Know More About Bajaj Finance Loan Balance Transfer
Talib Saggar, a small-scale entrepreneur from Mumbai, has an interesting problem. His Bajaj finance loan is not fully paid to him. To avoid default, he takes the help of indirect lenders who provide loans at cheaper rates of interest. This is the main aim of this type of financing called ‘Bajaj finance’.
Bajaj Finance refers to the agreement between borrowers and lenders for speedy financing of loans. In this type of financing, the terms are agreed upon between the parties. These loans are short-term in nature and are repayable within a period of one year. The rate of interest charged on this type of financing is different from the prevailing market rates. In general, the rate of interest charged is around twelve to fifteen percent per annum.
You have to pay off your loan balance within the time given to you for its repayment. The repayment date is determined according to your income and the expenditures incurred. For this purpose, you have to make your financial and personal statement to the lender. A detailed report is required along with the income proof and the expenditure proof.
You have to pay off your Bajaj finance loan balance by buying some assets. If you have sufficient collateral then you can buy some valuable assets with your loan balance. On the other hand, if you do not have the required collateral then you have to compromise with the value of your existing asset. Hence this type of loan balance is very useful to cater to short-term needs.
Bajaj finance loan balance allows you to meet your short term needs by repaying the borrowed amount in smaller repayment schedules. For example, you have to repay your loan balance after one month. Instead of repaying the full amount every month, you have to make payments in proportions. You can choose to make larger payments initially so that you will have extra cash left after meeting all the expenses and costs for a short period of time. This helps in building up your credit score.
There are different schemes under which people get their finance loan balance. They include the repayment of the interest-free period, the low rate of interest, and the flexible repayment schedule. The interest-free period varies from six months to five years. With this option, you can choose the time period that best suits you for your loan balance.
Flexible repayment schedules enable you to make smaller monthly payments if the financial conditions are not suitable for paying large amounts at one go. For instance, if your regular income has been reduced due to any reason, you cannot afford to make regular payments on the long term. In such a case, you have to take a small loan balance and repay it over a period of time. However, you can extend the repayment period as per your convenience.
These loans can be used for a number of purposes. You can purchase a car of your choice, buy a holiday home or even pay off some debt. You can avail of these loans at a low rate of interest to meet any of your personal requirements. You can find information about these loans on the internet. An online search will give you a list of different finance companies that offer these loans.
A Bajaj finance loan balance transfer is not an easy task. You have to meet a lot of paperwork before you are allowed to transfer the loan balance. You can take the help of an expert who can guide you through the entire process. The loan balance can only be transferred if you can repay the same on a timely basis with the help of a decent source of income.
Another important feature of the Bajaj finance loan balance transfer is that you do not have to enter into a long term contract. The loan comes with a six to twelve-month repayment term. This means that you do not have to get into a debt trap once you complete repaying the loan amount. Once you have paid back the entire loan, you will no longer be a part of the Bajaj finance loan balance transfer scheme. You can keep switching over to another company in this case. You can continue making regular monthly payments until you complete the entire loan term.
If you have a good credit record then there is no chance that you will have to pay a higher rate of interest in case you have opted for a Bajaj finance loan balance transfer. The finance loan company usually evaluates your current financial situation before making a decision. Hence, you have the scope of changing the provider if you find that you are getting better deals elsewhere.