Reduce your Interest Rate with Personal Loan Balance Transfer

A personal loan can be used for any personal expenses such as buying two-wheelers, four-wheelers, to pay off the wedding expenses, for a foreign dream vacation, or even in adverse situations like medical emergencies and others. Various lenders offer a range of financial products with a strong presence in both the rural and urban areas of India. Some of the key advantages of a personal loan are given below:

There various aspects those play a major role in a personal loan like:

• Interest Rate 

• Credit Score

• Income

• Employment Details

Let’s understand each of them in detail.

• Interest Rate:  It is crucial to understand the factors that may influence the interest rate. Few factors are mentioned below based on which two people may get different personal loan interest rate 2020. 

• Credit score: It is a 3 digits number that shows how you have handled the repayments of your credit cards and personal loans in the past. Every time you repay the EMI on time, points are added to the credit score and defaults or late EMI payments narrow down the credit score by a few points. 

• Employer Details: This determines the interest rate because loan providers believe that a borrower with a stable job and constant income and hence would be able to repay the EMIs on time.

• Income: As personal loans are collateral-free loans and do not involve any security against them and a high monthly income works as an assurance to the lenders. Almost every lender believes that high-income borrowers will be able to repay the loan on time, hence offer a lower interest rate to them. For example, if a borrower with a monthly income of Rs. 90,000 might get a personal loan at the interest rate of as low as 11% but on the other hand, a borrower with a monthly income of Rs. 30,000 might get an interest rate of 16% from the same lender.

Tips to get Personal Loan at a low rate of interest

Fullerton personal loan interest rate 2020 comes at a competitive rate. But just to help you and make sure that you get a low personal loan interest rate 2020 following are few tips or ways of getting a personal loan at a low-interest rate:

• Improve Credit Score: It is important to maintain a good credit score of 750 or above as it portrays your creditworthiness in the eyes of a lender. A good credit score results in the lenders giving you a personal loan at a low-interest rate. If you have a credit score below 750, that it will be difficult for you to crack a good deal and you may also have to make some extra efforts. The simplest ways to do so are to keep paying the EMIs of the existing loans and credit cards on time and keep checking the credit report for any defaults.

• Pay Existing Debts: The DTI (Debt to Income Ratio) is calculated by dividing the monthly debts by one’s monthly income. DTI is also taken into consideration by lenders to determine the applicant’s ability to manage the monthly EMIs along with the other expenses. If your DTI is more than 50%, you may not get considered for a loan or the lender may charge a high-interest rate. So, it is always advisable for you to pay all the possible existing debts to maintain the DTI ratio.

• Apply with a co-applicant: If you do not have a credit score of 750 or above, then the lender may offer you a personal loan of the high rate of interest. During such a situation, you can apply for a personal loan with a co-application who has good credit scores. Doing this, the financial information of both the co-applicant and you will be considered and you might get a low rate of interest.

• Eligibility Criteria: It is one of the important aspects of a personal loan so checking the eligibility is also before applying for it. The eligibility criteria of the personal loan depend on the various parameters in which a borrower has to fit into avail of the personal loan. These factors vary based on the loan amount; the type of loan for the borrower is applying for. Now day checking the personal loan eligibility has become much easier than ever with the online availability of personal loan eligibility calculators. An applicant can find eligibility on the lender’s website. This online calculator is user-friendly hence an applicant can simply enter the asked details and can check the eligibility with a matter of a few minutes.

Here a few ways that will help you to boost your loan eligibility.

1. Choose Longer Repayment Term

In general, if you go for longer repayment tenure, your loan eligibility increases to a greater extent. As the longer tenure displays your ability of loan repayment for a certain time in the future. You can always use the online personal loan EMI calculators to plan your EMIs and make an informed decision.

2. Maintain a good Credit Score

If you have a good credit score for a long constant period, then the lenders consider you as a credible applicant instead of a risk.

3. Duly payments of Credit Card Bills on Time

Timely payment of credit card bills displays your profile as a disciplined borrower in the eyes of the lender when it comes to making payments. This can have a positive impact and also boost your eligibility.

4. Residential or Commercial Rental Income

An extra source of income in the form of rents is a good add-on to the existing financial condition when you apply for the loan.

Eligibility for Fullerton Personal Loan

Personal loan eligibility criteria are flexible based on many factors. Following are the common eligibility requirements that a borrower must fulfill to make sure that the application is successful:

• The applicant age should range between the 21 years to 60 years.

• All Defence Personnel like officials of Military Station Headquarters, Border Security Force, Central Reserve Police Force, Central Industrial Security Force, Indo Tibetan Border Police, etc. 

Personal Loan Balance Transfer

A personal loan balance transfer is a process of transferring the existing loan balance from one lender to another. With the help of personal loan balance transfer to the new bank; you can easily reduce the burden of your existing loan and also can avail extra funds for your requirements at a lower rate of interest with additional exciting benefits.

Feature and Benefits of Personal Loan Balance Transfer

If you transfer your existing personal loan balance from one bank to another, then you can enjoy various exciting advantages. To help you a bit, here are the advantages of a personal loan transfer:

• Your Equated Monthly Instalments or EMIs will be reduced by transferring your existing personal loan balance to another bank.

• You can also choose for longer repayment tenure as per your convenience with a personal loan balance transfer. 

• After transferring your loan balance, you can pay the EMIs on time without exceeding the budget.

• A personal loan balance transfer will enable you to repay the balance loan amount conveniently by the end of the loan tenure.

• You have multiple options to apply for a balance transfer from which you can choose that suits you the best.

Personal Loan Balance Transfer Eligibility

The eligibility criteria for a personal loan balance may vary based on various factors, here is the generic one:

• An applicant should have Indian citizenship.

• An applicant should be a minimum of 23 years, and a maximum of 60 years.

• The monthly salary credited to the Bank should be more than above 25,000.

• Job stability or continuity should not be less than 2 years.

• An applicant's CIBIL score should be 720 points for the loan amount of more than Rs. 5 lakhs.

• An Applicant should be having his residence or be living with his family in a rented premise.

• An applicant should have a graduate.

Documents Required for Bank Balance Transfer

• A self-attested copy to be submitted for Personal Loan balance Transfer for 

• Application form duly filled & signed.

• 2 passport size photos.

• Last 3 months salary slips 

• Form 16 

• PAN Card Copy.

• Identity proof (Driving Licence/Aadhaar Card /Passport/Voter ID)

• Current address proof (Driving Licence/Aadhaar Card /Passport/Voter ID/Utility bill/Rent agreement)

• Track of the existing personal Loan.

• Application copy for closure request or pre-closure letter of the current personal loan

Factors affecting the Personal Loan Interest Rate

Depending upon the following factors two people may get a different rate of interest on a personal loan from the lender: 

• Income: As personal loans are unsecured loans and do not involve any security against them and a high monthly income works as an assurance to the lenders. Almost every lender considers that high-income individuals will be able to repay the loan on time, hence offering a lower interest rate to them. 

• Relationship with the Lender: If an applicant has an existing relationship with the bank and shares a good credit repayment history, the bank is most likely to offer him/her a personal loan with a low rate of interest or processing fee. 

• Employer Details: Loan providers believe that such borrowers have a stable job and constant income and hence would be able to repay the EMIs on time. 

• Credit Score: Every time he/she repay the EMI on time, points are added to the credit score, and defaults or late EMI payments narrow down the credit score by a few points. 

About This Author

Digital12345 Joined: January 19th, 2020