Personal loans just like any other loans can be transferred to other bank. All banks and NBFCs including top banks like SBI, ICICI Bank, HDFC Bank, Kotak Bank, Axis Bank, etc. offer balance transfer facility with easy documentation process involved. In addition to this, there is a facility of balance transfer and Top-Up wherein you can get more fund.
If you have a running personal loan from any of these banks or any other bank and want to transfer it to other bank, you can surely go for it. The existing customers of personal loans can balance transfer personal loan if the other lender is offering a lower rate of interest. The process is simple can is beneficial for the customers who by any chance want a personal loan at an affordable rate. Also, this is a great option for those who want to reduce or increase the EMI amount.
Personal loan balance transfer calculator
EMI calculator can be used to calculate how much you are saving after the transfer. The calculator is the best way to calculate the EMI, the total interest outgo and the total payment for your personal loan. For example, if you are taking a loan of ₹15 lakhs from Axis Bank for the tenure of 5 years and have been offered the interest rate of 15.50% per annum, the payment will be as follows:
Loan Amount- ₹15 lakhs
Interest rate- 15.50% per annum
Tenure- 5 years
Total Interest Outgo- ₹6,64,787
Total Amount (Interest + Principal)- ₹21,64,787
Now, if you transfer your loan to ICICI Bank after paying 24 EMIs and have also taken a top-up loan of ₹2 lakhs the balance amount plus top-up loan amount will be the new loan amount. You have also chosen the tenure of 5 years. Let us suppose ICICI Bank is offering you a personal loan at 12% per annum on the basis of which the new payments will be as follows:
Loan amount- ₹10,33,484 (balance amount) + ₹2,00,000 = ₹12,33,484
Interest rate- 12% per annum
Tenure- 5 years
Total Interest Outgo- ₹4,12,806
Total Amount (Interest + Principal)- ₹16,46,290
Now, even after taking more money, your EMI is much lower. However, total savings is the calculate as follows:
Total repayment amount (Interest + Principal) before transfer- ₹21,64,787
Total repayment amount (Interest + Principal) after transfer- ₹16,46,290
Savings = ₹21,64,787 – ₹16,46,290 = ₹5,18,497
Thus, you can see how much you can save on your personal loan. Below are the top banks where you can apply for balance transfer personal loan.
- Personal loan balance transfer to ICICI
- Personal loan balance transfer to Axis Bank
- Personal loan balance transfer to SBI
- Personal loan balance transfer to Bajaj finance
- Personal loan balance transfer to Kotak
- Personal loan balance transfer to Citibank
- Personal loan transfer from Axis to HDFC
There are many reasons due to which a loan borrower can go for the balance transfer option. But the question arises, why should you balance transfer personal loan? So, here we are bringing to you the advantages of transferring your existing personal loan.
Benefits of balance transfer personal loan
Here are the benefits of a personal loan balance transfer option:
- Lower rate of interest and lower EMI option
- Balance transfer and top-up
- The documentation process is easy
- You can choose the tenure as per your choice
Processing fees on balance transfer
Even though you are transferring your loan, the new personal loan has the same process. Just like other loans, there is a processing fee applicable which is a one-time payment which is deducted from the disbursal amount. You will get the final amount after all the deductions like processing fees, stamp duty and the loan insurance (if any).
You can bargain with the lender on the fee to save more, however, the average processing fee is from 1% to 3% of the loan amount plus applicable taxes. Now that GST is here, the additional tax has changed from 15% to 18%. So, whatever will be your processing fee, you will have to pay, 18% GST will be added to it.