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.
- 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.
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.
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.