Balance Transfer For home Loan
Home Loan Balance Transfer is a service that allows you to transfer your outstanding loan from one lender to another, lowering your EMI or interest rate. This facility allows you to take advantage of the market’s lower interest rates.
So, when should you utilise this service? When your current lender charges a higher interest rate than what other lenders are willing to offer you, you might consider transferring your balance.
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Balance Transfer from One Bank to Another
Banks
HDFC Home Loans Ltd
SBI Home Loans
Citi Bank Home Loans
Union Bank of India
Indian Bank Home Loans
IDFC FIRST Bank
ICICI Bank Home Loans
Axis Bank Home Loans
Bajaj Housing Finance LTD
Bank of Baroda Home Loans
The Benefits of Using a Home Loan Balance Transfer Facility
- You can use this service to transfer your outstanding loan balance from one bank to another.
- A processing fee of up to 1% of the transferred loan amount is normally charged to the new bank.
- borrowers typically use this facility to take advantage of the market’s lower interest rates.
- Before you take advantage of this option, double-check that your existing home loan arrangement with your current lender permits for a balance transfer.
The Balance Transfer Process for a Home Loan
Follow these procedures if you wish to use the home loan balance transfer service:
- Check to see whether your current home loan arrangement allows for a balance transfer.
- Choose a new bank that is willing to cut your interest rate.
- Compare the cost of transferring a balance against the estimated interest savings from transferring a loan.
- Obtain a letter of approval from your current lender, as well as paperwork detailing the outstanding loan sum.
- Send these documents to the new lender, along with all other relevant documentation.
- Once your new lender has approved the loan, they will pay off your previous one and close it.
- Your property paperwork are transferred to the new lender from the old lender.