Loan Takeover & Balance Transfer

Loan takeover or balance transfer is the process of moving your existing loan from one lender to another to benefit from lower interest rates, better terms, or improved service. It helps reduce your EMI burden and total interest cost.

Most types of loans are eligible for balance transfer including personal loans, home loans, business loans, loan against property, car loans, and credit card outstanding balances.

Savings depend on the interest rate difference between your current and new loan. Typically, you can save 2-4% on interest rates, resulting in significant monthly EMI reduction and overall interest savings.

Charges include processing fees for the new loan (0.5-4% of loan amount) and foreclosure charges for the existing loan (if applicable). However, long-term savings usually outweigh these one-time costs.

The loan balance transfer process typically takes 7-15 days, depending on documentation, approval process, and coordination between existing and new lenders.

Yes, many lenders offer top-up loans during balance transfer. You can get additional funds over your outstanding amount, subject to eligibility and repayment capacity.

Required documents include existing loan statement, identity proof, address proof, income documents, bank statements, and NOC from current lender.

The best time is during the early years of your loan tenure when you pay more interest. Also consider transfer when your credit score has improved or market rates have decreased.