MyLoanCare is a FREE of cost service for borrowers

Get Cashback of Upto ₹ 1,000* on Personal Loan Apply Online

MyLoanCare Customer Ratings - 4.5/5.0

Personal Loan Balance Transfer to SBI, HDFC, Axis, ICICI Bank, Bajaj

Personal Loan Balance Transfer Offers

Last Updated 14th Aug 2020

6th August 2020 – RBI keeps Repo Rate unchanged at 4%

Existing personal loan borrowers should consider Personal Loan Balance Transfer to another bank, if they are paying 0.5% to 1% higher interest rate on current personal loan rates in India or are looking to avail a top up loan. Personal loan balance transfer are available at interest rates starting @10.50%. Check Best Offers

Bank NamePersonal Loan Balance Transfer Rates
HDFC Bank10.50%
Yes Bank10.75%
Citibank11.99%
ICICI Bank13.25%
Tata Capital11.25%

What is Personal Loan Balance Transfer?

The idea of a personal loan balance transfer is inspired by the facility of transferring the outstanding balance from one provider to another in case of credit cards. Similarly, personal loan balance transfer allows the outstanding balance of the personal loan to be transferred from the current lender to another lender who is providing a lower rate of interest. You need to carefully evaluate the offer of balance transfer and choose the one who is providing maximum saving on the interest payable.

Personal loan balance transfers do not require any collateral from the borrower. However, the current lender may charge some foreclosure charges, and the new lender would charge some processing fee along with stamp duty for the loan agreement, in case applicable. Include these costs too, while evaluating the best balance transfer offer.

Benefits of Balance Transfer of Personal Loan

Balance Transfer of personal loan entails multiple benefits to the borrowers, which include

  • You get lowest interest on personal loan balance transfer starting @ 10.50%
  • You can reduce your EMI outgo by 5 – 8% by transferring personal loan
  • You can also avail top up loan to pay down high cost credit card dues or meet any other personal expenses such as travel, vacation, medical, marriage or even purchasing a car
  • You can get quick personal loans of up to 5 years with minimal documentation and without any guarantor

Savings on Balance Transfer

Suppose, you have an existing personal loan outstanding amount of ₹ 2 Lakh for a tenure of 48 months. You can transfer your existing personal loan to a new bank at lowest rates. By transferring a 4 year personal loan of ₹ 2 Lakh from 14.5% to 10.50%, your EMI can reduce from ₹ 5,516 to ₹ 5,121. Total savings on interest after balance transfer is ₹ 18,956.

Illustration of Interest Savings with Balance Transfer

Existing Loan New Loan
Balance Outstanding₹ 2 Lakh₹ 2 Lakh
Rate of Interest (ROI)14.5%10.50%
Loan Tenure Remaining (months)4848
EMI₹ 5,516 ₹ 5,121
Monthly Reduction in EMI ₹ 395
Total Savings ₹ 18,956

What are the eligibility criteria for a personal loan transfer to a new lender?

  • Applicant must have a running personal loan from another bank
  • Loan amount being transferred should be at least ₹ 50,000
  • Clean EMI payment track record of at least 12 months
  • CIBIL Score required as per bank policy, typically 700 and above

Personal Loan Balance Transfer Process

Follow the below simple steps on how to transfer your personal loan from bank to another

  • Check the current rate on personal loan that you can get and calculate interest savings
  • Calculate the estimated cost of loan transfer on account of various fees and charges. Calculate net benefits and decide if you want to transfer your loan or not. Shortlist new banks that you wish to transfer your existing loan to. Compare and check their interest rate offers, your loan amount eligibilty and their loan process
  • In case you decide to go ahead with the transfer , Apply for a NOC and foreclosure letter from your existing bank
  • Apply for loan at new bank, submit your loan documents with complete repayment record
  • Obtain sanction letter and execute new loan agreement with the new bank
  • Take disbursement from new bank by way of cheque/ demand draft in favor of existing bank and deposit the same with the existing bank
  • On receipt of loan outstanding, your existing bank will cancel all the cheques and ECS and close your loan account

Personal Loan Transfer Charges

Charges to transfer your personal loan can be different depending on your existing bank and the new bank. Key charges for loan transfer include foreclosure charges to be paid to your existing bank and processing fees.

  • Foreclosure charges are payable to existing bank for take over of personal loans. These rates can vary bank to bank from nil to up to 2%.
  • Processing fees are payable to the new bank on transfer and may range from a flat fee ₹ 999 to up to 2% of the loan amount. However, banks offer discount on processing fees from time to time and you should check for attractive offers with marketplaces like MyLoanCare to get best personal loan balance transfer offer.

