Personal Loan Balance Transfer: A Complete Guide

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Personal Loan Balance Transfer A Complete
Guide
PowerPoint Presentation on Personal Loan Balance
TransferA Complete Guide
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What is Personal Loan Balance Transfer?

• Taking a personal loan balance transfer to
  consolidate your debts is considered as the most
  practical solution to pay-off that outstanding
  loan amount.
• But most borrowers are still not aware of the
  fact that they can save more money through
  refinancing their loans.
• When you take a personal loan balance transfer,
  it simply means that a borrower pays-off the old
  loan by taking a new one, ideally, with better
  interest rates and terms. Or in simple words,
  its another method of consolidating your
  holdings.
• The only difference being, debt consolidation
  means using a personal loan to pay off the debt,
  while when you get a personal loan balance
  transfer, youd be only adding on to the existing
  loan.
• It can be viewed as sort of top-up loans as well.

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How Can You Get A Personal Loan Balance Transfer?

• The process to get a personal loan balance
  transfer is rather simple. The process works much
  like refinancing a mortgage.
• You check for your personal loan balance
  transfer eligibility and simply apply for a loan
  with any bank or financial institution to cover
  the remaining amount on your current loan.
• Once your application is approved and the loan
  is disbursed, you can use the funds from the
  personal loan top up to pay off the previous loan
  at the lower interest rate.
• Also, keep in mind that while refinancing youd
  be carrying the same amount of debt, but your
  savings will be in large proportion due to better
  terms and reduced interest rates.

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Things To Consider While Getting A Personal Loan
Balance Transfer

• Going to get a personal loan balance transfer?
  There are certain things to consider-
• Check your credit report
• Comparison loan options
• Calculating refinancing cost
• Apply for the new loan
• Close out your original loan

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Check Your Credit Report

• This is a no-brainer, whether youre applying for
  a credit card or want to refinance your loan,
  checking your credit report should be the
  foremost step on your to-do list
• . Its important to check your credit report, as
  its an important tool to help manage your
  personal finances.
• There are several benefits associated with
  checking your credit report like you will always
  know your creditworthiness, you can improve your
  credit score if you see it dipping and can also
  report any errors in a timely fashion.
• If youre looking for a personal loan to
  refinance your debt, then you should have a good
  credit score. And you can improve it only by
  regularly keeping an eye on your credit report.
• Therefore, keeping a close check on your credit
  report and making efforts to increase your credit
  scores are only going to help you in long-term.

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Comparison Loan Options

• Just like you wont book a hotel before comparing
  its price with others.
• Its important to compare the loan options too
  before going for refinancing. Banks and financial
  institutions offer different interest rates,
  offers, benefits etc.
• So it only makes sense to compare and analyze
  all the factors carefully before applying for the
  loan.
• Always look for the offers which suit you the
  best and is beneficial to you in the long-run.
• The main purpose of refinancing is to take a new
  at a lower interest rate and use it to pay off
  the old loan.
• If you dont compare well, and still go for a
  personal loan with high-interest then the whole
  purpose of refinancing the loan goes in vain.
• So, its beneficial to check and fully compare
  the loan options.

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Calculating Refinancing Cost

• Before you approach some banks or lenders for
  refinancing, its important to calculate your
  refinancing cost.
• You can take the help of several refinancing
  costs available online. This will give you an
  idea on how refinancing works and what your cost
  that youre incurring might be.
• Refinancing a personal loan includes cost like
  fee etc. In some cases, these costs might be too
  high. And you land up paying higher rather than
  canceling out on your cost through a refinance.
• The costs that this includes are- application
  fees, processing fees, origination fees etc.
  Also, dont forget to read the fine print before
  approaching your respective bank or lender.

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Apply For The New Loan

• When you have found the terms and interest rates
  most suitable to you, that will help save your
  money.
• And also enhance savings, its time to apply for
  the top up personal loan.
• You can look for several online portals available
  to apply for the loan.
• They will help you cut through the queue and
  reduce that extensive paperwork.
• Make sure to have all the important documents
  required to complete the process.

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Close Out Your Original Loan

• Upon approval of your loan refinance application,
  your amount is disbursed.
• Its time to close out that original loan as soon
  as possible.
• The main purpose of going for the refinance was
  closing out your old loan.
• So after you receive the amount try to close out
  the old loan.
• It will take less time if you apply through
  online portals.
• Also, you wont be going through much hassle in
  the process.

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Should I Get A Personal Loan Balance
Transfer

• The true value of a personal loan refinancing
  depends on several things.
• Generally, it includes your current financial
  standings and terms of the loan offered to you by
  the bank or lender.
• If you want to determine the true value of your
  loan refinancing.
• Then its important to consider what your
  current loans are offering you and how
  refinancing is beneficial to you.
• When you apply for a personal loan to refinance
  your holdings, the interest rate offered to you
  would be much lower than your previous loan.

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Apply Personal Loan via IndiaLends

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