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Personal Loans:

People prefer personal loans as they are hassle-free and convenient. Personal loans are tailored in accordance with the client needs. Personal loans cover all aspects of loans. The personal loan for existing loan transfer refers to a personal loan taken to pay off the expenditure incurred in transferring any existing loan. In technical terms, the personal loan for existing loan transfer is granted when a borrower wants to transfer an existent loan to spousal name or any family member.

Personal loan for existing loan transfer VS Debt consolidation:

Personal loans carry a lot of convenience features which caters them easily to the Indian middle class. These loans are preferred to debt consolidations loans. Debt consolidation loan programs come with a lot of baggage. They are usually granted to corporate houses and applicants with a number of loans. In contrast, the personal loan for existing loan transfer covers only one loan. It can be granted because the applicant is transferring a loan to spousal or family member. This is a personal secured loan. This means that the applicant has to provide collateral to avail of this facility. The collateral is usually the original loan agreement documentation and the loan transfer papers.

This loan is open only to Indian middle class residents. Hence the application has to carry proof of Indian residency, full age, gender, address and valid passport details This loan is open only to Indian middle class residents. Hence the application has to carry proof of Indian residency, full age, gender, address and valid passport details All original loan agreement papers stating type of original loan, name of lender, term of loan, rate of interest, repayment schedule and other details NRI's are not eligible to apply for this loan Name, age and other relevant details of member to whom the loan is being transferred to Documentation stating reasons for loan transference

This loan is granted when an applicant is no longer able to meet the loan repayments and wants to transfer the loan amount to spouse or any other family member. This happens when: Applicant is chronically physically debilitated Applicant is deemed to be suffering from any mental illness In the above cases, the loan application is usually made by the spouse and family member. The application has to carry medical proof of the applicant's medical condition Applicant is no longer employed Applicant becomes a self-employed worker or freelancer In such cases, the loan amount given covers 60% of the transfer expenses and the transferred loan.

The rate of interest is usually assigned a fixed percentage value. The repayment schedule is flexible but tight. The loan amount has to be repaid within a scheduled time frame. Usually the repayment terms of such loans is covered in 48 EMIs.