Home Loan Balance Transfer also popularly known as Refinancing or Simply Balance Transfer is one of the best ways to reduce or lower your interest rates or EMI, in this way your outstanding balance loan will be transferred or shifted to other institutes that offer lower rates over the loans. The process of refinancing helps the individual to get rid of the high applicable interest rates, just by migrating from one loan lender to the other lender who offers lower interest rates than the former lender. It is a matter of concern to shift your home loam to the others because the home loan is of a huge amount and the interest applicable on it make it even harder to clear the loan, usually 6.80 to 12% is the interest rates for the home loan. The best and easy way is to transfer your loan is by speaking to you bank and request them to transfer your home loan to the other bank that offers lower interest rates.
What are the features of Home Loan Balance Transfer?
- It transfers the outstanding balance of the existing loan to the other lender.
- Borrower must pay off 1% of fee while changing the lender.
- Home loan balance transfer is treated as a new home loan application in many cases.
- Once the balance transfer is completed, now the borrower has the principal amount and the charges applied by the new lender instead of old one.
What are the reasons to apply for Home loan Balance Transfer?
- To save money
- To lower EMI
- To reduce the loan amount that must be cleared.
- To minimize loan interest
- To get discounts and other benefits offered by another lender.
What is the eligibility to get Home Loan Balance Transfer?
- Any salaried, Self-employed individual is eligible.
- The individual should be of Indian nationality.
- Age should be between 21 to 60 years for salaried persons.
- For Self-employed age relaxation is up to 65 years
- Credit rating should not fall during loan transfer.
- Individual should have monthly repaying capacity or minimum salary to pay off the loan.
What are documents required?
- Passport Sized photographs
- Submit the Loan application filled that provided by the financial institution.
- Three months’ salary slips (Latest) which should provide the details of Basic Pay, House Rent, After deduction net salary, etc.
- Bank statements of salary reflecting credits which is updated within 15 days prior to loan application.
- Government ID Proofs like PAN/adhaar/Voter ID, etc.
- Address proof
- Age proof certificate (10th or 12th Mark Sheet)
List of Banks that offer home loan balance transfer:
- State Bank of India
- ICICI Bank
- HDFC Bank
- Kotak Bank
- Bank of Baroda