For those who don’t know what a loan balance transfer is, please check these blogs;

NBFC Hikes Interest Rates by 2% – It’s time for Loan Balance Transfer!

Steps in Home Loan Balance Transfer Process

Personal Loan Balance Transfer Process

Benefits of Home Loan Balance Transfer

In general, a loan balance transfer is a process where you shift your ongoing loan from the existing lender to the new lender. This can be done because of such rate hikes where you would shift to a lender who offers a lower rate of interest.

A Loan Balance transfer is a long process and there are many facts that the common man can sometimes misunderstand. Hence to ensure everyone is on the same page, we have mentioned 5 such myths and explained the true facts;

Transferring the remaining debt amount isn’t the same as repaying it:

When you transfer a loan balance from one bank to another, it does not mean you have cleared the loan and taken a new one. It only means that you will now repay a lower EMI amount and save more money on interest.

Transferring remaining debt amount is free of cost:

If you think that transferring the debt amount is free of cost, then you are highly mistaken. Usually, there are fees and costs associated with transferring the loan amount. In case you have read your loan agreement properly, the cost of transferring the loan will be mentioned. If you don’t have any fees mentioned in the agreement, then it’s good for you as you can save money.

Transferring debt more than once is good for savings:

Wrong. If you planned to transfer your loan amount for the first time, it would have been due to better interest rates and terms. However going for a repeat transfer would not be advisable as the costs of transferring the loan amount as compared to the savings would not be sufficient enough as per your expectations.

Applying for a balance transfer without lower credit score is fine:

This point must be thoroughly thought on. When you apply for a loan balance transfer with a low credit score, getting a better rate of interest and terms might not be possible. All your negotiation skills would not work unless your score is good. If you have an amazing credit score, Banks would usually provide you with an amazing deal to get you to transfer your loan to their bank.

Hence such myths don’t allow customers to see the clear picture about loan balance transfer. We at Ruloans hope this information helps you make an informed decision. If you need assistance, contact our team for help with a loan balance transfer.

Does that hurt?

Of course it would. When you realize that you could have paid a lesser amount, it’s not a good feeling. But you don’t need to be sad about it. At Ruloans, we realize that purchasing a home is a big decision and with market fluctuations happening on a regular scale, there is a high possibility that interest rates can fall to a lower level.

Your possible savings in such a scenario where loan amount is 30 lakhs for a home loan of 20 years is 5069/- per month. That’s a huge amount you could save each month.

With this, we would also like to shed light on the most recent development;

NBFC have raised their lending rates by 2%

Yes, this news broke out few days ago and there is a lot of turmoil in the market. As a customer, this news means that all your loans taken from an NBFC will cost you 2% more. This would mean a higher EMI.

In this scenario of NBFC raising interest rates by 2%, your possible savings where loan amount is 30 lakhs for a home loan of 20 years is 9342/- per month. That’s a huge amount you could save each month. More than what you could see in the previous table.

Ruloans brings to you the best decision you can make at this moment. That decision is to utilize a “Loan Balance Transfer”.

What is a Loan Balance Transfer?

A loan balance transfer is a process where you shift your existing loan amount from the old bank to a new bank. One of the prime reasons of doing this is because the new Bank offers lower interest rates which mean you can save a lot of money. Apart from lower interest rates, the new lender might give you better terms, waiver on fees which can help you move your loan via a balance transfer.

How can Ruloans help you?

Ruloans understands that this scenario with NBFC rising their interest rates is very difficult for the customer and hence we wish to help them make the right choice. All you need to do is visit our online portal and apply for a balance transfer. Your benefit of applying via Ruloans is that you don’t have to check for options in multiple places. On our portal, you can compare loan options provided by different lenders. You can compare interest rates; terms etc and make the best choice as per your needs.

So, what are you waiting for? Utilize a loan balance transfer today and save money.

With Ruloans, you don’t need to worry about such a situation. We have a solution that can help you lessen your loan burden. The solution is  a “Home Loan Balance Transfer”.

