Easy Steps To Transfer Personal Loan - Personal Loan Blog - Tata Capital

Personal Loan

Easy Steps To Transfer Personal Loan

Feb 28, 2017

You might have planned your finances diligently and with utmost care. But there will be situations where you are caught unaware and have unexpected bills to pay urgently. At such junctures, when you have very few options left to arrange money, personal loans can come in handy.

But once you have taken a personal loan, you need to pay the EMIs that include principle repayments as well as interest payments. It is then your duty to find options that can help you reduce your interest costs and EMIs. This is possible if you can transfer you personal loan to a financial institution, which offers lower rate of interest.

Suppose you had taken a personal loan of Rs 2.5 lacs for 3 years (@20%). Now your initial EMIs are about Rs 9300. If you decide to transfer your remaining loan after 1 year to a lender offering rates of 14%, then your EMI will reduce to about Rs 8650. This would mean a total saving of Rs 13,000 during the 3-year loan. This is the reason why you need to actively look for opportunities to transfer your personal loan.

Steps

  • Call as many lenders as possible to get an idea about the balance transfer schemes available with them.
  • You will need to provide details of your existing personal loan, principal amount left, tenure completed, rate of interest, etc. Generally, a 12-month repayment track record is required before allowing balance transfer.
  • The lender chosen by you will finally ask you to submit the required documents which can include salary slips, bank statements, identity proof, PAN card, address proof, etc.
  • Once the lender has done processing your personal loan application and your case has been found to be credit worthy, the lender will sanction the loan and disburse the amount.

Remember that it's very important to have a good credit score at the time of applying for loan transfer. If you have not been regular with your repayments in the original loan, the new lender might not be interested in transferring your personal loan.