If you’ve taken out a loan, the EMI monster will most likely suck up a significant chunk of your paycheck every month before you can slip it into your pocket. This not only means that you are spending less money, but it also means that you have little to no savings.
It is a vicious cycle and you are not alone. Contrary to what many people think, it doesn’t just have to be accepted as part of life. You can use a balance transfer to get out of this cycle by paying for smaller EMIs, saving more money.
If you’ve never heard of a balance transfer, here’s a simple explanation: Pay off one loan by getting another loan at a cheaper rate. This way, you can save money on installment payments. This method is especially helpful if you are one of the many people struggling to make ends meet after paying off huge NDEs that are being crowded out by their high-yield loans.
Take the example of Sita. Sita received a personal loan a year ago and has since paid a monthly EMI of Rs 18,000. That year, he discovered a finance company that offered personal finance at a much lower interest rate. After speaking with a representative from the bank, she realized that she could save up to Rs. 2000 per month consolidating your existing personal loan by taking second bank personal finances at a lower interest rate. College student. After learning more about this and transferring the balance, she finally found that she had saved Rs 24,000 a year in her annual payment amount.
A balance transfer can be even more useful with home loans since the loan term is much longer than with a personal loan. Even if the interest rate changes slightly, it can mean higher profits for you.
Here is a list of the benefits of using the fund’s transfer feature for different types of loans or credit cards:
Lenders look at the current market value of your asset, not the old one. Therefore, you may be eligible for an additional loan.
1. Check the current interest rate semi-annually or quarterly, or when the government or the Reserve Bank of India. 2. (RBI) usually makes important interest rate announcements.
3. Examine the dynamics of the chosen credit scheme.
4. Compare prices, terms, and product features offered by lenders.
5. Learn about your options to optimize the rate you choose.
6. Submit the required documents to a competing lender to learn more about your eligibility.
7. Request a balance transfer from the selected lender along with all necessary documents.
8. It generally takes 2-3 weeks for the lender to send a confirmation regarding the proposal acceptable to the applicant.
9. Then, you should inform your current lender and receive a letter with the current loan amount.
10. The new lender then pays the existing lender to obtain the required loan documents. This process can take up to 2 weeks. After that, the borrower must pay the EMI according to the new system.
11. After 10-15 days, the original lender will close the loan and the relevant documents will be transferred to the new lender.
If the balance transmission sounds too good to be true, you may be right, as there are many traps you can get into if you are not careful.