How Personal Loan can be a Great Financial Support for you?

Various reasons and aspects are justifying personal loans as great financial support. In this article, we will be talking about personal loan balance transfer and some tips for choosing the best personal loan. We hope that this will help you. So, let’s dig in:

Personal loan Balance Transfer 

Benefits of Personal Loan Balance Transfer

  • Longer Tenure of Repayment: A borrower may benefit from improved loan repayment tenure by moving the loan. 
  • Better characteristics: Choosing a personal loan refinancing option will allow you to get better offers from the new lender, which could be in the form of a lower interest rate, low processing cost, etc.

Steps for Personal Loan Balance Transfer 

  • Step 1: Check the latest interest rate that you can get and calculate the interest savings on your loan.
  • Step 2: Calculate the estimated loan conversion rate, including different fees.
  • Step 3: Calculate the net advantages and determine whether or not you want to move your loan.
  • Step 4: Compare and verify the interest rate offered, the eligibility for your loan number, and your entire loan process.
  • Step 5: If you want to go through with the balance transfer, apply for an existing lender’s NOC and foreclosure letter.
  • Step 6: Apply to the new lender for a loan and submit the loan documents with a full repayment record.
  • Step 7: Obtain a letter of sanction and conduct the revised loan agreement with the new creditor.
  • Step 8: Take the disbursement from the new lender in favor of an existing lender via cheque/ demand draft and deposit the same with the current lender. 

Eligibility Criteria for Personal Loan Balance Transfer

The eligibility criteria for a personal loan balance transfer remain the same as a personal loan and differ from lender to lender. 

  • Age: The applicant’s age at the time of the personal loan application should be a minimum of 21 years and a maximum of 60 years.
  • Working experience: A borrower should have a minimum of 2 years of working experience and must work for a minimum of 1 year in the current organization.
  • Employment: A borrower should operate with a private or public sector organization such as national, state, or local authorities, either as a self-employed or as a salaried person.
  • Income: The applicant must have Rs. 15,000 minimum net income. If he/she resides in Delhi, Mumbai, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad, Kolkata, and Cochin city metro, the income should be at least Rs. 20,000 per month.

Taking a Personal Loan is a perfect way to get funds quickly for a wide variety of needs. If it’s a wedding, education for a child, a medical emergency, travel, or some other necessity, a personal loan is the best alternative. It’s a line of credit available that helps you to fulfill the need for the hour. In a matter of seconds or hours, you can get the funds easily, with minimal paperwork.

You will repay the loan in simple monthly installments for some time, either months or years. To sum up, any urgent financial need, whether for emergencies or otherwise, will help with a personal loan.

There are a lot of personal loan options open, so how do you choose the best personal loan in India?

Let’s look at how to deliver the best personal loans:

  • Levels of interest: The interest rate is the first thing you want to remember when taking out a personal loan. In your opinion, the best personal loans are those that offer the lowest interest rates. Your best bet would be to go to a reputable bank; you would be paid an arm and a leg by your friendly neighborhood moneylender. Significant variations in interest rates occur within banks. So, shopping around for a bit and comparing the interest rates provided by various banks is a good idea. You can do this online very quickly. What you need to note, however, is that banks give varying rates to various customers based on factors such as how stable your income stream is, etc. Interest rates are important as even small percentage variations for some time will contribute to the cost of your loan.
  • No collateral: Any personal loan is unsecured. You don’t have any collateral to put for your loan. If you do not have or want to pledge any assets that you may have to get a personal loan, this works for you. Secured loans where you pledge properties could be the alternate options, as the interest rates could be lower. Plus, there’s no need for you to think about low credit scores. If that is not an option, it is suitable for personal loans.
  • Minimal paperwork: Those that you can get with a minimum of hassle might be the best personal loans. For instance, the last thing you want to do is send a lot of documents and fill in a lot of forms when you’re in a rush to get some cash. Well, you do not have to do that anymore, thanks to the Internet, and you can apply for a loan from the comfort of your house. 

One from your bank might be the best personal loan. They’re going to have all your personal and economic data, so they don’t have to bother with too much checking. And in those days of internet banking, in no time at all, you could get the money into your account.

  • Tenure: How will the right personal loan be chosen? The tenure of the loan is one of the important items you must remember. From your point of view, the best loan is one that correlates to your time requirement, whether you need a loan for a few months or several years. The amount of EMI (equal monthly installments) you pay will depend on the loan’s tenure. Lower EMIs, but more interest payouts, would mean a longer stay. Choose a bank that helps you to be flexible about your tenure.
  • Loan Amount: The best personal loan is the one with the correct amount. There is no point in going to a bank whose upper limit is Rs. 10 lakhs if you need a loan of Rs. 20 lakhs.
  • Processing Fees: The entire cost of the loan is calculated by the interest rate on your personal loan and the processing fee. Until you decide, you should weigh all factors.

Conclusion:

You can find various lenders offering personal loans at low interest and personal loan balance transfer facility. However, from which you should apply for a personal loan is completely depends on your requirements and eligibility.