Direct selling agents are individuals employed by lenders to convince existing borrowers to opt for a home loan balance transfer. The process often appears simple and beneficial, requiring you to merely submit a few documents. This may seem more damaging for the lender, but in reality, it is equally, if not more, damaging for the borrower. Here are 6 reasons why you should steer clear of such agents. 

  • They use all sorts of methods to convince you:

The primary goal of a direct selling agent is to sell the competing lender’s services at all cost. Even if you are happy with all the services of your bank, the agents will try and lure you with various offers and incentives to make you reconsider your decision. You may get drawn into their talks and the schemes may be original too. However, there could be hidden terms that you could discover later that may make you regret your decision.

  • It makes matters inconvenient for you:

Applying for a home loan in itself requires a lot of research and knowledge. It is a long procedure for both you and the lender. After all your productive research, you arrive at a lender that matches your expectations and then apply for a loan, which comes with its own set of processes. After all this time and effort, immediately consulting a direct selling agent and going for a transfer can be quite tedious as it will make you go through the rigmarole of the home loan balance transfer charges and procedures all over again.

Also Read : How can you benefit from a top-up loan?

  • A balance transfer is not the only solution:

The main motive of direct selling agents is to convince you to go for a balance transfer without much consideration for your current debt and repayment situation. However, one should not treat balance transfer as the sole solution. If you are facing issues concerning interest rates from your current lender, it is always better to first opt for negotiations and come up with terms that are mutually beneficial.

  • Agents can use misleading gimmicks:

Certain agents can show you misleading information. This can be in the form of incorrect interest rates or even incentives over home loan balance transfer with top-up These may sound enticing initially; however, you may later realise that there are several hidden costs and regret your decision.

  • You may suffer from penalty and prepayment charges:

A home loan balance transfer before the first year of the tenor may not be welcomed by your lender. Certain lenders have stringent prepayment policies. You could end up spending a fortune on prepayment penalties as a result. A penalty comprises months of interest rates to be paid at one go. This can be particularly damaging to your pocket and cause you unnecessary inconvenience.

Also Read : What makes Bajaj Finserv the most preferred personal loan providers in India?

  • The new lender may offer poor customer service:

If you consult an agent and make a hasty decision, you could end up shifting to a lender that offers poor customer service. If your previous lender offered good service, you will eventually regret your decision even more.


Beware of indulging in balance transfers with agents. Rely on your own research and instinct and perform a balance transfer only if you find it absolutely necessary. You can opt for a quick and rewarding balance transfer at Bajaj Finserv.

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