In a Balance Transfer, your entire loan amount is transferred to another bank at lower rate of Interest. In single terms now you just have to pay your EMI to the bank you have transferred you loan, at the new (and lower) interest rate.
Benifit Of Balance Transfer
Reduce interest rates: - The new bank will generally offer you a low interest rate than the original bank, thus decreasing your EMI amount and total interest liability. While switching to a new bank, you can re-negotiate the loan term with the new bank and ask them to extend the repayment tenure.
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