BT loan

 

loan balance transfer is a process by which a borrower transfers an outstanding principal of a loan from one lender to another in order to benefit from better terms such as a lower interest rate on the outstanding loan. Many NBFCs (non-banking financial companies) and banks now provide the option of a balance transfer on loans. However, one needs to carefully evaluate the balance transfer offer and choose the one that helps reduce the cost of borrowing. loan balance transfer does not require any security or collateral to be provided by the borrower. Some nominal charges that may be involved in loan balance transfer are foreclosure charges that may be levied by the current lender, processing fees that may be charged by the new lender and stamp duty on loan agreement, if applicable. The following are some key factors to consider when evaluating a balance transfer offer on loans.