Balance Transfer refers to movement of an existing loan or facility from another lender to the proposed bank. In underwriting, it requires verification of outstanding amount, repayment track, security transfer, and account closure with the old lender. It is also called takeover in many banking workflows. In MSME underwriting, it helps the bank understand the nature of the requested or existing facility, the repayment route, the security expectations and the conditions that must be tracked after sanction. For example, in a balance-transfer case, the new lender should confirm the old exposure, payout amount, closure proof and pending dues before treating the liability as shifted. This matters because product structure affects cash-flow assessment, limit sizing, pricing, documentation and monitoring frequency. The common mistake is to look only at the sanctioned amount while ignoring tenor, utilisation behaviour, repayment cycle, renewal terms and closure conditions.