A balance transfer is an effective mechanism to lower your home loan interest rate by transferring the entire unpaid principal amount to another bank / NBFC. It can be useful in case of top up requirement as well. The financial institution that had originally extended the loan to you gets the unpaid principal back and you start paying EMIs at a reduced interest rate to the new financial institution.
If you need to transfer your home loan balance then, do not fret. The process is quite easy, convenient and hassle-free. However, there are certain things you should keep in mind before you opt for a balance transfer.
Why Should You transfer Your home loan?
Obtaining a home loan from a reliable lender is very important. You can look for various options for balance transfer available in the market or simply contact Finserv MARKETS to find out more about home loan balance transfer options. Once you have all the information you need, you can choose to transfer your home loan in order to get lower equated monthly installments (EMIs) at a reduced rate of interest.
Home Loan Transfer Procedure
Follow the below simple steps, in case you wish to transfer your home loan balance:
- First, you would have to provide the lender with a letter stating that you wish to transfer the unpaid loan/principal amount.
- Once the lender receives your request, the lender will then provide you with a No Objection Certificate (NOC) or consent letter.
- The lender will also give you a statement of the outstanding balance.
- Once you’ve received the NOC and statement of the outstanding balance, you would have to submit these documents to the new lender / financial institution.
- The new lender would then pay off the outstanding balance to the old lender to close your loan.
- Once this is completed, the old lender then hands over all the property-related documents to the new lender. If there are any post-dated checks that you have given to the old lender, they will be cancelled as well.
Remember, whenever you choose to transfer the loan to a new lender, you would have to go through the same process that you went through when you applied for a home loan. The new lender will only approve of your balance transfer once they have verified all the property-related documents and check your credit rating as well to ensure everything is satisfactory. You may negotiate the rate of interest with the new lender to further lower the rate.
Features of Bajaj Finserv Home Loan Transfer at Finserv MARKETS
Here are a few beneficial features of Bajaj Finserv home loan balance transfer: –
- Lower home loan rate of interest
- Affordable with No hidden fees/charges
- Special rate of interest for women applicants
- Easy customized repayment options to fit your financial situations
- Easy online access to take care of your account
- Prepayment options available
- