A Personal Loan Balance Transfer is a type of loan where a personal loan is transferred to some other bank. It means a borrower can transfer the outstanding amount of the current personal loan from one bank to the other. This option should be availed if the other lender bank offers an interest rate lower than the existing rate of interest to reduce the total cost of the loan.
|HDFC Bank Personal Loan Balance Transfer – A Snapshot|
|Interest rates||10.50 % p.a. onwards|
|Loan amount||Up to INR 40 Lakh|
|Repayment tenure||Up to 3 years|
|Processing fee||INR 999 + GST onwards|
How to Apply for an HDFC Personal Loan?
Mentioned below are the steps to apply for HDFC Personal Loan:
- Via Website:
Step 1: Click on “Apply Now”.
Step 2: Fill in the personal details along with the mobile number and OTP.
Step 3: Fill in the professional details.
Step 4: Once the loan application is accepted, the bank representative will call further.
Step 5: Upload the documents required.
- Via App:
Step 1: Verify the mobile number by entering OTP.
Step 2: Click on “Apply Now” to avail a new loan.
Step 3: Provide the loan and applicant details.
Step 4: Enter the address information.
Step 5: Complete the image/ signature.
- By Visiting Branch:
Visit any nearest branch and contact any bank representative there.
- By Calling Customer Care:
To apply for an HDFC Personal Loan, one can also call the customer care number of HDFC.
Reasons to Choose HDFC Personal Loan
- Affordable and Flexible Interest Rates
- Special interest rates for women borrowers
- Fast loan approval
- Easy documentation process and 100% transparency
- Maximum loan up to INR 25 lakhs for salaried individuals
- Flexible repayment options, ranging from 12 to 60 months
- Zero hidden charges and low processing fee
- Convenient repayment options
- Fast disbursal with money in your account within 2 days
Features of HDFC Personal Loan Balance Transfer
Mentioned below are the features of HDFC Personal Loan Balance Transfer:
- Once the personal loan balance is transferred, the EMI amount gets reduced.
- The interest rate is 10.50%.
- The existing loan tenure can be negotiated.
- Quicker disbursal of loans.
- Minimal Processing Fees.
- No Hidden Charges.
- Repayment through standing instruction facility.
- The loan is available for all government and private sector employees or self-employed individuals.
- HDFC Personal Loan Balance can be transferred at a fee of just INR 999 + GST.
- After transferring the outstanding balance of the personal loan, one can repay the remaining balance through EMIs.
HDFC Personal Loan Balance Transfer Documents Required
Mentioned below are the documents required for the HDFC Personal Loan Balance Transfer
- ID Proof (Aadhaar card/driving license/voter ID/passport)
- Address Proof (Aadhaar card/driving license/voter ID/passport)
- Bank statement for the past 3 months (updated passbook for last 6 months)
- Latest salary slips/latest salary certificate with Form 16.
HDFC Personal Loan Balance Transfer Processing Fees
The processing fees of HDFC Personal Loan Balance Transfer start from INR 999 + GST.
HDFC Personal Loan Balance Transfer Eligibility
Mentioned below are the eligibility criteria to apply for HDFC Personal Loan Balance Transfer:
- The minimum age of an applicant must be 21 years.
- The maximum age of an applicant must be 60 years.
- The option is available to government employees as well.
- It is available to self-employed or salaried individuals.
HDFC Personal Loan Balance Transfer Interest Rate
The HDFC Personal Loan Interest Rate for Balance Transfer starts at 10.50%.
Benefits of HDFC Personal Loan Balance Transfer
Mentioned below are the benefits of HDFC Personal Loan Balance Transfer:
- Increased Rate of Interest:
Generally, the new lender offers a lower rate of interest in the case of a Personal Loan Balance Transfer. Hence, the rate of interest is reduced which in turn lowers the interest burden on the borrower as EMI gets reduced.
- Extended Loan Tenure:
While balance transfer, the loan tenure of the existing personal loan can be negotiated. The repayment period can either be increased or decreased based on the requirements. And, accordingly, the EMI and interest burden increases and decreases.
- Enhanced Services:
One may get better services from the new lender than what is currently offered. The services offered by the new lender may be in terms of sending EMI payment reminders, updates on a timely basis, better customer facilities, online payment facilities with standing instructions instead of PDCs, etc.
- Increment of Loan Facility:
Once the Personal Loan balance is transferred, the interest rate gets reduced. But, this facility can be utilized to raise more funds. Often, a top-up loan provides access to a higher loan amount at a lower rate of interest. This facility should be opted, for when in need of funds.
Personal Loan Balance Transfer Calculator
A personal loan transfer calculator takes into account the remaining loan amount of the existing personal loan, its rate of interest, loan tenure, the EMIs that you have paid, and the new tenure you wish to choose. Mentioned below are the steps on how to use the calculator:
Step 1: Check the current interest rate that you can get on your loan with other lenders and calculate the interest savings.
Step 2: Evaluate the estimated cost of the loan transfer taking into account various charges that might be applicable.
Step 3: Consider the net benefits and finalize whether you want to opt for the balance transfer or not. Shortlist a few lenders that you may want to transfer your existing loan to.
Step 4: Compare the interest rates offered by the shortlisted lenders, your loan amount eligibility, and their loan process.
Step 5: After you finalize the new lender and decide to go ahead with the transfer, apply for an NOC (No Objection Certificate) and foreclosure letter from your existing lender.
Step 6: Start the application process with the new lender. Submit the loan documents along with the complete record of repayments.
Step 7: Get a sanction letter and execute the new loan agreement with the new lender.
Step 8: Take a disbursement (of the outstanding loan amount that you had to pay to the previous lender) from the new lender through a cheque/ demand draft in favor of the earlier lender.
Step 9: Once the previous lender receives the outstanding loan amount, they will cancel all the cheques and ECS and close your personal loan account.