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Home Loan Balance Transfer Overview

What is Home Loan Balance Transfer?

Home Loan Balance Transfer lets you transfer your outstanding Housing finance Delhi from other loan institutions to another bank at a Low Interest Home Loan in Delhi, 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 Low Interest Home Loan offered by other banks on an existing home loan. A balance transfer provides the borrower the benefit of lowest interest rate home loan in Delhi.

When you are switching to a new lender, A borrower can renegotiate the home loan terms and ask for a longer term. Doing this will reduce the monthly EMI. Best Home Loan balance transfer also allows you to borrow more money. If a borrower has a good repayment track record on an existing home loan, a new lender will not only offer the borrower a Low Interest Home Loan, but may also offer a higher mortgage 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

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Home Loan Balance Transfer Comparison Chart

LenderInterest RateProcessing FeeEMI / LakhLoan Tenure
8.25 %Upto 0.35% of Loan Amount (Min Rs 2500 Max 10000)77630 Years Max
8.35 %0.25% to 1% of Loan Amount (Min 5000- Max10000)Rs 75830 Years Max
8.35 %Upto 0.50% of loan amount +GST (Min 3000- Max 10000)Rs76930 Years Max
8.40 %Upto 0.25% of Loan Amount (Min 3000 - Max 10000 )Rs 77630 Years Max
8.40 %0.25% of Loan Amount (Min-1500 Max- .2500)Rs 77630 Years Max
8.40 % 0.25% of loan amount (Min 2500 Max 10000)Rs 76930 Years Max
8.40 %0.50% of Loan Amount (Min 2500 Max 5000)Rs 76530 Years Max
8.40 %Upto 0.50% of Loan Amount (Min-3500 Max 10,000)Rs 76230 Years Max
8.50 %0.10% to 0.25% of Loan Amount (Min 3000 Max 10000))80530 Years Max
8.50 %0.25% to 1% of Loan Amount (Min 5000- Max10000)Rs 79430 yr
8.50 %Upto 0.25% of Loan Amount (Min 2500 - Max 10,000)Rs 80530 Years Max
8.50 %0.10% to 0.25% of Loan Amount(Min2500 Max 10000)78730 yr
8.50 %Upto 0.50% of Loan Amount (Min 2500 Max 10000)Rs 76230 Years Max
8.50 %up to 0.50%of loan amount +GST (Min 2500 Max 10000)Rs77630 Years Max
8.50 %Up to .25% of Loan amount(Min Rs 5000 Max Rs 10000)Rs 78030 Years Max
8.55 %Upto 0.25% of Loan Amount (Min 3000 - Max 10000)Rs79430 Years Max
8.70 %0.5% of Loan Amount (Min 1100 Max 10000)Rs 78330 Years Max
8.75 %Up to 0.25% of Loan Amount (Min- 25,000 Max -5Lakh))78730 year
8.95 %0.10%-0.50% of Loan Amount (Max Rs 10000)Rs 83430 Years Max
8.95 %0.25% of Loan Amount (Min 2500 to Max 10000)82130

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.

RELATED BLOGS (50)

News Update on Home Loan Balance Transfer

Home Loan Top Up: Eligibility, key benefits, interest rate – All you need to know

Admin 2022-08-30 12:19:20

A disciplined borrower can use multiple financial products available in the market to make their financial journey smoother. A top-up home loan is one of the easiest ways to borrow money without too much documentation and verification. It also offers more flexibility and better features than other borrowing instruments. One of the main eligibility requirements for a top-up home loan is that you need to be an existing home loan borrower.

A top-up home loan has many benefits. Let’s check out how a top-up home loan works and its key benefits.

Is investment in luxury real estate worth the cost?

Admin 2022-11-15 12:43:04

Luxury has become the most sought after need of every buyer today. Whether it is in the form of residence, services, facilities or any other segment. Owning luxury is a state of comfort and pleasure and a matter of prestige in our society. Real estate by far is the most preferred possession when it comes to status definition; and if it is luxury real estate, the living experience enhances while also adding to the buyer’s value. India has witnessed a massive response in the sale of real estate projects over the past few years, indicating buyers’ incline towards facilities and amenities that come along with the investment in such properties.

Senior Citizen Fixed Deposit Interest Rate is Rising: Check Latest Bank FD Rate Hike Details

Admin 2022-11-26 10:54:29

Latest Bank Fixed Deposit Interest rate for Senior Citizens: Banks have been raising Fixed Deposit rates for senior citizens and other depositors in the last few months. This week, DBS Bank and Union Bank of India raised FD rates.

The Union Bank of India has increased FD rates with effect from November 25. The public sector bank is now offering up to 7.3% interest to regular depositors for FDs of 800 days and 3 years respectively. Senior Citizens can get 7.8% interest for these tenors as the bank provides 0.5% extra interest to them.

