Home Banking All You Need to Know about Home Loan Balance Transfer

All You Need to Know about Home Loan Balance Transfer

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What is Home Loan Balance Transfer

Housing loan has a very large amount and therefore, the interest rate on loans is an issue for everyone who takes home debt. Housing loan interest rates range from 9.8% to 12% and one of the most common ways to reduce interest rates is to talk to a bank with a loan to reduce or go for balance transfer in the existing home In the loan or loan terms, transfer your home loan to a low rate of bank offer.

Home loan balance transfer or refinancing

simply balance transfer is the process that allows you to benefit from the low-interest rate offered by another lender. If you have the best home loan with a borrower, you can make a home loan transaction, which means that the other borrower will charge the interest rate for the rest of the loan, in which the home loan is transferred or refunded. This unique housing loan service helps a customer avoid high-interest rate rates listed by a home loan lender and changes the interest rate structure with another lender.

Main Features of Home Loan Balance Transfer

  • The loan payable to a new lender for housing loan by the borrower is 1% commonly charged fee. In many cases, the home loan transaction application deals with a new home loan document.
  • The balance transfer can only be obtained on housing loans following a predetermined time period specified in the original loan agreement.
  • When the transfer is complete, the borrower owes the principal loan amount transferred and the liabilities applicable to the new lender rather than the original loan.

Reason to Apply For Home Loan Balance Transfer

The most important benefit of using home loan balance transfer is to save money. The difference between interest rates for the two lenders, the tenure of the loan and the best of the three major factors. If you have a significant interest in home loan interest rate, it is good to consider a switch to a new home loan lender. First of all, you need to identify with your intention of getting your first balance transfer. Then your new home loan will help you reduce your total cost. The lender may change:
Reduced EMI Burden Every Month Reduced amount of money to pay interest on a loan can also be considered a person applying for a balance transfer to gain attractive discounts and benefits by another lender.

Home Loan Balance Transfer  – Eligibility Criteria

Occasionally pay to apply for home loan transfers, a self-employed professional or self-employed businessman. Although all credit providers have different criteria, some basic concepts include:
  • You should have Indian nationality and age 21 to 60 years old.
  • However, self-employed individuals are eligible for transfers up to 65 years.
  • Your credit rating should not be applied to your credit transfer app.
  • Banks may refuse your application for refinancing if the rating is lost during the transfer period, regardless of your credit ratings during the initial loan application.
  • You should be employed by a certain number of your current employer or your company’s lender for a specified period of time. This period is usually 2 years old.
  • You have a monthly payment capability or minimum salary. Some banks may also require a minimum gross household income as a lender.

Home Loan Balance Transfer – Documents Required

Your home loan transfer is similar to the latest home loan application by the bank you are transferring to debt. As such, when transferred to another bank for your home loan, all documents presented during the initial home loan application need to be re-submitted. These documents will be refunded later, and the credit transfer facility provided by the Bank or NBFC. Documents are important when taking loans. Because they help the borrower to identify the borrower to ensure the debt borrower and loan payment capabilities. Key documents needed for home loan transfers are as follows:
  • Passport-Size Photographs
  • Fully filled the application form for transferring the financial institution.
  • The latest three-month salary slips, basic pay, housing rental and net salary, suggests that the gross salary is broken after the removal.
  • Update the salary credits within 15 days before the bank statement of the six months and salary application.
  • Identity Proof (Any): PAN Card, Passport, Driving License or ID card of a Voter or Employee Identity Card (proof of proof and signature of government employees).
  • Address proof age (Any one): 10 or 12 marks cards, PAN card or voters ID card.
  • If you are a self-employed professional or businessman, instead of points (3.) and (4), you must provide documents that prove your business presence (for businessmen) and academic qualifications (for professionals); And financial statements for both.
  • Bank statements that have been remitted for the last 12 months in the home loan EMIs account.
  • The current housing loan creditor is a complete set of the declaration of debt and documents relating to existing property.

Top Banks Offering Home Loan Balance Transfer

SBI – State Bank of India offers special benefits and special benefits like SBI housing loan transfer home, one of the low-interest rates, daily reduction balance, processing charges, hidden expenses or administrative charges and zeros pre-payment payments. SBI is comfortable with 13,700 branches across the country.

