This Diwali Save More With The Balance Transfer


24 Oct 2019 | 3 min read

It’s that time of the year when the entire nation is drenched in the festive fervor. Why not take a look at the options, which will scale up your savings, enhancing the festivity grandeur. Here we will tell you about the ways, how you can save your outgoing expenses.

Most of you must be aware of what is a Balance Transfer. Further adding to your knowledge, here we will tell you when you can do a balance transfer of your existing loan, which will assist you in taking the important financial decision.

Consider these facts while planning to go for balance transfer:

Lower Interest Rates –

If you are paying a significantly higher interest rate towards your existing personal loan, then going for a balance transfer is a wise decision. A difference of 1% or less is not going to bring a major difference, however, balance transfer should be chosen when the difference is more than 1%. It would be beneficial to compare the interest rates with various lenders and then go ahead with the one offering the best rates.

When the loan is in the initial years:

When your running loan is in the initial years, a balance transfer will be a wise choice, if you are displeased with the services of the current lender. A greater part of EMI goes towards the interest payment, during the initial years, therefore transferring the loan during the later years, is not going to save you on the cash outflow. The benefit is not going to be remarkable when the loan is towards closure.

Minimal processing fee and foreclosure charges :

Festivals are a great time of the year when lenders come up with lucrative deals on loans. Along with offering lower interest rates, the processing fee is sometimes waved off. The actual benefit of going for a personal loan balance transfer lies with such schemes. If your current lender does not charge for pre-close of the loan, then the amount saved on balance transfer will be big, saving you on both the processing fee and fore-closure charges. Grab those deals and save big by doing a balance transfer.

When the savings will be bigger than the charges:

Take a close look at the additional charges of processing fees and foreclosure charges along with lowered interest rates. The balance transfer will be impactful in your savings when all the additional charges will be minimal, not adding extra burden on you, of paying the higher processing charges or foreclosure charges.

When you need flexibility in prepayment, tenure and additional funds as top-up –

If you wish to change the tenure of your personal loan by prepaying a certain amount, if you get a hike in your salary, and if this feature is not available with your existing lender, then a balance transfer is a good option. Along with lowered interest rates, should you need an additional amount of funds, then balance transfer may be a good way to get top-up on loans with the new lender with a lowered interest rate.

When there are schemes based on the employment of individuals:

Working for a reputed organization more than often helps to gain additional benefits in many respects, which is applicable for loans too. Salaried professionals associated with reputed organizations are at leverage, to whom the lender offers attractive interest rates on balance transfer. Similar is with self-employed individuals where professionals like Doctors, Architects, Chartered Accountants can benefit from the lower interest rates on balance transfer of loans.

Apply for Balance Transfer

You can significantly get benefited by going for a personal loan balance transfer in terms of big on savings. If you find yourself falling in any one of the above- mentioned criteria, then it is the perfect time to do a balance transfer.

Here is a calculation, to make you understand the concept better:


Interest Rate(p.a)

Loan Amount



Yearly Payment

Yearly Saving

Current Bank


Rs 8 lakhs





New Bank


Rs 5,76,632





Looking at the figures above, it can clearly be seen, what big difference a balance transfer can make, in your monthly cash outflow. You can compare the interest rates of various lenders by downloading the Afinoz app and can apply for a balance transfer with your chosen lender at lowered interest rates and additional features.

You can invest the saved amount on SIP or fixed deposit schemes, and gain greater returns after a certain tenure. It will help you pay off the debts conveniently. Also, those funds will be beneficial for you, in fulfilling additional expenditures of day to day lifestyle, which is a never-ending cycle.

This Diwali, you can transfer your personal loan to ICICI Bank at attractive interest rates starting from as low as 6.90% per annum. 

Use a personal loan balance transfer calculator to find out how much money you can save by transferring your loan from the current lender to a new bank.

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