While it is beneficial to opt for a personal loan balance transfer, you should keep the following points in mind:
- Carefully assess the new offer. It is always advisable to calculate how much you are going save after the balance transfer. Evaluate the difference between your old and new EMI amounts and choose tenure as per your financial status.
- Check how much you have to pay. This is the sum total of all the charges and fees you have to pay in order to avail the personal loan balance transfer. Generally, an applicant has to bear the prepayment charges of the previous lender and the processing fees of the new lender for a personal loan balance transfer.
- Read the loan agreement. You should always read the fine print carefully to be aware of the terms and conditions before signing the loan transfer agreement.
Thus, you should consider both the benefit and long term implication of the personal loan balance transfer.