pay off your previous loan and you are left with only one EMI that is of the new loan.

Why choose a loan app for personal loan balance transfer

  • Loan app is faster and simpler: The biggest advantage of moving your loan to personal loan app is that its entire process is much simpler and faster. Unlike a conventional lender which requires all application and processing work to be done by paper forms, an app based lender will do all these things over the internet. This means you will not have to worry about a lot of documents or for weeks about the loan decision.
  • Loan app offers attractive processing charges: The entire loan application processing through a loan app is digitalized, which means that not only is the entire process much faster, but it is also much cheaper. Since lender cost for loan processing is much lower in an app, they also tend to pass on the benefit to the borrower in the form of attractive offers on loan processing costs.
  • Loan app offers better interest rates: Finally, the overall operational cost of an app based lender is much lower because they do business online and do not have the cost of maintaining multiple office locations and hundreds of staff. This keeps their cost of doing business lower and allows them to offer loans at much more attractive interest rates compared to conventional lenders.

Your Takeaway!

Always keep in mind that balance transfer is a specialised financial movement and should be used carefully and sparingly. It is not meant for, nor should it be used for infinite credit rotation as the same will severely impact your credit score.