Are you a 𝐿𝑜𝑎𝑛 𝑊𝑎𝑟𝑟𝑖𝑜𝑟?


03 Jan 2020 | 5 min read

Are you someone who is struggling to pay-off huge EMIs every month?

Well you don't need to – why?? Go for a Balance transfer and live life the Afinoz way with small EMIs.

We live in a world which oozes of extravagance and flamboyance all around us, most of the millennials are in a habit of spending money on various things ranging from latest gadgets or for household expenses, luxurious travels or for urgent medical expenses. If in case you have accumulated a large amount of credit with high APR, you must read ahead on how to consolidate your debt and enjoy reduced EMIs.

Read: How personal loan balance transfer works?

Now you can avail reduced EMIs on your personal loan repayment –

Most people prefer paying huge interests on their credit card debts and try to keep themselves rotating with the cycle of one or more card payments. Rather than paying some part of the accumulated interest every month, one can simply avail a debt consolidation plan and simply start paying one EMI each month.

For existing Personal Loan or any other Loan facility –

Debt consolidation can easily be understood as a process by which a person can collectively repay an existing debt with the help of a personal loan. For example, if a person has availed a personal loan at a higher interest rate and has paid EMIs for 12 months at the time of balance transfer. He can easily avail a balance transfer facility where the existing balance will be converted in to EMIs at a lower rate of interest for a specific time period.

How balance transfer can be helpful in debt consolidation over the long term?

Let us consider an example of Mr Harish, who lives in a metropolis and currently owns a fleet of cabs. He started with a single cab, driving on his own and with debt consolidation and balance transfer facility, he has made an entire fortune out of it. As of now, he owes a debt of ₹ 4.5 Lakh from an existing auto loan and is paying an interest of 16% per annum on the loan amount. The overall expenses of his loan maintenance are provided in the table below:


ROI (pa)

Loan Amount





(Per Year)


(Per year)

Existing Bank


₹ 4,50,000


₹ 10,943

₹ 1,31,317


New Bank


₹ 3,18,682


₹ 8,314

₹ 99,769

₹ 31,548

Overall difference in the monthly expenditure for the loan => ₹ 10,943 - ₹ 8,314 = ₹ 2,629/-

Calculating the overall expenses on the existing loan;

  • Months to get debt-free: 60 months

In such a scenario, if we talk about availing a low-cost balance transfer, the comparative tentative payments would go as following;

  • Months to get debt-free: 48 months

As the balance transfers are an outstanding opportunity of availing low-cost funds, grabbing a good deal involves good credit history which might help an applicant lower the initial processing fee and other charges applicable on it. 

As it is advised, before applying for a balance transfer personal loan or through a credit card, kindly read the terms & conditions as most banks and credit cards offer a low interest rate for a limited period as the same might vary for different credit levels.


Should you keep your old card after the balance transfer?

After you avail a balance transfer on your existing credit card, a question arises regarding the older one, whether one should keep it or get away with it. One can possibly give it up straightaway as it would attract additional fees and charges with the new credit line availed recently. However, on the other hand, giving up the oldest card would hamper your overall credit score as it shortens your credit history. To know more about how to keep your credit score up to the standards you can read – How to improve your existing credit score?

How to not fall for the debt trap every time you avail a balance transfer?

In the credit-oriented world nowadays, transferring a credit card balance should only be treated a tool to help you get out of your debt faster, instead of using it to minimize the reality of your debt by squeezing your payments for a few months. If you avail the transfer facility for your credit card balance for the right reasons, you must understand the terms of service, and do the math before applying for it as to make sure you’ll come out ahead, and create a repayment plan you can stick with, a balance transfer can help you get out of debt sooner and spend less money on interest.

How to find the best balance transfer facility for your existing loan repayment?

If you want to choose a low-cost balance transfer facility, there are numerous options available in today’s world with various features and benefits. You can simply visit Afinoz, where you can easily explore and compare various balance transfer options being provided by different banks and NBFCs. To get more detailed insights regarding how to choose your bank or NBFC for a balance transfer, Read – Points to look for while opting for a balance transfer.

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