ICICI Bank has received you from other banks and non-banking financial companies (NBFCs) to allow you to save money on your current home loan transaction. The bank provides an additional top-up loan of up to 100% of the original home loan. Other features, including attractive interest rates and simplified documents, make ICICI home loan transfers valuable.
HDFC Bank 
HDFC Bank is one of the attractive ways to reduce your EMI payments, the transfer of home loan and the housing loan provider in India. In addition, you have a home loan of above Rs. 35 lakhs of your current debt. Additional benefits are low-interest rates, repayment options by core banking solutions as well as customized refund options for your specific conditions when compared to actual home loans.

Home loan balance transfer interest rates for various banks:

Bank Name Floating ROIs Processing Fee Loan Amount (Rs) Tenure
SBI 8.50% onwards Rs 2,000 – Rs 10,000 5 lakh-10Crore 1-30 Years
India Bulls 8.65% onwards 0.5% – 1% of loan amount (min. Rs 7,500) 2Lakh-3 Crore 1-30 Years
PNB 8.90 % onwards Rs.5,000 to 0.25% 5Lakh-5 Crore 1-30 Years
ICICI Bank 8.65% onwards 0.5% – 1% (Max. Rs. 2000) 5 lakh-10 Crore 3 -30 Years
HDFC Bank 8.65% onwards Up to 0.5% 5 lakh-10 Crore 1-30 Years
Axis Bank  9.15% onwards Rs.10,000 5 lakh-10 Crore 1-30 Years
DBS Bank 9.30% onwards 0.25% to 1.50% 50 lakh-5 Crore 1 – 25 Years
Kotak Mahindra 9.10% Rs.0 onwards 5 lakh-5 Crore 15 – 20 Years
BOI 8.65% onwards Rs.0 Up to 5 Crore 30 Years
IDBI Bank 9.30% onwards Rs.0 5 lakh-10 Crore 25 Years


* The above facts and statistics are subject to advisory and periodic change. 

Guidelines for Home Loan Balance Transfer:

Due to the interest rates offered by different banks and lenders to existing and new customers, many consumers are worried about their high home loan interest rates. If you take into consideration a switch between banks, you can transfer your home loan to the bank at lower rates compared to the existing one. Here is a guide to learn about home loan balance transfers
Step 1: Analyze Price Benefits Decide the possibility of transferring your home loan by analyzing the present situation.
Here are some guidelines to help you with analysis:
On home loans with fixed interest rates, the lender will charge the borrower with a fine before transferring a debt or loan. However, higher rates and interest rates float on home loans, usually, penalties are not imposed. Therefore, your interest will be transferred to a lower interest rate. Transfer to long-term loans is profitable for a longer period of time and more likely to represent EMIs. Also, keep an eye on hidden costs in the process.
Step 2: Get the NOC from the existing bank Getting a No Registration Certificate (NOC) from your current housing recipient is a key step in the home loan transfers process. The other document required to complete this step of the balance transfer system is a foreclosure letter along with the bank, along with a full list of documents with your payment history. In some cases, your current bank can now try to maintain your business by offering a lower interest rate than what you pay. Make sure you have fully analyzed such offer and other offers before you can settle on a specific offer.
Step 3: Application to a new bank Now you need to have all the documents you need to transfer the existing home loan to another bank of your choice. You also need to get a No Registration Certificate from your Home Society or Builder, as a proof of ownership of the bank, including all other documents. Then, the bank will check your ability to pay monthly installments. While applying for a balance transfer, you can make a decision on balancing your home loan, reducing your tenure or changing your home loan EMIs.
Step 4: Credit Approval At this stage, the Bank will evaluate your application and determine your eligibility for home loan transfers. Extensive background checks and history estimates are made before they give you credit approval. These certificates include reviewing your home loan, checking your credit history, checking ownership’s authenticity and document evaluation. Once the issues related to credit approval are resolved, the home loan provider will provide you with documentation about key information such as new loan interest rate, tenure, and other features. It’s time to decide when you have to go through balance transfer to your current debtor after completing this step.
Step 5: Selected Loaner Documentation At this point, if you decide to complete the home loan transaction process, you have to complete the documentation process with the loan provider you choose. Some additional papers are needed to complete the entire transfer process. Here, you have transferred your home loan to a lower interest rate and good interest.

Home Loan Balance Transfer FAQ’s:

Q: What is a Home Loan Balance Transfer and Top-up?

