Get the Tata Capital App to apply for Loans & manage your account. Download Now

Blogs SUPPORT
Loans For You
Loans for Business
Investment
Insurance
Apply
Quick Links for loans
Quick Links for Insurance
Investment
Offers Quick Pay
Back

Equipment Finance

Avail Digital Equipment Loans
up to Rs. 1 Crore

  • Attractive ROIs
  • Customizable Loan tenure
Know More
Back

Equipment Leasing

Avail Leasing solutions
for all asset classes

  • Up to 100% financing
  • No additional collateral required
Know More
Menu  
 
Apply Now

Tata Capital > Blog > Personal Use Loan > All You Need to Know About Personal Loan Balance Transfer

Personal Use Loan

All You Need to Know About Personal Loan Balance Transfer

All You Need to Know About Personal Loan Balance Transfer

Ravi was short on funds, so he decided to opt for a personal loan. However, after a couple of months, he realised that the monthly instalments were taking a toll on his budget. So, Ravi switched to a new lender that offered a lower interest rate and repaid the outstanding amount with smaller EMIs.

This is basically called a loan balance transfer or loan refinancing. It allows you to shift debts from one lender to another for preferential loan terms, such as lower interest rates.

When should you apply for a balance transfer?

You can opt for a loan balance transfer, if:

  • You are paying hefty EMIs: A lower interest rate will decrease the interest component of your EMI amount, thereby reducing the overall EMI value. Besides, you can use a personal loan EMI calculator to determine the new EMI value and estimate how much you can save on interest over your remaining tenure.
  • You are dissatisfied with your current lender: If you're unhappy with the services provided by your current lender, you can switch to a new one offering more desirable terms like no processing fees, zero prepayment charges, etc.
  • You want a top-up on your existing loan: If you require extra cash and have a good credit history, you can avail of a top-up facility by refinancing your loan.
  • You want to improve your credit score: You can transfer your loan to secure more favourable terms and repay your loan faster and timely. This, in turn, will improve your credit score.

Additional Read: How to Apply for a Personal Loan Balance Transfer?

Documents checklist

If eligible, you will need to submit the following documents for the personal loan balance transfer process:

  • A duly filled application form
  • The loan statements and transfer details of the current lende0072
  • Passport-size photographs
  • An identity proof, such as voter ID, Aadhaar card, passport, etc.
  • Copies of your PAN Card
  • Your age proof, such as your driving license, Aadhar card, voter ID, passport, etc.
  • Your address proof, such as your rent agreement, latest electricity bill, etc.

Additional documents for self-employed people:

  • GST number or TAN card.
  • The balance sheet for the past 3 years, along with profit and loss statements
  • Bank statements for the last 6 months of the business entity and the individual

Additional documents for salaried persons:

  • Bank statements of the last 6 months
  • Salary slips of the past 3 months

How to apply?

  1. Compare lenders to find the personal loan balance transfer lowest interest rates.
  2. Check your eligibility.
  3. Estimate the total cost of loan refinancing by including the processing fee, foreclosure charges, and other fees.
  4. After finalising the new lender, you must file for a foreclosure letter and obtain a No-Objection-Certificate (NOC) from your current lender.
  5. Apply for a transfer to your new lender and submit the mandatory documents.

Additional Read: 4 Reasons to Go for a Personal Loan Balance Transfer with Tata Capital in 2021

Over to you

Do you think that your loan terms are unsatisfactory? Then switch to Tata Capital! We offer loans at competitive interest rates and provide flexible repayment options without collateral. Need more flexibility? Don't worry, our overdraft facility has got you covered.

Learn more about our personal loan eligibility terms here.

Apply Now
Disclaimer

Leave a Reply

Your email address will not be published. Required fields are marked *

Most Viewed Blogs

Trending Blogs

Calculator

Personal Loan EMI Calculator

Personal Loan EMI Calculator
Home Loan EMI Calculator

Home Loan EMI Calculator
Business Loan EMI Calculator

Business Loan EMI Calculator
Used Car Loan EMI Calculator

Used Car Loan EMI Calculator
Two Wheeler Loan EMI Calculator

Two Wheeler Loan EMI Calculator
Loan Against Securities Calculator

Loan Against Securities Calculator
Loan Against Property Calculator

Loan Against Property Calculator
More Tools
Our Subsidiaries
Our Other Websites

Important Information

Investor Information

Visit us on:,Visit us on: www.tatacapitalmoneyfy.com,www.tatacapitalmoneyfy.com

Our Private Equity Funds

Amalgamated Companies

Top Branches

Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Policies, Codes & Other Documents

Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Tata Capital Solutions & Services

Uh oh, something went wrong

Please try again later.