Are you witnessing a tough time in meeting your personal loan EMI commitments due to high interest cost? The only way to reduce your existing personal loan EMI burden is by opting for personal loan balance transfer.
This option allows you to opt for personal loan transfer from one bank to another in lieu of better terms and conditions and lower personal loan interest rate etc., which help reduce your EMI outgo. It acts as an appropriate route to consolidate your multiple loans into a single loan. Personal loan balance transfer lenders also extend the option to avail higher loan proceeds over the outstanding balance. This is known as top up facility.
Here are situations when personal loan online or offline transfer makes sense:
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To secure a lower rate of interest
EMI amount majorly consists of 2 components – principal and interest. Thus, if your rate for personal loan has dropped by over 1 percent during your repayment tenure, opting for a personal loan transfer can act as a lucrative deal to meet your personal loan EMI burden remarkably. Particularly in case if you are in your first half of your loan repayment tenure, opting for a switch can save a considerable amount of interest and consequently, enhance your monthly savings.
To avail better loan features
If your monthly income has enhanced or your mandatory expenses have lowered, you can opt for the transfer option to avail better personal loan features like lower personal loan interest rate, top up facility, customer service and others.
For example, you can shift to a new personal loan lender for shorter repayment tenure to bring down your entire debt cost. In these cases, however, ensure to take help of an online personal loan EMI calculator to know the estimate of the total savings of interest cost before you make the switch.
To get additional funds
Besides offering lower rate of interest, personal loan balance transfer option also permits you to avail additional funds. Thus, if your credit score is at a satisfactory level, you can easily avail this facility to borrow additional funds or enhance your repayment tenure to lower your EMI outgo on previous amount. In this way, you can save considerable money on your monthly outgo comfortably.
Ending note
Personal loan balance transfer is a prudent option where outstanding loan balance of your existing personal loan is transferred to a new lender offering better services and lower interest rates. The facility helps reduce your overall debt burden. Moreover, it also allows you to avail higher funds to meet your financial shortfalls. However, note that as the balance transfer facility is treated as an application for a new personal loan, you must bear charges like processing fees, administrative fees etc.
