Personal Loan Balance Transfer – Is It Really Worth It?

By BANKBRIZ™

Paying high EMIs every month can drain your savings. That’s why many borrowers consider a personal loan balance transfer - shifting their existing loan to another bank or NBFC offering a lower interest rate. On paper, it sounds like a smart move. But is it really worth it? Let’s find out.

At BankBriz.com, we simplify the pros and cons of a balance transfer so you can make the right decision.

---

What is a Personal Loan Balance Transfer?

It’s the process of moving your outstanding loan from your current lender to another lender offering better terms—usually a lower interest rate, longer tenure, or reduced EMI.

---

Benefits of a Balance Transfer

1. Lower Interest Rate

The biggest advantage—switching can cut down your overall interest burden.

2. Reduced EMI

With lower rates or extended tenure, your monthly EMI becomes lighter on your pocket.

3. Top-Up Loan Option

Some lenders allow you to borrow extra funds while transferring, useful for emergencies or new expenses.

4. Better Features & Flexibility

You may get benefits like part-prepayment options, lower fees, or digital repayment tools.

---

Things to Watch Out For

• Processing & Transfer Fees – Banks may charge 1–3% of the loan amount as fees.

• Tenure Extension = More Interest – Lower EMIs might mean paying more in the long run.

• Eligibility Check – You need a decent CIBIL score and repayment history for approval.

• Early Transfer May Not Help – The maximum benefit usually comes if you transfer in the first half of the loan tenure.

---

BankBriz Expert Tip

Balance transfer works best when:

• Your loan has a long tenure left

• The interest rate difference is at least 1–2%

• The fees don’t cancel out the savings

Before deciding, always use the BankBriz Balance Transfer Calculator to see your actual savings.

---

Conclusion

A personal loan balance transfer can be worth it—but only if the numbers add up. While lower EMIs and interest savings are tempting, hidden charges and longer tenures may reduce benefits. Always compare lenders, calculate savings, and make an informed choice.

Use the BankBriz Free Balance Transfer Tool today and check if it’s really worth it for you.