A balance transfer is as the name suggests. It allows you to transfer your remaining outstanding balance to another bank at a much lower, or sometimes even 0% interest rate over a fixed period of time, which is often offered by banks to new customers. Of course, there may be processing fees involved which would impact the EIR, but if you make your repayments on time on the new card, you can avoid traditional credit card interest rates. Taking on a balance transfer plan on a credit card essentially buys you more time to pay off the loans without worrying about paying high interest.
Balance transfer plans are often offered in 3, 6, or 12-month repayment periods, and require you to pay a minimum amount (about 2.5 or 3% of your remaining outstanding balance) each month. At Standard Chartered Bank, this amount can be as low as 1%. In the final month of the balance transfer loan period, you are expected to pay off the remaining amount in full.