Personal Loan Balance Transfer Starting @ 10.50* Upto 40 Lakh*
Transfer your personal loan at a competitive interest rate of 10.50%. Avail loan amounts up to ₹40 lakh with lower EMIs and reduced interest burden. Apply now!
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What is a Personal Loan Balance Transfer?
A personal loan balance transfer is a process of transferring your existing personal loan from one lender to another lender offering a lower interest rate. In simple terms, it is like refinancing your personal loan. When you transfer your personal loan, the new lender pays off your outstanding loan amount to the previous lender, and you start repaying the loan to the new lender.
Comparison of Personal Loan Balance Transfer Interest Rates of banks (2024)
| Bank/NBFC | Interest Rate (p.a.) |
|---|---|
| HDFC Bank | 10.50% onwards |
| Axis Bank | 10.49% onwards |
| ICICI Bank | 10.65% onwards |
| SBI | 10.55% – 14.55% |
| IndusInd Bank | 10.65% – 14.99% |
| Yes Bank | 11.50% – 15.00% |
| Standard Chartered Bank | 11.99% – 15.99% |
| IDFC First Bank | 10.75% onwards |
| Kotak Mahindra Bank | 10.99% onwards |
| Bandhan Bank | 12.75% – 19.75% |
| Punjab National Bank | 11.25% – 13.75% |
Personal Loan Balance Transfer Interest Rates of NBFCs (2024):
| NBFC | Interest Rate (p.a.) |
|---|---|
| Tata Capital | 10.99% onwards |
| InCred | 10.50% – 15.50% |
| Finnable | 11.49% – 16.49% |
| Aditya Birla | 14.00% – 18.00% |
| PaySense | 12.99% – 29.99% |
| Poonawalla Fincorp | 11.75% – 17.75% |
| SMFG India Credit (Fullerton) | 10.75% – 16.50% |
| LendingKart | 10.99% – 19.99% |
| Axis Finance | 11.25% – 17.25% |
| Mahindra Finance | 11.50% – 18.50% |
| Bajaj Finance | 11.00% – 16.00% |
| L&T Finance | 12.00% onwards |
Eligibility criteria for Personal Loan Balance Transfer
- Nationality: You must be an Indian citizen or a resident with valid documentation.
- Age: Minimum age is usually 21 years and the maximum can range from 60 to 80 years depending on the lender and your employment status.
- Employment: You must be employed with a stable income source, either salaried or self-employed. Salaried individuals typically have an easier time qualifying.
- Credit Score: A good credit score (generally 685 or above) is crucial for approval. A higher score gets you better interest rates.
Documents Required for Personal Loan Balance Transfer
The documents required for a Personal Loan Balance Transfer (PLBT) typically fall into three categories:
1. KYC Documents:
- Identity Proof: PAN card, Aadhaar card, Voter’s ID, Passport, Driving License (any one)
- Address Proof: Passport, Utility Bills (electricity, water, phone), Leave and License Agreement (any one)
2. Income Proof:
- Salaried Individuals: Salary slips for the last 3 months.
- Self-Employed Individuals: Income Tax Returns (ITRs) for the last 2 years, bank statements reflecting business income for the last 6 months.
3. Loan-Related Documents:
- Statement of your existing personal loan: This document details your current loan balance, interest rate, tenure, and outstanding EMIs.
- Foreclosure statement (optional): Some lenders may require this document from your existing lender to confirm the foreclosure charges and prepayment penalties associated with closing your existing loan.
- Bank statements for the last 6 months: This helps the new lender assess your financial history and spending habits.
Additional Documents (may be required by some lenders):
- Employer ID card (for salaried individuals)
- Proof of investment or fixed deposit (for self-employed individuals)
- Guarantor details (if applicable)
Remember:
- Each lender may have slightly different document requirements. Always check with the specific lender you are interested in for their exact list.
- Ensure all documents are clear, legible, and valid.
- Submitting complete and accurate documents helps expedite the processing of your PLBT application.
How to Balance Transfer Your Personal Loan?
If you have decided to transfer your personal loan, here are the steps you need to follow:
Step 1: Check your Eligibility: Before applying for a personal loan balance transfer, you need to check your eligibility. Different lenders have different eligibility criteria, such as minimum income, credit score, etc. You can check the eligibility criteria on the lender’s website or by contacting their customer care.
Step 2: Compare Interest Rates: Once you know your eligibility, you need to compare the interest rates offered by different lenders. You can use online loan comparison websites to compare the interest rates and other features of different lenders.
Step 3: Apply for Balance Transfer: After selecting the lender, you need to apply for a personal loan balance transfer. You can do this online or by visiting the lender’s branch. You will need to submit documents such as identity proof, address proof, income proof, and the loan statement from your existing lender.
Step 4: Get Approval: Once you apply, the lender will verify your documents and check your credit score. If you meet the eligibility criteria, the lender will approve your application.
Step 5: Pay Processing Fee: After the approval, you must pay a processing fee to the new lender. The processing fee is usually a percentage of the loan amount, and it varies from lender to lender.
Step 6: Loan Transfer: After paying the processing fee, the new lender will pay off your outstanding loan amount to the previous lender, creating a new loan account. You will start repaying the loan to the new lender as per the terms and conditions.
