– A Promise of Security and Peace –
Personal Loan Balance Transfer (PLBT) facility offered by lenders to existing personal loan borrowers of other bank and NBFCs to transfer their existing personal loan at lower interest rates. Apply now today to find the best coverage to get started.
| Car Loan Details | |
|---|---|
|
Interest Rate (Monthly reducing balance) |
Starts from 8.70% p.a. |
|
Guarantor Requirement |
Varies with bank |
|
Pre-closure Charges |
Varies with bank |
|
Loan Tenure |
1 year to 8 years |
|
Processing Fee |
Depends on the bank |
– On This Page –
When you opt for a personal loan balance transfer, the interest rates offered by the new lender are typically lower than those charged by your current lender. The interest rate provided by the new lender will also be influenced by factors such as your outstanding loan amount, loan tenure, credit score, income, and other elements of your credit profile.
| Bank | Max. Loan Amt. | Rate of Interest | Tenure up to | Processing Fee | Special Features |
|---|---|---|---|---|---|
| HDFC Bank | Up to ₹40L | 10.5% - 24% | Upto 6 Years | ₹4,999 | Check Eligibility, 10 Second Disbursal*, 100% Digital Process*, Quick Disbursal |
| Axis Bank | Up to ₹40L | 10.99% - 22% | 1-5 Years | Upto 2% | Check Eligibility; Low Processing fee |
| Kotak Mahindra Bank | Up to ₹40L | 10.99% - 36% | Upto 6 Years | Upto 3% | Check Eligibility; Lowest Income requirement; 100% Digital Process* |
| IDFC First Bank | Up to ₹10L | 10.99% - 23.99% | Upto 5 Years | Upto 2% | Check Eligibility; Max Loan Amount; 100% Digital Process* |
| ICICI Bank | Up to ₹50L | 10.8% - 16.15% | 1-6 Years | Upto 2% | Check Eligibility; 100% Digital Process*; Quick Disbursal |
| Yes Bank | Up to ₹40L | 10.99% - 20% | Upto 5 Years | 0% - 2.5% | Check Eligibility; 100% Digital Process*; Quick Disbursal |
| Bajaj Finserv | Up to ₹40L | 11% - 38% | Upto 8 Years | Upto 4% | Check Eligibility; Max Tenure; 100% Digital Process* |
| Tata Capital Limited | Up to ₹35L | 10.99% - 35% | Upto 6 Years | 0.0% - 5.5% | Check Eligibility; 100% Digital Process* |
| Standard Chartered Bank | Up to ₹50L | 12% - 17.5% | Upto 5 Years | Upto 3% | Check Eligibility; 100% Digital Process*; Quick Disbursal |
| IndusInd Bank | Up to ₹50L | 10.49% - 26% | 1-5 Years | Upto 4% | Check Eligibility; Lowest Income requirement; Quick Disbursal |
| Federal Bank | Up to ₹5L | 12% - 19.5% | 1-4 Years | 1.5% - 2.5% | Check Eligibility; Lowest Income requirement; 100% Digital Process* |
| RBL Bank | Up to ₹5L | 18% - 26% | Upto 3 Years | Upto 2% | Check Eligibility; 100% Digital Process*; Quick Disbursal |
| DMI Finance | Up to ₹25L | 12% - 45% | Upto 5 Years | Upto 4% | Check Eligibility; Quick Disbursal; 100% Digital Process* |
Your existing lender may charge a foreclosure fee of up to 5% on the outstanding loan amount if the original personal loan was obtained at a fixed interest rate. However, lenders do not impose any foreclosure fees on personal loans with floating interest rates. When transferring your personal loan, the new lender will charge a processing fee ranging from Rs. 500 to 4% of the outstanding loan amount.
