Top 6 banks that make credit card balance transfers easy and affordable

When used judiciously, credit cards can offer several benefits like instant discounts/cashbacks, up to 50 days interest-free credit period, complimentary airport lounge access, reward points, etc. However, if the monthly bill is not paid by the due date, the cardholder has to pay finance charges and monthly interest of up to 3.75% on the outstanding. 

Most banks offer a balance transfer (BT) facility wherein a credit cardholder can transfer their outstanding balance from one credit card to another at a lower interest rate and easy on the pocket instalments. In this article, we will explore the various balance transfer options that some banks offer on their credit cards.

SBI Card balance transfer

SBI Card offers the following balance transfer options.

0% interest for 60 days: Under this option, the cardholder will get the BT option at a 0% interest rate for 60 days. There will be a processing fee of 2% of the transfer amount or Rs. 199, whichever is higher.

1.7% interest per month for 180 days: Under this option, the cardholder will have to pay an interest of 1.7% per month or 20.4% per annum. There will be no processing fee.

Balance transfer on EMI for 3 months: The monthly interest rate will be 0.83% to 0.96% (10% to 11.50% per annum). The interest rate will depend on the cardholder’s credit score. The higher the credit score, the lower the interest rate. The processing fee is 1%. The per Rs. 1,000 BT, the EMI will be in the Rs. 339 to Rs. 340 range.

Balance transfer on EMI for 6 months: The monthly interest rate will be 1.02% to 1.27% (12.25% to 15.25% per annum), and the processing fee is 1%. The per Rs. 1,000 BT, the EMI will be in the Rs. 173 to Rs. 174 range.

For BT on EMI foreclosure, a 3% fee will be levied on the outstanding principal amount.

The balance transfer can be booked for a minimum of Rs. 5,000. The maximum amount for BT is 75% of the available credit limit on the SBI card. On BT repayment in full or partial, additional BT can be availed to the extent of the existing BT repayment. If the BT maximum limit has been exhausted, a further amount can be availed if the existing credit limit is enhanced.

HSBC balance transfer

With an HSBC BT, you can choose a repayment tenure between 3 to 24 months (3, 6, 9, 12, 18, or 24 months). The interest rate range is between 10.99% to 15.99% per annum. The minimum amount for the BT is Rs. 5,000. The processing fee is 1.5%, subject to a minimum of Rs. 200.

The BT will block the available credit limit on the HSBC credit card up to the amount of BT on EMI availed. The maximum amount that a cardholder can transfer from the other bank credit card to the HSBC credit card is up to 95% of the credit limit on the HSBC credit card. The BT amount is subject to the available credit limit as of the approval date.

On the completion of the BT tenure, the balance amount (if any) will be merged with the other outstanding on the credit card and regular rate interest will be charged. For foreclosure of BT on EMI, a prepayment charge of 3% will be applicable on the outstanding loan amount. The prepayment charge will be subject to a minimum of Rs. 250.

Kotak Bank balance transfer

With Kotak Bank, you can avail of the balance transfer facility for a minimum of Rs. 2,500. The maximum amount allowed is up to 75% of the credit limit on the Kotak Bank credit card. The processing fee is Rs. 349 + GST per Rs. 10,000 BT. The BT approval is subject to credit and bureau checks. The BT facility cannot be availed if your Kotak Bank credit card was issued less than six months back.

The BT facility can be availed for a period of 90 days. If the BT payment is made within 90 days, no interest will be charged. The BT facility can also be availed on an EMI basis for 6 months. The interest rate on ‘BT on EMI’ is 18% per annum (reducing balance method).

ICICI Bank balance transfer

ICICI Bank offers a balance transfer facility for a minimum of Rs. 15,000. The maximum amount allowed is up to Rs. 3 lakhs. The payment plans include 3 and 6-month instalments.

RBL Bank balance transfer

RBL Bank offers the balance transfer facility under the ‘Transfer ‘n’ Pay’ facility. The cardholder can choose from EMI repayment tenures of 3, 6, or 12 months. The processing fee for the 3-month tenure is 2.99% or Rs. 750, whichever is higher. There is no interest charged.

For the 6 and 12-month tenures, the processing fee is Rs. 499, and the interest charged is 21% per annum (reducing rate). For foreclosure, a 3% fee will be charged on the outstanding principal.

Standard Chartered Bank balance transfer

Standard Chartered Bank provides a BT facility of up to Rs. 5 lakhs with zero documentation. The interest rate charged is 0.99% per month for the first 6 months. After 6 months, the regular interest rate applicable to the cardholder will be charged.

Important note: All the BT options for all banks discussed in this article are as of the end of January 2025. Please refer to the bank website or customer care for the latest information.

Should you go for a balance transfer?

If you have a credit card outstanding and are unable to pay it, the bank usually charges 3.5% to 3.75% interest per month. It translates into a substantial annual interest rate of up to 45%. Instead of paying such a high interest rate, you should check with the card issuing bank if you can convert the outstanding into easy EMIs or a personal loan. If you are unable to get any of these options, you should check for other banks that offer the balance transfer (BT) facility.

The BT facility allows you to transfer the outstanding from one credit card to another and repay in easy monthly instalments at a lower interest rate. Thus, the BT facility can help you save a lot of money on interest payments by reducing the monthly interest rate from up to 3.75% to up to 1.7%. You may avail of the BT facility if there are no other better options available.

Gopal Gidwani is a freelance personal finance content writer with 15+ years of experience. He can be reached at LinkedIn.