 

DBS Bank has raised the FD rate for senior citizens on deposits of 600 days by 0.75%. DBS bank is now offering 7.75% interest to senior citizens on deposits of 600 days. On FDs of 3 to 4 years, 4 to 5 years and 5 years & above, the DBS bank is offering 7% interest to senior citizens. These rates on DBS bank FDs are effective from November 18, 2022.

How can young investors make money from real estate?

Admin 2022-11-26 10:55:59

Investing in real estate at a very young age is a smart way to build wealth, but the entry barriers are often prohibitively high for anyone in their early to mid-20s. For young people, investing in real estate can seem intimidating, if not impossible. Many younger people mistakenly believe that a successful real estate investor must be “old,” especially as the housing market continues to discourage them. As a result, they decide to postpone their interest in real estate investing until later in life. Time, on the other hand, is the most powerful and wealthy asset that young people have, and with the appropriate investment strategy, you can start to make returns.

Traditional property ownership or making an investment without owning any property both are options for real estate investing. Here are the best ways for young people to get started in the real estate investment market and build long-term wealth.

RBI hikes repo rate again – What should home loan borrowers do now?

Admin 2023-02-10 14:09:53

Global economic volatility and uncertainty as well as surging inflation have prompted the RBI to make another policy rate hike by 25 bps, taking the repo rate to 6.5%. When the repo rate is increased by the central bank, the cost of borrowing for banks also goes up. As a result, they may pass on the higher cost to their customers in the form of higher interest rates on home loans and other types of loans.

This means that home loan borrowers may have to pay a higher rate of interest on their loans, which can increase their monthly repayments. The higher repayments can put a strain on their finances, particularly if they have limited income or multiple loans.

Salaried? Know how using Diwali Bonus for Home Loan Prepayment helps Borrowers

Admin 2023-11-09 17:27:16

Diwali, the festival of lights, is a time of celebration and togetherness, but it also presents a unique financial opportunity in the form of Diwali bonuses. Rather than splurging on fleeting luxuries, consider channelling your Diwali bonus toward a more substantial investment – prepaying your home loan. We will explore the advantages of utilizing your Diwali bonus for home loan prepayment, along with a comprehensive explanation of tax deduction sections, interest rates, and how your interest rate percentage plays a pivotal role in this financial decision.

RBI holds key policy rates: How it will impact existing and new home loan borrowers

Admin 2023-12-19 15:17:46

The Reserve Bank of India’s Monetary Policy Committee (MPC) on Friday chose to maintain the repo rate at 6.5 per cent, affirming its dedication to stability while gradually scaling back accommodation to align inflation with the 4 per cent target. This stability is likely to bolster sentiments in the real estate sector, which is already experiencing positive trends in key markets across the country. Furthermore, consistent lending rates have the potential to encourage investments, fostering economic growth.

The RBI decision holds significant implications, particularly for both the existing and new home loan borrowers across the country. This acts as a crucial determinant in shaping lending rates, directly influencing the borrowing landscape for individuals seeking home loans. Here is how it will impact home loan borrowers.

For Existing Home Loan Borrowers

The unchanged repo rate brings a sense of stability for individuals with existing home loans. This decision implies that the interest rates on their current loans are unlikely to witness immediate fluctuations. Borrowers can breathe a sigh of relief as the Equated Monthly Instalments (EMIs) they have been accustomed to remain unchanged, at least in the short term. This consistency allows for better financial planning and budgeting, sparing borrowers from the anxiety of sudden rate hikes that might strain their finances.

However, it’s essential to note that while the repo rate remains steady, existing borrowers might not immediately benefit from potential rate reductions. Any future changes in lending rates depend not only on the repo rate but also on the policies and strategies adopted by individual banks or lending institutions. Therefore, existing borrowers should keep a keen eye on the policies of their respective lenders to take advantage of any favourable adjustments in interest rates.

For New Home Loan Borrowers

The decision to maintain the repo rate also holds implications for individuals planning to apply for new home loans. The unchanged rate presents a window of stability. Prospective borrowers can lock in their loans at the prevailing rates, secure in the knowledge that these rates won’t immediately increase. This stability allows them to plan their finances more confidently and proceed with their home purchase decisions without the immediate threat of escalating borrowing costs.

Moreover, with the repo rate being maintained at a consistent level, it offers new borrowers the opportunity to explore various loan products and lending institutions to secure the best possible deal. This stable borrowing landscape empowers new borrowers to conduct thorough research, compare rates, and negotiate terms to suit their financial capabilities and long-term plans effectively.

Additionally, lending institutions are also likely to compete by offering attractive schemes or incentives to attract new borrowers especially those with higher credit scores and stable income. This could translate into a variety of offerings such as lower processing fees, longer tenure options, or other favourable terms, providing new borrowers with an array of choices to explore.