What is a Home Loan Balance Transfer?

A home loan balance transfer is when you shift your ongoing home loan from your current lender to a new lender.

Why would you use this facility?

It is highly possible that your lender might increase the interest rates and this can affect your monthly EMI. Hence you can look for other lenders who have better deals and are offering lower interest rates. Choose the best lender as per your needs and save a lot of interest money. The lender might also help you with better terms and another facility of a top up loan which you can use to fulfill your short term needs.

What are the steps in loan balance transfer process?

Compare options: Have you decided to take a loan transfer? That’s good. Your first job would be to check the number of lenders in the market and check what interest rates the other lenders are offering. Post this, you can also check the different charges and terms that are being offered. After this, compare all these 3 parameters and choose your best lender.

Negotiate with your current lender: Once you have decided the lender of your choice don’t go right away with the process. Please talk to your current lender first. Explain the terms that another lender is offering. Request your current lender to provide you with these terms. If negotiating with them works, then you save yourself a lot of time and money. If the negotiating doesn’t work then you can shift your loan to the new lender and save money.

NOC from current lender: If you have made up your mind on shifting to a new lender, then your next task in the process would be to get a “No Objection Certificate” from the current lender. Once you get that, you can go ahead with the process and talk to the new lender.

Document collection: Once the process begins, it is important that you get all the property documents, post dated cheques (if any) and any other such documents. This needs to be submitted to the new lender. Either this or else your current lender will transfer these documents to the new lender.

Close your loan with the current lender: Once the new lender gets all the documents, they will pay off the remaining loan amount to your old lender.

Repay your new loan at lower EMI: Since the new process has been completed, you can pay your loan EMI which will be low and save more money.

What if you got to hear that the NBFC from where you have taken a loan has INCREASED INTEREST RATES BY 2%?

This news is enough to bring a lot of tension among the masses and the common man will now suffer more than ever. They will now have to pay a higher EMI. But we at Ruloans are here to ensure this does not happen. With over a decade of experience in the loan industry, we are well versed with the trends in the industry. Our customers always come first for us and hence we help our customers borrow right and provide them with services that are much more than money. After getting a home loan or loan against property from us, you can always come back to us for help in such a scenario as we have the best solution for you.

The solution is LOAN BALANCE TRANSFER!!

Yes. Since the NBFC is increasing interest rates by 2%, they have been going through a liquidity problem. Hence as a borrower, you can use the facility of a Balance Loan Transfer where you can shift your current loan from the NBFC to any Bank which offers this facility.

Why should you take Loan Balance Transfer?

With a loan balance transfer there are many benefits to the common man. These are,

Lower Interest Rates – This is the main reason for borrowers to switch their loan from NBFC to a Bank today. Since the NBFC increased their interest rates up to 2%, shifting the loan to a Bank which is offering a lower interest rate will definitely help in saving a lot of interest money.

Lower EMI – The next best benefit for the borrower is post shifting the loan to a Bank, the interest rates are lower and hence there would be a lower EMI which will have to be paid every month. This will help in saving a lot of money which he/she would be paying if they had continued with the NBFC.

A good credit score helps – Yes, if you have a good credit score, it definitely helps. The bank will view you as a credit worthy person and hence will offer you better interest rates, better loan terms and might also waive off few charges too.

Top-up Facility can be provided – Post transferring your current loan from the NBFC to the Bank, your new lender can provide you with this facility where you can get a Top-up loan on your outstanding loan amount. You can use this short term loan amount for debt consolidation or for any of your financial obligations.

Case 1  NBFC 

Case 2 Bank

With this rate hike by the NBFC’s there will be a lot of crisis in the NBFC market and with their liquidity problem rising, it is wise to take the “Loan Balance Transfer” facility and save your hard earned money. With Ruloans, we can help you choose and compare from the best banks available in the market that offer balance transfer. Hence, in case you plan to shift your home loan, loan against property, business loan, personal loan balance transfer from an NBFC to a Bank.