Bangalore: Bank Muscat has launched 'loan transfer plan', through which it is possible to reduce the interest cost on an existing loan and thereby reduce the monthly cash outflow, an official press release said.

Salaried employees, self-employed professionals like doctors, chartered accountants, engineers, architects, consultants, or businessmen, regularly repaying earlier loan taken from any bank or non-banking financial companies (NBFC), are eligible for this scheme.

The earlier loan can be transferred to Bank Muscat from an existing lender, at a considerably lower rate of interest, resulting in substantial savings. The quantum of savings will depend on when and at what rate of interest the earlier loan was taken, the release said.

There is also the option of transferring current loan outstanding balance to Bank Muscat or taking a top-up loan equal to the amount that is already paid back to the previous bank during the past one or two years.

Higher amounts can be applied for loan and depending on the eligibility Bank Muscat lends up to Rs 10 lakh. These personal loans also do not require any guarantor or security.

According to Shome Sengupta, vice-president and head of retail bank the loan transfer plan is doing well.

The process of getting the loan does not need submission of any income papers, but a proof that reveals there is a loan and was being repaid.

Bank Muscat was incorporated in the Sultanate of Oman in the year 1983. Bangalore branch is the first overseas branch and was established in September 1998, the release added.