8 COMMENTS

  1. Balance transfer of loan to other banks is a good policy and facility for the people but it has many negative points too. People need to be careful, when they want to transfer there money to the other bank. As the above given points rightly demonstrate how people can get into more mess for just simple loan balance transfer. Mostly banks are seen first to offer the customers for opening a savings account at there bank. After that they promise you for many facilities but that too with some conditions. So its better to read everything out and then only transfer your loan money to some other bank.

  2. Balance transfer of loan is technically known as ‘takeover of loan’. The borrower benefits from the lower monthly installments and the lower rate of interest. The bank is benefited as it gains business. The banks offer you to pay lower monthly installments by giving you more time to repay the loan. But there is a catch here, reduced EMIs increase the amount in total to be payed as the interest keeps on adding on the amount yet to be payed. Not only this, there are a number of other points, well discussed in the article above, that should be kept in mind before transferring your loan.

  3. This article is indeed a good eye opener for all those planning to transfer their existing loan accounts from one bank to the other. I personally feel transferring loan amount from one bank to the other is incurring an extra cost because once again you have to pay the processing fees which is completely an unwanted cost.

  4. It is a basic human tendancy that they run towards what is profitable. It than doesnt matter if there are hidden charges or terms and conditions. No bank will do something of this sort unless they benefit out of it. But you being the one who will end up paying your money to these banks have to ensure that the ratio of your profit to bank profit is atleast 2:1 where if you can calculate and ensure that out of three conditions, two are favourable to you and may be one for the bank. Then go for it.

  5. It is quiet natural that markets are full of luring offers that are used to attract the customer but one needs to be very careful and should know everything about these offers. One should not blindly follow them and should know if there are any hidden terms and conditions. One has to be really cautious while applying for change of home loan. The article describes the points one should keep in mind while doing the same.

  6. There are so many agencies that offer free balance transfer of loans to get a lower interest rate. But be careful! Some of these places are always giving you a lower interest rate, only to hike it up after a certain period so you are having the same high interest as your original bank.
    Also, when you bank with only one financial institution, you may be eligible for loyalty rates that can be used to your advantage. Think carefully and consider ALL your options and the consequences before transferring your loan… don;t just make a knee-jerk reaction when you hear “lower interest rate” mentioned.

  7. Ankita emphasized reading the fine print which is very important. It is easy to get into the habit of not reading this with continuous upgrades and changes to documents in all part of business. Also, I was very engaged when reading this article. It was catchy and it flowed well.

  8. This information is again the best one I have come across regarding bank policies. It’s a real piece of pie for the consumer to transfer the loan balance from one bank to other for lower interest rates. This will prompt the banks to offer the best service and less interest percentages. This enhances flexibility among the customer as well!

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