With the recent news about NBFC increasing their interest rates on lending by 2%, the whole market has gone on frenzy. There is a lot of mass panic happening and people are confused as there is no clarity on what should be done. There are many who have taken long term loans like a home loan or a loan against property. There are also people who have taken loans like personal loan or a car loan which are short term in general.
Do you know what’s similar in them now?
The entire loan EMI’s are going to get costlier after NBFC increasing their interest rates. Yes, with this news, nothing would be cheap anymore and hence it is obvious the common man in India will suffer. Their savings will take a hit and maintaining a budget will get tougher.
What can they do?
Taking a personal loan as example, since we know it is a short term loan, you will only have to pay loan EMI’s until a maximum of 7 years*. But with such news, taking a personal loan balance transfer can help you reduce your entire burden.
How can my burden be reduced?
A personal loan balance transfer takes place after you move your loan from the existing lender to the new lender. Your burden can be reduced because of these three benefits;
Tenure gets reduced:
Once you move your loan to a new lender, you can renegotiate on the remaining tenure and reduce it. Doing this will help you finish the loan repayment quickly and you will be debt free earlier than ever.
Interest rate is lower:
The most obvious point is having a lower interest rate. That’s the highlight of why you would switch from your old lender to a new one. If you are paying a lower EMI you can increase your savings. But beware! Before you could take this call, please calculate if shifting this short term loan will save you money or cost you more as there are many costs involved in shifting the loan.
Better terms and conditions:
In case you have a better credit score, you can renegotiate for better terms and lower down the interest rate even more. You can also look for better terms and conditions from the new lender which was not present with the old lender.
Hence a personal loan balance transfer can help you consolidate debts and reduce your burden. Save money and make the smart choice. To help you along with the process, you can visit Ruloans and compare options and quotes of different Banks. Get the best deal today via Ruloans.