What is Balance Transfer?
Balance transfer is the facility of transferring any type of outstanding credits (loans) from one financial institution to another one. If you have any kind of Loan or outstanding balance in credit card, you can avail the facility of Balance transfer by selecting a Bank or financial institution which can give you lower interest rates or convert it into an affordable EMI.
Boon to credit card holders
Transfer of balance from one credit card to another has become a growing aspect in today’s banking owing to lower interest rates and transaction fees. The process has succeeded by attracting new customers and almost all credit card issuers are providing it. Reasons behind its sudden hike are:
- Easy payment options.
- Consolidation of multiple balances into one.
- Balance transfer on EMI.
This has helped the credit card holder to a greater extent. A credit card balance transfer can be a great way to save some money. There are also some other benefits that come with consolidating the debts into just one payment. One of the most welcomed transfer policy was Balance transfer on EMI. This allows us to transfer the outstanding balance from another banks credit cards to our desired Credit Card and repay it in easy monthly installments at a lower interest rate.
Considerable APR and transaction fee
A balance transfer fee – usually 2-4% of the transferred debts may be charged depending upon the interest rates of our desired credit card issuer. New credit card that are availed are often bestowed with introductory or promotional time period offers over interest rated and transaction fees. The Annual percentage rate may vary with different bankers. But the overall benefit attained through this balance transfer method is dependent on the user.
