A balance transfer is a type of transaction in which debt is moved from one account to another. For those paying down high-interest debt, such a move can save serious money on interest charges if done strategically. For example, debt that's moved to a new bank loan Proposal with a 0% introductory APR offer on balance transfers could potentially be paid off interest-free.
Balance transfers come with certain costs and limitations, though. Generally, you'll have to pay a balance transfer fee — usually 1% to 5% of the total transferred. And if your balance transfer limit is low, you might not be able to transfer your full balance.
• Salary Certificate (original) from employer.
• Form 16/IT Returns for the past 2 financial years
· IT Returns/Assessment Orders copies of the last 3 years.
· Challans as proof of Advance Income Tax payment.
· Proof of business address for non-salaried individuals.
· IT returns/Assessment Orders copies of the last 3 years.
Balance transfer credit cards charge a significantly lower interest rate when compared to finance charges. Credit card finance charges (interest rates) are about 3.5% p.m. while the interest rate on a balance transfer is usually around 1.8% per month. Some card providers may also offer 0% interest rate. Lower interest rate means lower financial burden.
Lowered interest rates will make it easier for the cardholders to make payment and hence stabilize their credit score. They can even improve it with timely payments.
Credit card providers offer an interest-free period on new purchases post balance transfer as well. This way customer can make new purchases without incurring interest rate on it.
Credit card providers sometimes offer teaser rates or other introductory offers to customers. These benefits may include longer interest-free periods, low interest rates, etc.
Customers will be charged a processing fee for a balance transfer that can range anywhere between 1% and 3%. Some banks may also charge a flat fee.
The interest charged on Balance Transfer can be 0% for a certain period. But, the interest rate is usually around 0.75% and may go up to the particular credit card’s finance charge.
Resident Indian: Salaried or Self-employed
Vintage of at least six months
Good repayment track record
Repayment Track Record of Existing Loans
You must be a citizen residing in India.
You must be self-employed with at least 4 years of experience in running a business or 3 years of experience as a Doctor/CA.