B. Where the customer is to take a higher loan from the new lender, than the best of the current home loan, it is generally referred to as a home loan balance transfer and top up. In such cases, the new lender will pay the current lender the current lender best and pay directly to the borrower in the upper part of the loan.

Q: What is a Home Loan Balance Transfer?

B. Home loan balance transfer is a choice to move another loan to a person running a home loan. Such balance transfers have occurred, such as banks to compete to grow their home loan book and provide good ways to make customers pay for their home loans. The customer does not need to pay a penalty for the current lender, the transfer cost is cheaper.
There are many reasons to encourage customers to transfer home loan. These include:
A. They realize that they are paying the interest rate higher than the prices in the market. Hence the purpose of such a transfer is to reduce a good deal of contracts and interest costs.
B. If they are dissatisfied with their current lender’s service standards.
C. To switch from floating rate to a fixed rate interest.
d. In order to select home loan overdraft facility, the current lender does not offer such a product option.

When will the balance of home balance transmit a good idea?

B. The main reason for transferring another home loan from one lender to another is from the low-interest rate provided by the new lender.

Q. Is there a limit to the amount I can transfer?

B. Yes. Maximum balance transfer amount is equivalent to the best amount of home loans.

Q. When should I not consider transferring my home loan?

B. If you apply in your situation in the following situation, you should not consider changing your home loan:
You have repaid the loan for a long time. Your current bank will have to pay the payment you want to go out of the property in the near future.

Will my current credit score affect my chances of successfully completing transfer?

B. Your credit score has been substantially reduced since you applied for an early home loan, which can affect the process. The reform transition process acts as a loan for a new home loan, and your credit score and history plays a key role in determining your eligibility for home loan transfer.

Q. Will my refinance be affected by a payment penalty?

B. Many banks today have a permanent penalty in the first place. But if your bank has it, you can ask your new loan bank to take into account. This will change from bank to bank.

How long does it take to transfer my home loan from another bank?

B. By repaying a home loan, a home loan is repaid by the bank and the loan is transferred. Hence, it may take 15-20 days for housing loans to transfer to the new bank.

What is the top loan?

B. For example, the value of your home’s property may be more economical for the rebuilding of your home if you go too far from the original price when you take a home loan. In this situation, you can add your loan. This is called debt.

Q. Can I lift up my loan with the transfer?

B. Yes, depending on your qualification, loan issuer offers the best option on a home loan to transfer the new bank to you, but processing and legal charges may be applicable.

How is the processing fee paid on home loan transfer?

B. Processing fees will be 0.5% to 1% of the loan amount on home transfer.

Q: Will any bank get any interest in EMI through housing loan transfers?

B. The exact deduction in EMI depends on:
What is the best major amount your interest rate charged by your bank is currently the interest rate offered by the new bank

Q: What can the top up portion of the loan be used for?

B.The borrower can use this top for any personal or business purpose eg. Repayment of housing, medical or education costs, other high-cost liabilities or credit card dues, business expansion etc.

Q. What will your current EMI Q. Have any steps to take a home loan?

B. Simple steps below will participate in your loan transfer:
Check the current rate to calculate interest savings Calculate the cost based on different fees and charges. Choose a new bank and decide if a top loan is required Collect the documents in your existing bank and collect the foreclosure, as well as pay the grievance copy of the property documents applicable to the loan along with the new bank deal with the new bank, by paying a check or demand draft Get, and then Deposit the same asset papers to the new bank
Q.Old bank?
Q.Care must be taken when transferring home loan?
Check and analyze the new lender’s interest rate record and make sure that the lowest interest rate offered by the new lender is real.
You can compare offers through various banks on our website and ask our team of experts for suggestions and explanations. To ensure the quality of service of the new lender according to your expectations.
Lower rates should not come at the cost of the service below.
Check the benchmark rate as a base rate and prime lending rate. Loans with base rate benchmarks are more transparent and credit rate benchmarked loans are preferred.
 Spread variable or fixed is an important question. The two portions of the interest rate applicable on floating rate loans have a benchmark rate along the outflow.
The benchmark rate is expected to change over time, but excluding the default, the spread is expected to be stable.
You must avoid liabilities with variable spreads and choose floating rate loans that have a different interest rate with a change in the benchmark rate.
Processing Fees, Documentation Charges and Stamp Duty Assessment of Transaction Costs.
Issue notice to the bank before applying for another. Check carefully your loan agreement and make sure that you are notified by your current bank.
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