Adhil Shetty, CEO, Bankbazaar.com, says, “Repo rates wield significant influence over the interest rates set by banks for various loans, including home loans. Changes in the repo rate directly impact these loan interest rates. With the current repo rate holding steady at 6.5 per cent, existing borrowers can rest assured that their Equated Monthly Instalments (EMIs) won’t be immediately affected. Prospective homebuyers may find relief in the stable repo rate, allowing them to plan their moves without concerning about imminent rate hikes.”

The steady repo rate ensures short-term stability and predictability in EMIs for the existing home loan borrowers whereas new borrowers will have an opportunity to secure loans at prevailing rates.

However, potential future changes in lending rates cannot be ruled out owing to various market factors and regulatory measures. As a borrower, you must keep your financial health stable and maintain a healthy credit score while paying your debts timely.

 

Consequences of Home Loan EMI Delays: Impact and Solutions

Admin 2024-01-09 20:48:20

Are you in the process of buying a house or currently repaying a home loan? If so, you must be aware of the long-term commitment involved in servicing debts spanning 10 to 20 years. For many, homeownership is a dream, often made achievable through home loans. This instrument paves the way to owning a home, providing accessibility and affordability. However, what starts as a dream could potentially turn into a nightmare if home loan repayments are delayed.

Home loans serve as a practical and cost-effective method for financing residential property purchases, offering a diverse range of loan products tailored to various needs in the market. Choosing the most suitable option is pivotal.

Though securing a home loan might seem straightforward, ensuring punctual repayments requires meticulous financial planning. The repercussions of delayed EMI repayments can significantly impact borrowers in numerous ways. Here’s an overview of the effects and potential solutions to address delays in home loan repayments.

Minor and Major Defaults

The consequence of delaying EMIs isn’t merely financial inconvenience; it carries legal implications as well. A minor default occurs after missing three successive EMI payments, prompting lenders to issue reminders. Should the delay persist beyond three months, it escalates to a major default. This designation grants lenders the authority, under the SARFAESI Act of 2002, to initiate the auctioning of the property to recoup outstanding dues.

Penalty Charges

Beyond the legal implications, delaying EMI payments incurs financial penalties. Lenders typically impose penalties per month on the outstanding EMI amount, subject to a minimum specified sum. This additional burden compounds the financial strain on borrowers.

Credit Score Impact

Frequent delays or defaults lead to a significant decline in the credit score, affecting the borrower’s creditworthiness. A poor credit score not only affects the ability to secure future loans but can also lead to higher interest rates on loans due to increased perceived risk. For even a few days delay may lead to an impact on your credit score and defaults leave a negative impress on your overall financial health which takes time to rebuild.

Preventing EMI Delays

* Communicate with Lenders

It is essential to keep the communication going on. Should financial constraints arise, informing the lender early and discussing potential solutions like loan restructuring or grace periods can prevent escalation to default status.

Credit Score Impact

Frequent delays or defaults lead to a significant decline in the credit score, affecting the borrower’s creditworthiness. A poor credit score not only affects the ability to secure future loans but can also lead to higher interest rates on loans due to increased perceived risk. For even a few days delay may lead to an impact on your credit score and defaults leave a negative impress on your overall financial health which takes time to rebuild.

Preventing EMI Delays

* Communicate with Lenders

It is essential to keep the communication going on. Should financial constraints arise, informing the lender early and discussing potential solutions like loan restructuring or grace periods can prevent escalation to default status.

Credit Score Impact

Frequent delays or defaults lead to a significant decline in the credit score, affecting the borrower’s creditworthiness. A poor credit score not only affects the ability to secure future loans but can also lead to higher interest rates on loans due to increased perceived risk. For even a few days delay may lead to an impact on your credit score and defaults leave a negative impress on your overall financial health which takes time to rebuild.

Preventing EMI Delays

* Communicate with Lenders

It is essential to keep the communication going on. Should financial constraints arise, informing the lender early and discussing potential solutions like loan restructuring or grace periods can prevent escalation to default status.

* Emergency Funds

Building emergency funds can serve as a safety net during unforeseen circumstances, ensuring liquidity for timely EMI payments. Having an emergency funds of 6-12 months of your monthly income can help you overcome temporary financial stress. It will not immediately affect your loan repayments and you can work on other alternatives to repay your loan.

* Make Use of Savings

For temporary liquidity issues, borrowing from acquaintances or utilising FDs and other savings can help. Additionally, liquidating low-interest investments or considering withdrawals from long-term funds like PPF can aid in timely repayments. In more difficult financial situations where repayment seems unfeasible, considering downsizing homes or liquidating assets could be a viable option to avoid defaults.

Understanding the consequences of delaying home loan EMIs is crucial for borrowers. It’s not just about financial penalties; it’s about protecting your creditworthiness, financial stability, and future borrowing capacity. Proactive steps involve creating emergency funds, evaluating loan tenure, opting for moratorium periods, and maintaining communication with lenders to explore solutions like restructuring may provide some relief. However, planning and prudent borrowing based on repayment capacity are crucial to prevent EMI defaults.

 

 
 

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