Maximize Savings with a Personal Loan Balance Transfer | Unity Bank
5 min read | 3 months ago
Do you know how one slip-up can cause a domino effect when you’re juggling multiple bills? Suddenly, you’re not just paying for the loan—you’re paying extra fees, high interest and maybe even late charges. It can feel like a never-ending cycle. But imagine if you could cut down those extra costs and make managing your loan a bit easier.
That’s where a personal loan balance transfer comes in. This option can help you save on interest, lower your monthly payments and bring some breathing room back into your budget. Let’s dive into how a personal loan balance transfer can benefit you.
1.Lower interest rates
When you transfer a personal loan, you can take advantage of a lower interest rate offered by a new lender. This reduction lowers the total interest costs over the loan’s life, which directly decreases your monthly payment. This saving allows you to reallocate those funds to other financial priorities, making your loan more affordable and less of a financial burden.
2.Loan consolidation
With a balance transfer, you can consolidate multiple debts into one loan, simplifying your repayment process. Instead of juggling various monthly payments, you’ll only have one due date to remember. This not only reduces the stress of managing multiple loans but can also make budgeting easier as it provides a clear view of your debt. Consolidation through a balance transfer offers both convenience and better financial control.
3.Better repayment terms
A balance transfer allows you to renegotiate loan terms, potentially offering benefits like flexible EMI (Equated Monthly Instalments) schedules or lower prepayment penalties. New lenders might provide more favourable conditions, letting you customise repayment plans that align with your financial situation. Improved terms can give you more control over loan repayments, allowing you to reduce the overall financial strain of the loan while adjusting to changes in your income.
4.Manageable monthly payments
By securing a lower interest rate or opting for an extended repayment tenure, a balance transfer can reduce your monthly EMI. Lower EMIs make repayments more manageable, easing the strain on your monthly budget and freeing up funds for other expenses. This way, you maintain a smoother cash flow, making it easier to handle unexpected costs or invest in savings.
5.Extended tenure
When transferring a loan, lenders might allow you to extend the repayment period, spreading out the loan’s cost over a longer duration. An extended tenure reduces the EMI amount, making it easier to pay on a monthly basis. While this might increase the total interest paid, it offers a practical way to reduce immediate financial pressure and keep monthly expenses within your comfort zone.
6.Top-up loan facility
A top-up facility allows you to borrow additional funds on top of the existing loan amount during a balance transfer. This extra cash can be used for urgent expenses or planned projects without needing to apply for a new loan. It provides a convenient way to access more funds under favourable terms, leveraging the balance transfer to meet evolving financial needs while keeping things simple.
Get personal loans at the best terms with Unity Small Finance Bank
Unity Small Finance Bank simplifies the personal loan process with quick, fully online approvals that take just minutes. You can apply easily through the digital platform and once eligible, access funds without delay. With flexible repayment terms, you can choose an option that suits your financial needs, whether it’s short-term or up to 36 months. For eligibility, you require a credit score of around 675 or higher, which enhances the likelihood of approval at a favourable interest rate. The process is both efficient and straightforward, so apply and get started on your financial journey with ease.
About Unity Small Finance Bank
Unity Small Finance Bank is committed to making banking simpler and more accessible for everyone. Our services include Savings Account, NRI account, Current Account, Fixed Deposits, and Personal Loans offering flexible tenures and attractive interest rates. We also offer financing options like MSME Loans and Microfinance to support businesses and underserved communities. Learn more about Unity Small Finance Bank here.
