Home Loan Balance Transfer

What is Home Loan Balance Transfer?

Home Loan Balance Transfer lets you transfer your outstanding loan from other loan institutions to another bank at a lower interest rate, which helps in reducing your EMIs. Home loan balance transfer or refinancing or simple balance transfer is the process by which you can take advantage of lower interest rates offered by other banks on an existing loan. A balance transfer provides the borrower the benefit of lower interest rates.

 

When you are switching to a new lender, a borrower can renegotiate the loan terms and ask for a longer term. Doing this will reduce the monthly EMI. Home Loan balance transfer also allows you to borrow more money. If a borrower has a good repayment track record on an existing loan, a new lender will not only offer the borrower a lower interest rate, but may also offer a higher loan amount as part of the balance transfer process.

Features of Home Loan Balance Transfer
  • You can transfer the existing home loan balance to another bank or loan institution.
  • Usually the balance transfer fee loan is equal to 3540/- to 10000/- Etc which the customer pays to the new bank for the home loan.
  • In most cases, a home loan balance transfer application is the same as a new home loan application.
  • Balance transfer on an existing home loan can be availed after a pre-determined time as stipulated in the original loan agreement.
Process For Applying Home Loan Balance Transfer

You can get your home loan refinanced by following steps which are given below:

- Get all the necessary documents which are required to transfer your loan from your current lender/Bank.

- It is mandatory to receive a consenting letter from your existing bank with the remaining outstanding loan amount.

- Give these documents to the new bank from which you are interested to transfer the housing loan amount.

- Your new lender will pay the balance which is left, to your old lender.

- Thereafter, your old loan account will be closed, which means that all outstanding loan payments will have to be paid to the new bank.

- All the documents related to the property will now be hand over to the new bank, officially after completing the process of transferring your home loan.

 

How to Transfer Home Loan from One Bank to Another?

Step 1: Open the website of the loan concerned bank.

Step 2: Read all the terms and conditions carefully along with the rate of interest and required processing fee.

Step 3: If the scheme makes you fully satisfied, then apply for the balance transfer from the bank.

Step 4: You have to fill the other fields that are required, it is including your name, type of the property, tenure of the existing loan and the name of your bank.

Step 5: Once all the required information is complete, you will be able to view your loan offer.

Step 6: Pay all the fees that is required and upload your documents.

Step 7: After Complete your loan application process, wait for your loan approval.

Home Loan Transfer Eligibility Criteria

Any salaried, self-employed professional or self-employed businessman can apply for Home Loan Balance Transfer. Although all lenders have different eligibility criteria.

 

  • Age: 23 to 65 years
  • Type of employment: Salaried or self-employed
  • Nationality: Resident Indians and NRIs.

EMI Calculator & Schedule

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Loan EMI

24,959

Total Interest Payable

34,90,279

Total Payment
(Principal + Interest)

59,90,279

Loan Eligibility Calculator
%
Comparison Chart
LenderInterest RateProcessing FeeEMI / LakhLoan Tenure
7.05 %Upto 0.53 (Min Rs 8900 Max 13350)Rs 66930 Years Max
7.49 %Upto 1.00 (Min Rs 5000 Max Rs 10000)Rs 80520 Years Max
7.50 %Min Rs 10000Rs 69930 Years Max
7.70 %upto 0.30Rs 81820 Years Max
7.75 %Upto 0.15 (Min Rs 10000)Rs 71630 Years Max
7.75 %Upto 0.35 (Min Rs 2500 Max 15000)Rs 71630 Years Max
7.80 %upto 0.25Rs 72030 Years Max
7.90 %Upto 0.23 (Min Rs 20381)Rs 83020 Years Max
7.95 %Min Rs 10030Rs 73030 Years Max
7.99 %Min Rs 10000Rs 83620 Years Max
8.00 %Min Rs 2500Rs 73430 Years Max
8.05 %NILRs 73730 Years Max
8.05 %Min Rs 5000Rs 77525 Years Max
8.10 %Min Rs 3000Rs 74130 Years Max
8.10 %Min Rs 3000Rs 74130 Years Max
8.10 %Min Rs 10000Rs 74130 Years Max
8.40 %Min Rs 10000Rs 76230 Years Max
8.40 %Upto 0.50 (Max Rs 15000)Rs 76230 Years Max
8.85 %Upto 0.50 (Min Rs 50000)Rs 79430 Years Max
8.95 %Upto 1.50 (Max Rs 10000)Rs 83625 Years Max

Related Frequently Asked Questions

The procedure for transferring an auto loan is quite simple and may vary from lender to lender.

Yes, your existing auto loan balance can be transferred to a new lender. This process is known as balance transfer.

Step 1: Open the website of the loan concerned bank.

Step 2: Read and check all the terms and conditions along with the interest rate and processing fee.

Step 3: If you are completely satisfied with the scheme, then apply for balance transfer.

Step 4: You need to fill in other required fields including your name, property type, tenure of the existing loan and bank name.

Step 5: Once all the required information is complete, you will be able to view your loan offer.

Step 6: Pay all the required fees and upload your documents.

Step 7: Complete your application process and wait for your loan approval.

Any salaried, self-employed professional or self-employed businessman can apply for Home Loan Balance Transfer. Although all lenders have different eligibility criteria.

 

- Age: 23 to 65 years

- Type of employment: Salaried or self-employed

- Nationality: Resident Indians and NRIs.

If you are paying an interest rate on your personal loan that is much higher than the interest rate available in the market and the difference is more than 0.5% to 1%, then you should consider for the option of transferring your loan to a new bank. So that you can easily repay your loan at a low interest rate.

Any of the borrower who has an existing home loan with any other bank and HFCs in which he should have a regular payment track record of 12 months can avail a balance transfer home loan easily.

The loan transfer is a beneficial option for the existing borrowers, who is eligible for availing a home loan at lowest rate of interest due to their previous credit histories & profile. It is advisable when your outstanding loan amount is higher.

A process of a Personal Loan balance transfer is wherein a customer transfers their total outstanding balance from one bank to the another bank. It usually happens when the new bank extends a lower rate of interest on the outstanding loan amount.

Processing Fees is Up to 0.50% of the loan amount or ₹3,000 whichever is higher, plus applicable taxes. Minimum Retention Amount: 50% of applicable fees or ₹3,000 + applicable taxes whichever is higher.

There can be many reason to transfer you loan to the another bank like,

. lower interest loan rate.

. For better customer services.

. Affordable EMI without any hidden charges.

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