What is balance transfer of a loan?

What is balance transfer of a loan?

In case a borrower has some outstanding amount of money left to be repaid from an existing loan, they can opt to transfer the loan to a different bank or financial institution. It is done to get a better rate of interest and reduce the amount being paid in the remaining EMIs. However, not all banks, NBFCs and financial institutions offer this facility. Moreover, whether or not you can avail balance transfer of loan also depends on the type of loan. Hence, it is always advisable to find out the policies of your existing as well as prospective lender before you plan for balance transfer of loans.