A personal loan is the most trending loan product in the lending market today courtesy the many benefits it upholds. From being available at a click of a button to the short loan tenure, the flexibility of using the loan amount as per one’s will and without any requirement of collateral.
There is nothing that isn’t attractive about personal loans. But being unsecured in nature, it incurs a higher rate of interest which tends to be burdensome with time.
A low-interest rate personal loan ensures a comfortable repayment of the loan. A personal loan balance transfer is the solution to lower your finances by reducing the monthly EMI as the interest rate gets lowered.
When it comes to meeting financial emergencies personal loans act as the ultimate saviours. One can use the loan amount for purposes like medical expenses, wedding, education, home renovation, travel etc.
When compared to secured loans like home loan, car loan etc, personal loan charge a higher interest rate. This means a big EMI chucking out from your monthly income. However, one can reduce their monthly EMIs by transferring their present personal loan at a lower interest rate and new terms and conditions.
This is referred to as personal loan balance transfer wherein you shift from your current lender to a new lender.
A personal loan balance transfer is a great way of saving some money which would otherwise have gone as interest. It is beneficial and a wise choice to make if are struggling with minimising your outstanding debts.
Here are some reasons why one should opt for personal loan balance transfer for lowering their finance cost:
- LOWER RATE OF INTEREST
The lending sector is booming with lenders who are willing to offer personal loan at a competitive rate of interest. Instead of burdening your pockets with the current personal loan EMI, it is beneficial to shift to a lender who is willing to offer a lower rate of interest.
But one must also take into account various other factors like processing charges, foreclosure fees of the current lender etc before opting for one.
Proper calculations must be done so that the balance transfer doesn’t end up to be an expensive affair. One can avail a personal loan in Delhi via the comparative platform of LoansJagat which helps you grab the best deal with a low rate of interest and loan tenure.
- REDUCTION IN LOAN TENURE
While opting for a personal loan balance transfer, one has a choice of opting for same or lower loan tenure.
This would mean that you would be free of the loan early. Long loan tenure can be burdensome as each month a big chunk of your monthly income goes as EMI. As the loan tenure gets reduced, you can get a sigh of relief early.
- BETTER AND IMPROVED CREDIT SCORE
Personal loan and credit score go hand in hand. Personal loan balance transfer if done right can significantly help in bettering your credit score so that you can avail credit in future easily.
Thus, one should opt for a deal by carefully reading all the terms and calculations and doing the requisite calculations.
IMPORTANT THINGS TO KEEP IN MIND
It must be noted that with a personal loan balance transfer, the lender will be changing and so does the terms and conditions.
You will be bounded with the new personal loan provider for the loan tenure. Thus it is advisable to not take any hasty decision when opting for the balance transfer process.
Proper research and calculations regarding the current loan situation and the new loan must be done so as to make the transfer worth it. One should remember that the main goal of a personal loan balance transfer is to save some money in the end.
CHOOSE PLATFORM LIKE LOANS JAGAT FOR CHOOSING THE RIGHT PERSONAL LOAN LENDER
LoansJagat provides a transparent platform where one can compare the rate of interest offered and terms and conditions of different lenders under one roof.
They also help in getting your personal loan application approved quickly. Their representatives guide you and help you in comparing the various terms and conditions and calculate whether a personal loan balance transfer is a good move or not by taking into account the various processing charges and fees.