Rate of Interest Graph
Rate of Interest
A balance transfer is a process of transferring the outstanding balance of a loan from one bank to another at a lower interest rate. If anytime you are not satisfied with the bank’s services and accessibility, then you can go for the business loan balance transfer. The prime motive for Balance Transfer is to reduce the EMIs by switching over to a lower rate of interest, to a new lender. It is a great feature to reexamine your debt, make changes to it, and also tweak it according to your requirements.
Go for it when you find the following benefits -
1. Lower interest rates – Balance transfer should be done if the interest rates offered by your existing lender on business loan are higher. You can evaluate the interest rates with other lenders and can switch to the lender offering a lower rate of interest rate.
2. Need to save more – When a balance transfer is done to avail the loan at lower interest rates, it eventually leads to a decrease in the outgoing EMIs. This helps in saving those extra amounts, which can be utilized for the expansion of business. The more the saving on the debt amount, the more beneficial it is in the long run.
3. Better Services- Few lenders offer benefits on business loan balance transfer like zero processing fees, waiver of the last EMI and so on. You can thoroughly evaluate the additional features of other lenders and then choose it accordingly for the balance transfer. It is advisable to go for renowned lenders, who are the top players in the market and avail great features customized according to your need.[l1]-
1. Compare the before and after deal – When you have decided to go for a balance transfer, make sure it a profitable one. The new lender should provide you with low interest rates and also should not increase your tenure; else there is no point in taking ahead the process further.
2. Consider processing fee and other charges involved - The processing fee charged by the new lender also should not be a burden. Go for the new deal, only if it is a profitable one.
3. Read the fine print carefully – To avoid regretting later by signing the official deal of business loan balance transfer, it is significant to carefully read the fine print. Fine print is the complete legal document, which mentions the terms and conditions, which you might agree to by signing the document before reading it. Make sure to go through each and every detail, mentioned in the document.
Suppose Mr. Kapoor has an existing business loan outstanding amount of Rs. 20 Lakhs for tenure of 4 years. He can transfer the existing business loan to a new lender at a lower rate of interest. By transferring a 4 years business loan of Rs. 20 lakhs from 16.49% to 15.65%, EMI can be reduced from Rs. 57,183 to 56,322 So, the total savings on the interest after balance transfer is Rs. 861 per month
In the case of a balance transfer, the existing loan of the applicant is transferred to a new lender. Once the balance transfer is done then you can enjoy the low-interest rate and save on your EMI. Let’s have a look at how this entire process works:
Process of Business Loan Balance Transfer
If you want to go for a business loan balance transfer, take a look at the process below:
If you are planning to do a business loan balance transfer, you will have to bear a few additional charges of processing fee, foreclosure charges, and stamp duty on the loan agreement.
Use the business loan balance transfer calculator to figure out the reduction in EMIs and the cost of the loan, resulting from a business loan balance transfer. Using business loan balance transfer calculator is pretty simple; complete the following steps to find out profits from the transfer of your balance
Depending on the credibility of the buyer, there are few banks which waive off the processing fee and can also waive off the last EMI as offers on transfer of your balance. It is vital to evaluate the complete details, about the new lender before taking the decision on balance transfer.
Get complete assistance on business loan balance transfer with hassle free documentation process from Axis Bank.
Want to save on the hefty EMI outflow towards your business loan? You can now save on the installment amount of your business loan with the balance transfer from Kotak Bank.
Looking to refinance your business loan at lower rates of interest? Enjoy attractive interest rates on business loan balance transfer with Bajaj Finance.
Are you tired with the lengthy documentation process involved in transferring your business loan? You can get speedy approvals on business loan balance transfer from the leading bank of the country, SBI bank.
Enjoy flexible repayment tenures on business loan balance transfer with ICICI bank.
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