Benefits of Personal Loan Balance Transfer

A personal loan transfer is also known as refinancing or balance transfer from one bank to another. Most individuals opt for this option to avail the benefits of lower interest rate in the market. Usually, the existing borrower does not get the benefits of lower interest rate even after the rate cuts by RBI. Hence it is better to transfer the balance amount of loan from one bank to another where lower interest rates are prevalent. There are several benefits of switching loans from one bank to another which are as follows:- First and foremost if the existing bank does not agree to reduce the interest rate even after RBI rate cuts and the EMI amount remains the same then in such cases it is always better to switch to banks which offer less interest rates and reduced EMI’s or longer duration for repayment. Usually the interest rate on personal loan is very high and continuing with the same interest rates can drain out a lot of your savings. Therefore it is always advisable to transfer the balance amount to banks offering lesser interest rate at an early stage to repay lesser EMI. Some banks charge minimal or zero processing…