During emergencies we don’t think twice before spending and end up taking a personal loans at a high rate of interests. A lot of people often make this mistake, but there are ways to turn around this too. After your emergency is over, you can look at consolidating your debts at a lower rate. A balance transfer is easy and it saves you money.
Standard Chartered offers Personal Loans at attractive rate of interest, with 0 documentation. Click here.
Transferring your personal loans or personal loan balance transfer is a process by which you can transfer your outstanding personal loan amount from one lender to another one which is offering a lower interest rate on the outstanding loan amount. Of course, you need to carefully compare rates and check between different banks to ensure you get the lowest rate of interest and thus save on total interest payable. Also, keep an eye out for any processing charges during balance transfer.
Let’s look at a few benefits of transferring your personal loan:
Better interest rate: The main benefit of transferring your personal loan is that it reduces the interest rate and thereby lowers the interest burden through lower EMIs. Let’s take an example to understand how transferring personal loan can reduce the total interest outgo.
Ravi, a public relations executive has availed a personal loan of Rs 5 lakh for 3 years at a rate of 15% per annum. Using the personal loan EMI calculator, this means he is paying an EMI of Rs 17,332 towards his personal loan. He would pay a total interest of Rs. 1,23,952 for the entire tenure. Now, let’s assume after paying 12 installments, Ravi decides to transfer his loan with a lender such as Standard Chartered that’s offering him a lower rate of interest of, say, 12%. His principal outstanding amount at the end of 12 months is Rs 3.57 lakh.
On completing the personal loan transfer, the monthly EMI will drop to Rs 16,805 and the total interest payable on the remaining money will drop to Rs 46,326. He has already paid an interest of Rs 65,465. So, his total interest is Rs 1,11,791, which is Rs 12,185 lesser than what he would have had to pay had he been with his previous lender. This means he is saving over Rs 12,000 on interest after transferring his personal loan to Standard Chartered.
Tenure change: While transferring the personal loan from one lender to another, you can negotiate the tenure of the existing personal loan. So, according to your convenience, you can extend or decrease the repayment tenure of your personal loan. When you extend the tenure, you have lower EMIs to pay, and with shorter tenures, your overall interest burden decreases. So, it’s a win-win situation for you.
Top-up loan facility: Often banks allow a top-up loan facility when you transfer a personal loan from an existing bank. This is especially helpful just in case you are in need of more credit. You can also avail more credit if you transfer your existing personal loan balance from your bank to a different bank Standard Chartered offers Personal Loan Top Up at attractive interest rates without complicated documentation either. In fact, if you apply for a personal loan online at Standard Chartered, you get a 50% waiver on processing fee, too.
Unhappy with the current bank: If you are dissatisfied with the services offered to you by the current bank, you can transfer your personal loan balance to another bank. By transferring your personal loan to a bank such as Standard Chartered you get the opportunity to avail a whole lot of features and benefits. To know more about Standard Chartered Personal Loans, click here.
So, have you been thinking of transferring your personal loan? Why wait, Now that you are aware of all the benefits of a personal loan balance transfer.