The Best 5 Balance Transfer Cards In India

Overusing your credit card may bring you more debt burden than you can handle. Repayment can become a problem when your salary is not sufficient to meet the monthly expenses. In such instances, transferring your outstanding credit card amount to another bank’s credit card and paying back in monthly installments at low interest or no interest rate can significantly reduce your debt burden.

In India, not all banks who provide credit cards facilitate credit card balance transfer, but only a handful of credit card companies have this option.

Following are the top 5 balance transfer credit cards in the country.

SBI Card Balance Transfer

SBI lets you transfer the outstanding on your credit card to an SBI Card at low or no interest rates. You can convert the payment into easy monthly installments.

SBI Card Balance Transfer Interest Rate:

Avail 0% interest rate for a 6-month repayment tenure, and 1.7% p.m. interest rate for a repayment tenure of 180 days. 

SBI Card Balance Transfer Processing Fees:

For the 6 months’ repayment tenure, no processing fees are charged. For the 180 days’ repayment tenure, 2% or ₹199, whichever is higher, shall be charged. 

Individuals who have a Visa credit card can transfer the outstanding in 3 days and other card members will get a cheque within 5 working days.

You can apply for the balance transfer online at the official website of the bank, SMS option, mobile app or by calling up the customer care executive.

You can book a balance transfer for as little as Rs. 5,000 and as much as 75% of your available credit limit. Your maximum BT booking limit will be given to you at the time of booking.

HDFC Bank Balance Transfer on EMI

The eligibility is determined based on the credit card usage of the cardholder. You can check your eligibility by calling up the customer care executive. The attractive features of HDFC Bank Balance transfer are:

• No documentation or paperwork required
• You can choose between a tenure between 9 to 48 months.
• Interest rate of 1.10% is charged per month on the transferred amount.
• Quick disbursal
• EMI as low as Rs. 27 to Rs. 10,000 can be opted.

ICICI Bank Balance Transfer

ICICI Bank Balance Transfer Eligibility:

You need to have a minimum outstanding of Rs. 15,000 on other cards to become eligible for balance transfer with ICICI Bank. The customer should have a good track of record with respect to credit card spends and transactions with ICICI Bank.

Maximum Amount:

One can do a balance transfer of up to Rs. 3 Lakhs.

Repayment Period:

Payment option of 3 & 6 monthly installments can be chosen.

Interest Rate:

It is fixed at the sole discretion of the bank which would vary depending on the customer’s profile.

The mode of fund transfer would be through NEFT or Demand Draft. The customer needs to send the personal and bank details to balance transfer(at)icicibank(dot)com.

Additional Reading: 5 Best Credit Cards with 0% Interest on Balance Transfer

HSBC Bank Balance Transfer

Customers who wish to opt for balance transfer with HSBC Bank can choose the installments of 3, 6, 9, 12, 18 and 24 months. Interest rate at 10.99 to 15.99%p.a. Processing fee of 1.5% (subject to a min of Rs.200) of the balance transfer value will be charged. The following is the interest rates charged based on the tenure chosen.

 

You can apply for HSBC Bank balance transfer by sending an SMS BTR to 575750 or call up the customer care executive for help.

RBL Bank Balance Transfer

Transfer 'n' Pay is an exclusive and pre-approved feature available to select card users that allows you to transfer your balance from any credit card to your RBL Bank Credit Card and pay back in low-cost EMIs of your choice. You have the option of repaying the money over three, six, or twelve months with a minimum processing cost.

Protects your credit score

You can repay the Total Amount Due on other credit cards on time with Balance Transfer on EMI and avoid a bad credit score due to non-payment.

Get protection against high finance costs

You do not have to default on your payment and suffer excessive finance costs of 42-45% on the entire outstanding amount if you use Balance Transfer on EMI.

Repayment ease

With Balance Transfer on EMI, you can pay EMI for the duration of your choosing without any added repayment pressure.

Take advantage of interest-free retail purchases

Even if you have a Balance Transfer EMI on your RBL Bank Credit Card, you can continue to use it for retail purchases up to your credit limit.

Important Things You Should Know About Credit Card Balance Transfer

If you plan to transfer the balance on your credit card to another, you should know the following things to make an informed credit decision.

• Processing Fee: Credit card balance transfer is not done for free. You will have to pay a certain percentage of the outstanding principal as the processing fee. It would range between 1% to 3%.
• Impact on Credit Score: Whenever you apply for a new credit, it involves a new credit check. Every hard enquiry can have an impact on your credit score as well. The impact is higher if the credit application gets rejected.
• Interest Rate Offer: Some lenders try to attract new customers by offering zero interest rate on repayment. Though it could be beneficial, you must remember that it is only for a specific period which could be between 2 to 6 months. After that normal interest rate will be applicable.
• Eligibility: Not all the customers who apply for a balance transfer gets approved. Every lender has certain eligibility criteria which needs to be fulfilled. Banks generally look for candidates who have a good track record of repayments, credit cards spends and transactions. Moreover, the card holder should have used the existing credit card for a minimum duration as specified by the bank.
• Maximum Amount: If you have a huge debt on your current card and want to transfer it to another bank, watch out, as you may not become eligible for the entire amount. You can transfer up to 80% of the credit limit of your new or another card. If your existing debt is higher, it could be difficult to do a balance transfer.

Additional Reading: What is Balance Transfer on Credit Cards?

Bottomline

Credit card balance transfer is not an option that can completely shed your debt burden. It’s an option that can help pay your debt at low or no interest rate. If you qualify for a credit card balance transfer, it is certainly a lucrative option that can help pay your debt at better terms. However, you should also consider the fees and conditions that are applicable on the balance transfer.

FAQs of The Best 5 Balance Transfer Cards In India

1:What is a credit card balance transfer? 

A credit card balance transfer is a facility offered by credit companies to transfer your outstanding credit card amount to another bank’s credit card and pay back in monthly installments at low interest or no interest rate can significantly reduce your debt burden.

2:Is there a processing fee to do a credit card balance transfer? 

Yes, a processing fee of 1-3% could be charged for a balance transfer. 

3:Can I do a complete balance transfer of my outstanding credit card dues? 

Yes, you can transfer your total outstanding credit card dues to the new credit card. 

4:How soon should I repay the outstanding balance after a balance transfer? 

Credit card companies usually offer an interest free period of up to 180 days to repay the total outstanding. 

5:Can a credit card balance transfer affect my credit score? 

Yes, doing a balance transfer is akin to applying for a new credit card, resulting in a hard check. This affects your credit score to some extent. But with a new credit card you have the opportunity to improve your credit score.