05 JUNE, 2020

In times of financial constraints, a personal loan can be used to keep your financial flow steady. The funds obtained from this type of loan can be used to serve different purposes. This includes medical emergencies, wedding costs, vacation costs, and much more. While it is a great source, you may come to realize that you are paying a high amount in the form of interest costs. Fortunately, you can resort to the option of a personal loan balance transfer.

A personal loan balance transfer is a process in which you can transfer the total outstanding amount from one bank to another. It makes for a great move if the new bank offers you better loan features with a lower interest rate. Typically, a personal loan transfer is taken with the purpose of lowering the debt burden.

Read on to know the steps to apply for a personal loan balance transfer:

  • Contact the bank – To initiate the process, you will first have to get into contact with your bank. Pick a reputed bank and follow the instructions of the bank representative. Typically, you will be required to simply send out an SMS to the bank on a given number. The bank representative will then aid in the steps that you have to complete. It is straightforward and is mostly completed on part of the bank. However, you will have to meet the eligibility criteria and provide the bank with documentation.

  • Eligibility criteria – It is important for you to meet the eligibility criteria. You must have an education qualification of being a graduate, have a minimum work experience of one year, must be a resident of a city for at least one year and have a minimum net salary of INR 20,000.

  • Essential documents – The requisite documents for undertaking a balance transfer include a proof of identity, proof of residence, 3 month’s bank statement, 3 month’s salary slips, and 3 passport-sized photographs. These documents have to be provided to the bank before the balance transfer process starts.  

The balance transfer option can open for you an avenue to several great benefits. This includes the opportunity of lower interest rates, extended loan tenure, zero processing fees, and better customer care. Choose your bank wisely to ensure that you get the best offer upon your personal loan balance transfer.

Read More: Factors to consider while planning a Personal Loan balance transfer

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Disclaimer: This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein. Tax laws are subject to amendment from time to time. The above information is for general understanding and reference. This is not legal advice or tax advice, and users are advised to consult their tax advisors before making any decision or taking any action.