Personal Loan Balance Transfer Charges
| Charge Type | Description | Amount/Range |
|---|---|---|
| Processing Fee | A fee charged by the new lender for processing the balance transfer application | 0.5% – 2% of the loan amount |
| Prepayment/Foreclosure Charges | Fee charged by the existing lender for closing the loan before the tenure ends | 2% – 5% of the outstanding loan amount |
| Stamp Duty | Legal stamp duty for loan agreements in some states or regions | ₹100 – ₹500 (varies by state) |
| Late Payment Charges | Penalty for missed EMI payments during the loan tenure | 1% – 2% of the due amount |
| Legal/Documentation Charges | Additional charges for loan documentation processing | ₹500 – ₹2,000 (varies by lender) |
| Interest on Remaining EMIs | Interest for any unpaid EMIs until the loan balance transfer is completed | As per the original loan interest rate |
Things to Keep in Mind While Transferring Your Personal Loan
- Check the Total Cost: While a lower interest rate is attractive, you need to check the total cost of the loan, including processing fees, prepayment charges, etc.
- Compare Features: Apart from interest rate, you should also compare other features such as prepayment charges, loan tenure, repayment options, etc. These features can affect your overall borrowing experience.
- Check for Hidden Charges: Some lenders may charge hidden fees such as foreclosure charges, documentation charges, etc. Make sure you read the terms and conditions carefully and check for any hidden charges.
- Don’t Apply to Multiple Lenders: Applying to multiple lenders at the same time can hurt your credit score. It is advisable to compare the interest rates and other features of different lenders before applying to a single lender.
- Check the Reputation of the Lender: Before applying for a personal loan balance transfer, you should check the reputation of the lender. You can read customer reviews, check their ratings on loan comparison websites, and consult with financial experts.
- Don’t Miss EMIs: After transferring your personal loan, it is essential to pay your EMIs on time. Missing EMIs can hurt your credit score and affect your future borrowing ability.
SBI personal loan Balance Transfer
| Feature/Charge | Details |
|---|---|
| Interest Rate | Starting from 10.30% per annum (may vary based on the applicant’s profile) |
| Processing Fee | 1.5% of the loan amount + applicable taxes |
| Prepayment/Foreclosure Charges | Nil (for individuals) |
| Loan Tenure | Up to 72 months |
| Eligibility | Salaried and self-employed individuals |
| Loan Amount | Based on eligibility and repayment capacity |
| Collateral/Security | No collateral or security required |
| Documents Required | ID proof, address proof, income proof, loan statements, etc. |
| Repayment Options | Easy EMI options (via ECS, NACH, or post-dated cheques) |
| Processing Time | Quick processing (typically 3-7 working days) |
HDFC personal loan balance Transfer
| Feature/Charge | Details |
|---|---|
| Interest Rate | Starting from 10.50% per annum (may vary based on the applicant’s profile) |
| Processing Fee | Up to 1% of the loan amount + applicable taxes |
| Prepayment/Foreclosure Charges | 2% – 4% of the outstanding principal + applicable taxes |
| Loan Tenure | Up to 60 months |
| Eligibility | Salaried individuals (with minimum income criteria) |
| Loan Amount | Based on eligibility and existing loan amount |
| Collateral/Security | No collateral or security required |
| Documents Required | ID proof, address proof, income proof, bank statements, loan statements, etc. |
| Repayment Options | Flexible EMI options via ECS, NACH, or post-dated cheques |
| Processing Time | Fast processing, usually within 3-5 working days |
Aditya Birla personal loan balance transfer
| Feature/Charge | Details |
|---|---|
| Interest Rate | Starting from 14% per annum (may vary based on applicant’s profile) |
| Processing Fee | Up to 2% of the loan amount + applicable taxes |
| Prepayment/Foreclosure Charges | Up to 4% of the outstanding principal + applicable taxes |
| Loan Tenure | Up to 60 months |
| Eligibility | Salaried and self-employed individuals |
| Loan Amount | Based on eligibility and repayment capacity |
| Collateral/Security | No collateral or security required |
| Documents Required | ID proof, address proof, income proof, existing loan statements, etc. |
| Repayment Options | Easy EMI options via ECS, NACH, or post-dated cheques |
| Processing Time | Typically 5-7 working days |
FAQs
Can personal loan balance transfer?
Yes, you can transfer the outstanding balance of your existing personal loan to another lender. A personal loan balance transfer allows you to shift your loan to a new bank or financial institution, usually to benefit from lower interest rates or better loan terms, helping reduce your overall interest burden.
Who is eligible for a balance transfer?
To be eligible for a personal loan balance transfer, you must have a good credit score (typically 700 or above), a stable income, and a positive repayment track record. Additionally, most lenders require that you have paid a minimum number of EMIs (usually 6-12) on your existing loan before initiating a transfer.
Can you transfer the balance of a loan?
Yes, many types of loans, including personal loans, home loans, and credit card balances, can be transferred to another lender. This process is called a balance transfer, and it’s done to take advantage of lower interest rates, better repayment terms, or special offers from new lenders.
Should I use a balance transfer or personal loan?
A balance transfer is typically more beneficial if you’re looking to reduce the interest rate on an existing loan or consolidate multiple debts. However, a personal loan might be more suitable if you need additional funds or want a fresh loan without transferring an existing one. The decision depends on your financial needs, current loan conditions, and interest rate offers.
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