Are you trying to find ways how to make repayment for loans you borrowed from licensed moneylender easier for you? Always check out moneylender review from Smart Loan Directory before getting a loan. Aside from the actual amount of your loan, it is the interest rate that you should worry about. So here we give you an easy trick on how to save on interest using Balance Transfer.
Balance Transfer for Loans from Licensed Moneylender
In its simplest definition, a balance transfer is the process of transferring a part or all of your debt balance from one licensed money lender credit to another. This is done to save on interest repayments and consolidate monthly payment in a more manageable way.
We discuss here an example of Balance Transfer. In here, a short-term loan may not charge any interest up to 12 months (interest savings). You can also enjoy a flexible repayment scheme wherein you can pay whichever is higher of $50 or 2.5% of statement balance. Finally, you can put all of your other credit balances into one credit card.
Here’s an example how of Balance Transfer can help you manage loan repayment’s interest. The numbers were simplified for illustration purposes only. The interest savings shown are based on 24% p.a. The interest rate on other banks’ credit cards over 6-month and 12-month repayment period and also a processing or administration fee:
|Based on $5,000 Outstanding Balance||6 Months||12 Months|
|24% p.a. interest from other bank’s credit card||S$600||S$1200|
|Interest from Cashline or DBS/POSB Credit Card Balance Transfer at 0% p.a.||S$0||S$0|
|One-time processing or administration fee||S$125 (2.50%)||S$225 (4.50%)|
|Savings||S$475 (79% Savings)||S$975 (81% Savings)|
How to Apply for Balance Transfers?
So here’s how you can make that change in managing your finance through balance transfers:
1. First, use your ibanking/mbanking/ATM or credit/debit card to log-in.
2. Then select the amount and the tenure you want to apply for.
3. Next, submit your application online, but you may need to provide supporting documents if you are a first-time customer. However, for existing DBS/POSB clients, no paper works are needed.
4. Then if your Balance Transfer application is approved, the amount will be taken from any credit balances available in your chosen credit card or Cashline account.
5. Finally, the amount transferred will be credited into your designated Current or Savings accounts.
What other tricks to make repayments for the loan from licensed moneylender you know? Share them with us!