Personal Loan Balance Transfer Calculator

With MyLoanCare Personal Loan Balance Transfer Calculator, you can calculate your loan amount eligibility and also identify offers with lower personal loan rates compared to your existing personal loan rates. Do complete market research before you choose the bank to transfer your loan to and apply for a balance transfer in terms of current interest rates, processing fees offers, personal loan top up schemes from various banks.

Documents Required for Personal Loan Transfer

  • Filled application form with passport size photograph duly sighed
  • Identity and age proof (PAN card/ passport, driving license/ Aadhaar card/ voter id card)
  • Address proof (Electricity bill/ telephone bill/ Aadhaar card/ rent agreement)
  • Last 3 months salary slip, and last 6 months bank account statement
  • Personal loan statement of loan to be transferred

FAQs

Who can avail the balance transfer and top-up of personal loan?

Any borrower with an existing personal loan on which he or she has paid at least 12 EMI’s regularly are eligible to balance transfer their loan to another bank and also avail top up loans at the time of loan transfer.

When should I avail the personal loan balance transfer?

In case you are paying an interest rate on your personal loan which is higher than those available in the market and the difference is more than 0.5% to 1%, you should consider the option of transferring your loan to a new bank.

What is the time duration for transfer of loan?

Your loan transfer formalities like getting NOC, foreclosure letter, applying and getting a sanction from new bank and getting the loan balance transferred to new bank can take up to 4-8 days.

Do I have to submit any security or collateral for personal loan transfer?

No, there is no need for security or collateral for personal loan transfer.

What is the loan tenure for the balance transfer of personal loan?

The repayment period for loan is around 12 to 60 months i.e. 1-5 years.

What are charges on the transfer of loan?

Apart from rate of interest, other charges include:

  • Processing fee payable to new bank
  • Pre-payment or foreclosure fee payable to existing bank
  • Stamp duty on loan agreement in some states

Personal Loan News - Aug 2020
  • 2020-08-11 : Bank of Baroda reported a net loss of ₹864 cr in Q1 news
    Bank of Baroda posted a net loss of ₹864 crores for the three months to June, owing to higher provisions for loans. Net interest income backed by retail loans like home, personal, gold, car, two-wheeler and gold loans along with business and mudra loans increased 5% y-o-y to ₹6,816 crores in Q1 FY21. Further, The total advances grew 8.6% y-o-y to Rs. 7.36 trillion.
  • 2020-08-07 : DCB Bank Ltd posted Rs. 79.38 crore PAT in Q1FY21 news
    DCB Bank posted a net profit of Rs.79.38 crores for the period ended June 30, 2020, as against a net profit of Rs.68.76 crores for the period ended March 31, 2020. In addition to this, the Bank reported a total income of Rs.950.70 crores backed by retail loans like home, personal, gold, two-wheeler, and car loans along with business and mudra loans during the period ended June 30, 2020.
  • 2020-08-06 : SBI reports Q1FY21 net profit of Rs. 4776.50 crore news
    State Bank of India reported a net profit of Rs.4776.50 crores for the period ended June 30, 2020, as against a net profit of Rs.6909.95 crores for the period ended March 31, 2020. The Bank posted a total income of Rs.87984.33 crores backed by retail loans like home, personal, car, two-wheeler, and gold loan along with the business and mudra loans. Further, the bank total deposits which include FD, RD, current and savings account grew at 15.96 per cent YoY.
  • 2020-08-04 : UCO Bank reports Rs. 21.46 crore PAT in Q1 news
    UCO Bank posted a net profit of Rs.21.46 crores for the period ended June 30, 2020, as against a net profit of Rs.16.78 crores for the period ended March 31, 2020. The bank reported total income aided by retail loans like home, personal, car, two-wheeler and gold loans along with business and mudra loans of Rs.4436.57 crores during the period ended June 30, 2020. In addition to this, total deposits which include FD, RD, current and savings accounts increased by 1.4% to Rs 1,95,119.60 crore.
  • 2020-08-03 : Dhanlaxmi Bank Ltd Q1FY21 net profit at Rs. 6.09 crore news
    Dhan Laxmi posted a net profit of Rs.6.09 crores for the period ended June 30, 2020, as against a net profit of Rs.2.60 crores for the period ended March 31, 2020. In addition to this, The bank reported a total income bolstered by retail loans home, personal, car, two-wheeler and gold loans along with business and mudra loans of Rs.278.62 crores during the period ended June 30, 2020. Bank provisioning for bad loans and contingencies spiked to Rs 37.02 crore during the reported quarter of FY21 as against Rs 9.27 crore a year ago.
*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. Read More