It is a widely known fact that a personal loan is one of the most popular loan options among customers with which they fulfill their various needs. The reason: the personal loan is an unsecured loan which means you don’t need to provide any collateral against the loan amount. Other than this, features like Minimal documentation, quick disbursal, fast processing are some of the features that make it so popular. Vijaya Bank Personal Loan Interest Rates is one of the important reasons that make Vijaya Bank one of the most popular choices among customers.
Since you are not submitting any kind of collateral against the loan amount, the lender is at greater credit risk. To minimize this, lenders check minimum factors. But do you know there is one facility with which you can opt for lower Vijaya Bank personal loan interest rates from your existing higher rates? Well, this is known as Personal Loan Balance Transfer Facility.
In this article, we will tell you everything about this and how interest rates play a major role in this. So, keep reading.
Impact of Vijaya Bank Personal Loan Interest Rates on EMI amount after Balance Transfer
So, you must be thinking about how the Balance Transfer facility helps you lower your EMI amount and ensure that you achieve maximum savings. First of all, understand that this facility ensures you transfer your outstanding principal balance at lower Vijaya Bank Personal Loan Interest Rates.
To know how much you can save with this facility, let’s understand it with an example. Suppose an individual has a 5-year personal loan of INR 10 lakh at an interest rate of 15.99% per annum. For this loan amount, he must have been paying an EMI of INR 24,313.
Now, let’s say after paying EMIs for 24 months without any fail, he wants to opt for Balance Transfer to Vijaya Bank at a lower interest rate of 13.00% per annum. So, how much money can he save?
So, the interest paid during these two years = INR 2,75,150
While the outstanding principal balance at the end of 2 years = INR 6,91,644
So, the new EMI amount at an interest rate of 12.99% per annum = INR 23,301
The interest outgo will be INR 1,47,188 according to the current interest rate.
So, the total interest paid during these 5 years = INR 4,22,338
Estimated Savings when it comes to EMI amount = INR 1,102 per month (24,314 – 23,301)
So, you can see choosing the personal loan balance transfer facility at a lower interest rate of 12.99% per annum, he can save around INR 1,000 per month on choosing the lower Vijaya Bank Personal Loan Interest Rates.
You must be wondering how to do all these calculations? Well, for this you can use Vijaya Bank Personal Loan EMI Calculator. To use this tool, you just need to fill in a few details such as Required Loan Amount, Rate of Interest and Tenure (maximum of 5 years). As soon as you put these details into it, you will get the EMI amount, Interest Outgo, and Total Amount payable within a second. So, you don’t need to worry about tiring calculations as it will take care of it.
Things to Keep in Mind before Choosing Balance Transfer Facility
There are a few important things before choosing the lower Vijaya Bank Personal Loan Interest Rates while opting for Balance Transfer. We are showing them below.
- You will need to pay a certain processing fee that depends on the principal outstanding balance amount or it can also be a flat amount.
- Your credit score must be good (750 or above). Also, Vijaya Bank checks if you have been repaying your EMIs on time. In case you have missed any EMI, you may face a delay in approval or even rejection.