Balance Transfer on Credit Cards

Overview

Balance Transfer on Credit card is one the best option to pay off your existing credit card debt, unless you can manage the funds from your own sources. With balance transfer, you can simply combine multiple credit card debt into one and pay offer in single monthly installment. Moreover, banks/FIs offers competitive interest rate with zero to nominal processing charges.

Benefits of Credit Card Balance Transfer


Lower Interest Rate

By transferring your existing credit card debt to another bank/fi, you can choose to pay low interest rate on the debt as compared to your current credit card provider. Most of the banks/FIs offers lower interest rate on balance transfer. Hence, you will have multiple options of credit card balance transfer on low interest rate which will help you pay off your credit card debt easily.

Pay the debt in Single Monthly Installments

Credit card balance transfer is a great option is a great option for a credit card holder who have outstanding debt on more than one credit card and unable to pay off the monthly EMIs for all of them separately. By opting for balance transfer facility on credit card, you can simply combine all of your credit cards' debt into one account and simply pay it in one EMIs as compared to multiple EMIs otherwise.

Easy Transfer Process

Opting for credit card balance transfer facility is rather easy then applying for personal loan to pay off the debt or lending money from any different source. You can simply apply for the balance transfer online or at your home branch. Apart from it, you can also simply opt for it by calling the bank's credit card helpline. Moreover, most of the banks demands zero to minimal documentation which makes the process easy and quick.

Buffer Time

When you opt for credit card balance transfer service, the chosen bank/fi offers you a specific time span called "Buffer Time". During this period, the bank/FI charges your zero to nominal interest rate as compared to interest rate applicable without buffer time.

Drawbacks of Credit Card Balance Transfer


Reduced Credit Limit

By availing balance transfer facility on credit card, your credit limit get reduced equivalent of the availed amount. For an example, if you book balance transfer for amount equal to Rs. 50,000, then your current credit limit will be Rs. 50,000 less than your actual credit limit until you repay the amount.

Eligibility Criteria for Credit Card Balance Transfer


  • Applicant must have a clean repayment track with the bank.
  • Applicant must be the primary cardholder of the credit card debt account being transferred.
  • Applicant must have a good credit score or above.
  • The amount you are applying for should not be more than your existing credit card limit.
  • Applicant must be utilizing the existing credit card for at least 6 to 12 months.

Credit Card Balance Transfer Offers


State Bank of India

SBI offers a minimum of Rs. 5,000 to maximum upto 75% of your available credit card limit.

Offers Applicable Interest Rate Processing Charges Tenure
Offer 1 0% 2% of the balance transfer amount
Min Rs. 199
60 Days
Offer 2 1.7% per month NIL 180 Days

ICICI Bank

ICICI Bank offers upto maximum Rs. 3 Lacs for Credit Card Balance Transfer, whereas the minimum outstanding on the other bank’s credit card should be at least Rs. 15,000. ICICI Bank offer two offers, one with 3 months period and second with 6 months period.

HSBC Bank

HSBC Bank offers balance transfer facility with multiple tenure options such as 3 months, 6 months, 9 months, 12 months, 18 months and 24 months. The minimum amount for balance transfer should be above Rs. 5,000 and charges processing fee equal to 1% of the balance transfer amount (minimum Rs. 149).

Offers Applicable Interest Rate Processing Charges Tenure
Offer 1 1.08% per month 1% of the balance transfer amount
Min Rs. 149
3 months
Offer 2 1.08% per month 1% of the balance transfer amount
Min Rs. 149
6 months
Offer 3 1.08% per month 1% of the balance transfer amount
Min Rs. 149
9 months
Offer 4 1.08% per month 1% of the balance transfer amount
Min Rs. 149
12 months
Offer 5 1.25% per month 1% of the balance transfer amount
Min Rs. 149
18 months
Offer 6 1.25% per month 1% of the balance transfer amount
Min Rs. 149
24 months

HDFC Bank

HDFC Offers multiple tenure options like 9 months, 12 months, 24 months, 36 months and 48 months with interest rate equal to 1.10% per month. And, one can avail upto maximum Rs. 5 Lacs for balance transfer.

Kotak Mahindra Bank

Kotak offers minimum Rs. 2500 to maximum 75% of your existing credit card limit. And, charges processing fee equal to Rs. 349 for each Rs. 10,000. Moreover, if you repay the balance transfer amount within 90 days then you receive zero interest rate on all of your new purchases on the card.

Standard Chartered Bank

SC Bank offers amount upto Rs. 5 Lacs for balance transfers on credit cards. Where applicable interest rate is equal to 0.99% per month for the first 6 months after balance transfer and 3.49% per month after that.