Balance transfer is a financial facility that allows you to move an existing loan or credit card outstanding from one lender to another, usually to benefit from a lower interest rate, reduced EMI, or better repayment terms. It is commonly used for home loans, personal loans, and credit cards to reduce overall interest burden and improve cash flow. The new lender pays off the remaining balance to the old lender, and you continue repayment with the new lender under revised terms. While it can save money, factors like processing fees, foreclosure charges, and eligibility criteria should be evaluated, and such transactions are governed under lending norms aligned with the Reserve Bank of India.