A personal loan balance transfer allows one to transfer the outstanding loan amount to a new lender. It is useful for borrowers looking to reduce interest rates or change the loan tenure. Typically, balance transfers are considered after a few months or years of regular repayment. Some lenders accept transfer requests only after a certain number of EMIs have been made. This article explains everything you need to know about switching lenders.

What is a Personal Loan Balance Transfer?

A personal loan balance transfer means shifting the outstanding loan amount from your current lender to a new one. In this process, the new lender pays off the outstanding balance to your current lender. After that, you start repaying the loan under the new terms provided by the new lender. Many people choose this option when they want to change the structure of their repayment. This process also offers different EMI amounts and loan durations, depending on your eligibility and lender policies. The transfer request must go through proper verification and approval steps.