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Personal Loan Balance Transfer

Ruloans offers you various options to choose from, for a Personal Loan Balance Transfer, which allows you to take advantage of better and lower interest rates, and better loan periods of tenures. A personal loan balance transfer offers you the opportunity to transfer the total outstanding amount of your personal loan from your present lender, to a new lender of your choice who offers you better terms and conditions, and facilities to profit from such a process.

A Personal Loan Balance transfer does not require any security or collateral when you transfer personal loan from one bank to another. Your current lender will charge you a foreclosure or prepayment charge stipulated in your loan agreement. In the course of transfer, your new lender may charge processing fees and stamp duty on your loan agreement, if applicable.

If you are dissatisfied with your current lender, and your relationship does not seem right, you can choose for a host of options offered by Ruloans. However, before choosing the right alternative, evaluate the offerings based on not only interest rates, and loan tenures, but also look for hidden costs such as processing fees, and other charges that increase the cost of your personal loan. Before taking a balance transfer decision, also consider the lender's reputation and compatibility with your service expectations.

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Eligibility Criteria

Ruloans offers you a range of lenders who offer you loan balance transfer facility, and the eligibility criteria may vary accordingly. However, the basic criteria such as your repayment capacity or creditworthiness, etc., are the same, some of which are discussed in brief below. You may use Ruloans' Personal Loan Eligibility Calculator to determine you eligibility for a loan balance transfer.

  • Age
    • Salaried: 21 years to 60 years of age
    • Self Employed: 21 years to 60 years of age
  • Employment
    • Salaried:Employee of any Private, or Public Company, or Public Sector Undertaking with 1 year to 3 years of Experience, and 1 year with Current Employer
    • Self Employed: Person with Income as Stipulated by the Lender with 3 years of Experience
  • Income
    • Salaried:Minimum Rs. 15,000 for Mumbai, or Delhi Resident, and Minimum Rs. 20,000 for rest of India
    • Self Employed:Turnover of Minimum Rs. 24,00,000, and differs for Professional and Non-Professionals
  • Other
    • You need to have Credit Score of minimum 750
    • Your current outstanding loan amount must be at least Rs. 50,000 to initiate the Balance transfer process
    • You must have clean record of 12 EMI payments
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Documents Required for Loan Balance Transfer

A Lender carries out credit-worthiness assessments on the basis of the documents submitted on application. The Personal Loan Balance Transfer process will only take place after such verification. Here are some common documents that you may be required to produce in case you opt for a Personal Loan Balance Transfer.

Documents Required

Signed Application Form

  • Application Form

Photographs

  • Passport Size Photographs

Photo Identity Proof/ Age Proof

  • PAN Card
  • Driving License
  • Passport
  • Voter ID
  • Aadhaar Card

Residence or Address Proof

  • Aadhaar Card
  • Passport
  • Latest Landline Telephone Bill
  • Latest Electricity Bill
  • Rent Agreement

Salaried Individuals

If you are a salaried person, you will need to provide the following documents along with the other common documents.

  • 6 Months Bank Statement
  • 3 Months Salary Slip
  • Statement of Current Personal loan from Lender

Self Employed Individuals

If you are a self-employed person, you will need to provide the following documents along with the other common documents.

  • PAN Card / GST Number
  • 3 Years Balance Sheet with Profit and Loss Statement
  • Individual and Business 6 Months Bank Statement
  • Statement of Current Personal loan from Lender

Balance Transfer Charges

When you choose to transfer the outstanding balance of your existing personal loan, you will have to pay a few charges depending on the bank or NBFC you've taken the loan from. Your current lender will charge you an amount when you transfer personal loan to another bank, and the new lender will charge you another amount for processing your personal loan balance transfer. The charges other than personal loan balance transfer interest rate chargeable in brief are as follows.

Foreclosure Charges

The amount charged by your existing lender for transfer of the outstanding amount of your personal loan to another lender may be known as a Foreclosure Charge. A foreclosure charge levied on your principal loan outstanding varies from lender to lender from 0% to 4%. Some even charge a flat foreclosure charge based on the loan agreement.

Processing Fees

Processing Fees are another feature of a Personal Loan Balance Transfer that has to be paid; which may be a flat fee, or Rs. 500 to 4% or your loan amount. Your new lender will charge you this fee to cover costs of stamp duty agreement, etc., if applicable.

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Calculation of Personal Loan Balance Transfer

Before you consider a Personal Loan Balance Transfer as an option, you may use Ruloans' Personal Loan Balance Transfer Calculator online to compute your EMIs, and the interest amount payable. This tool enables you to compare and match the interest rates, loan tenures, and other charges to opt for the best balance transfer on offer.

For best personal loan balance transfer offers, use Ruloans' EMI calculator for Interest Rate charges, and Eligibility Criteria, or to simply apply for balance transfer personal loan, click here.

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