What is a Balance Transfer?
Balance transfer is a process where you transfer outstanding debt from one credit card or loan to another credit card or loan with a lower interest rate, lower fees, or better repayment terms.
Types of Balance Transfer:
- Credit Card Balance Transfer
- Loan Balance Transfer
- Personal Loan Balance Transfer
- Home Loan Balance Transfer
- Business Loan Balance Transfer
Benefits of Balance Transfer:
- Lower interest rates
- Reduced monthly payments
- Savings on interest charges
- Simplified finances
- Improved credit score
- Flexibility in repayment
- Avoidance of late fees
Eligibility Criteria:
- Outstanding debt on existing credit card or loan
- Good credit score (600-750)
- Stable income
- Age: 21-60 years
- Residence: Indian citizen
Documents Required:
- ID proof (Aadhaar/PAN)
- Address proof (passport/driving license)
- Income proof (salary slips/bank statements)
- Outstanding debt statement
- Credit report
Balance Transfer Process:
- Check eligibility
- Choose balance transfer option
- Apply for balance transfer
- Pay off existing debt
- Repay transferred debt
Top Balance Transfer Providers:
- HDFC Bank
- SBI
- ICICI Bank
- Axis Bank
- Bajaj Finserv
- Tata Capital
Things to Consider:
- Interest rate
- Fees (processing, origination)
- Repayment tenure
- Credit score impact
- Loan amount
- Debt-to-income ratio
- Balance transfer charges