A Personal Loan Balance can Save you From Heavy EMIs

The process of moving an existing loan balance from one lender to another is known as a personal loan balance transfer. 

Benefits of Personal Loan Balance Transfer 

• A Longer Repayment Period 
• A borrower may benefit from a longer loan repayment period by moving the loan. Increased loan tenures will alleviate a borrower's pressure and make repayment more affordable. 

• Enhanced features 
• If you want to refinance a personal loan, you might be able to get better terms from the new lender, such as a lower rate of interest or a lower processing cost.

Personal Loan Balance Transfer Eligibility Criteria 

The eligibility conditions for a personal loan balance transfer are similar to those for a personal loan, although they vary by lender. However, the following are the general eligibility requirements that most lenders search for: 

• Age: When applying for a personal loan, a borrower must be at least 21 years old and no older than 60 years old. 

• Working Experience: A borrower must have at least 2 years of experience and be employed for at least 1 year in the current organization. 

• Employment: A borrower must be self-employed or employed by a private or public-sector agency such as the federal, state, or local government. Applicant must have a minimum net income of Rs. 15,000 to be considered. If he or she lives in a city metro such as Delhi, Mumbai, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad, Kolkata, or Cochin, his or her income must be at least Rs 20,000. 

Personal Loan Interest Rates  

A personal loan interest rate, which decides the EMI, is one of the most important aspects of a personal loan. Fixed interest rates and floating interest rates are the two major forms of interest rates. 

Let's take a closer look at it: 

• Fixed Interest Rate: If you want a fixed interest rate personal loan, you will pay the same interest rate for the length of the loan. For example, if an individual takes out a personal loan for four years, the interest rate provided by the bank will not change during that period. 

• Floating Interest Rate: The floating or variable interest rate, on the other hand, is related to the Marginal Cost of Lending Rate, or MCLR, resulting in a flexible interest rate as the MCLR increases. 

If you're thinking of taking out a personal loan, you should be aware of the factors that can affect the interest rate. Two people can receive a different rate of interest on a personal loan from the same lender depending on the following factors: 

• Credit score: A decent credit score not only helps you get a personal loan but also helps you save money on interest. A credit score is a three-digit number that indicates how well you've paid off credit cards and personal loans in the past. Points are added to your credit score every time you pay your EMI on time, and defaults or late EMI payments lower your credit score by a few points. Maintaining a good credit score of 750 or higher is critical because it represents your creditworthiness and portrays you as a trustworthy individual to lenders when applying for personal loans. As a result, you could be given a lower interest rate. 

• Income: Since personal loans are non-collateralized and do not need any security, a high monthly income serves as a guarantee to the lenders. Almost every lender assumes that high-income borrowers will be able to pay back the loan on time, so they charge them a lower interest rate. 

• The essence of the job: Depending on whether the borrower is self-employed or salaried, personal loan lenders can charge different interest rates. 

• Age: The loan seeker's age may have an impact on the interest rate offered by the lender. Individuals approaching retirement age (such as 58 years) will be paid a higher interest rate. 

• Employer Information: If you work for a reputable company, you are more likely to get a good deal on your loan interest rate. This occurs because lenders assume that such borrowers have a steady job and consistent profits, and hence would be able to pay their EMIs on time. 

• Relationship with the Lender: If you have a bank account and a strong credit repayment history, the bank is more likely to give you a personal loan with a low-interest rate or processing charge. 

Conclusion: 

A personal loan balance transfer can get you a low personal loan interest rate with a few basic steps in no time. So, if you are feeling burdened or heavy EMI gives a thought to personal loan balance transfer