The following table illustrates how a personal loan balance transfer can help you save on the total interest payable:
| Original Loan Amount | Rs. 5 Lakh | Rs. 10 Lakh |
|---|---|---|
| Existing Rate of Interest | 15% p.a. | 15% p.a. |
| Original Repayment Tenure | 60 months | 60 months |
| EMI already paid | 12 | 12 |
| EMI to be paid | 48 months | 48 months |
| Existing EMI | Rs. 11,894 | Rs. 23,789 |
| Outstanding Loan Amount | Rs. 4,27,416 | Rs. 8,54,819 |
| New Rate of Interest | 11.50% p.a. | 11.50% p.a. |
| New Tenure | 48 months | 48 months |
| New EMI | Rs. 11,150 | Rs. 22,301 |
| Total Savings | Rs. 35,712 | Rs. 71,424 |
Lower Rate of Interest: One of the main reasons to consider a personal loan balance transfer is to secure a lower interest rate, which can significantly reduce your overall interest costs.
Longer Repayment Tenure: Utilizing the personal loan balance transfer option may allow borrowers to extend their repayment tenure beyond the remaining term of their current loan. While this can lower monthly EMI payments, it may result in a higher total interest cost over time.
Access to Top-up Personal Loans: Many lenders provide top-up personal loans to borrowers who transfer their existing loans. This facility can benefit those who have been unable to secure a top-up loan or have been facing higher interest rates on such loans.
Borrowers wishing to opt for a personal loan balance transfer may need to submit the following documents:
For Salaried Individuals:
For Self-Employed Individuals:
The Equated Monthly Installments (EMIs) that you will pay will depend on a few key factors.
The higher the loan amount, the higher your EMI will be. Similarly, the shorter the loan tenure the higher the EMI.
To calculate the EMI on your car loan, you can use the formula:
EMI=P×R×(1+R)N(1+R)N−1\text{EMI} = \frac{P \times R \times (1+R)^N}{(1+R)^N – 1}
where:
Manual calculations can be error-prone, complex, and time-consuming, so using an online personal loan EMI calculator is preferable. This calculator requires only a few basic details such as the interest rate, loan amount, and loan tenure.
Once these details are entered, the EMI amount is calculated instantly. Additionally, the calculator provides the total interest amount and an amortization schedule for easy reference.
The process for a personal loan balance transfer typically involves the following steps:
Research Interest Rates: Check the current interest rates offered by other lenders and calculate potential interest savings.
Evaluate Transfer Costs: Assess the estimated costs associated with the loan transfer, including any applicable charges and fees.
Consider Net Benefits: Weigh the overall benefits and decide whether to proceed with the balance transfer. Create a shortlist of lenders to whom you might transfer your existing loan.
Compare Lenders: Compare the interest rates, loan eligibility, and loan processes of the shortlisted lenders.
Obtain Required Documents: Once you’ve chosen a new lender and decided to proceed, request a No Objection Certificate (NOC) and a foreclosure letter from your current lender.
Initiate Application: Start the application process with the new lender by submitting the required loan documents along with your repayment history.
Receive Sanction Letter: Upon approval, obtain the sanction letter and sign the new loan agreement with the lender.
Disbursement: Receive the disbursement of the outstanding loan amount from the new lender via cheque or demand draft, made out to the previous lender.
Account Closure: Once the previous lender receives the outstanding amount, they will cancel all cheques and ECS instructions, closing your personal loan account.
This facility is available to existing personal loan borrowers who meet the eligibility criteria of the new lender.
When you apply for a personal loan balance transfer, the new lender will check your credit report to assess your creditworthiness. Such lender-initiated checks are considered hard inquiries, which can reduce your credit score by a few points. Applying to multiple lenders within a short period can cause a more significant drop in your score. Instead of directly applying to multiple lenders, consider using online financial marketplaces like Paisabazaar.com. These platforms perform soft inquiries, which do not impact your credit score.
The repayment tenure for a balance transfer can range from 12 to 60 months.
Yes, many lenders offer the option to avail a top-up personal loan when you opt for a balance transfer. This allows you to borrow more money on top of your existing loan.
No, collateral or security is not required for a balance transfer, as it is an unsecured loan similar to a personal loan.
