A personal loan balance transfer can be a better option. If you want to lower the cost of the loan, transferring the amount will be a good choice. This is very beneficial and good for your credit score and credit history. Every process has some pros and cons and before going for it we need to cross check for all.
Pros
The lower interest of rate: Look for all possible interests offered and check if there are changes in the tenure or amount.
Lower tenure: It depends upon your capacity to repay. Lower tenure period makes you debt free early and helps you to be financially more confident.
Paying EMIs: Paying your EMIs on time will increase your credit score if you are paying it on time. It is a great way to make your score better.
Cons
Processing fee: When you switch to the balance transfer better you check first that is it beneficial or not. Because first, you paid a processing fee when you took the loan now if you switch to another bank you need to verify the processing fee.
Security value: The borrower needs to provide collateral as security to the new bank. But in case you have paid a large amount then providing security which cost more than the loan amount will not be a good decision.
Cash outflow: Balance transfer offers you a lower interest rate and you will be so much interested. But lower interest rate leads to a longer tenure period. So better calculate how much you pay back to the lender.
Read more about balance transfer.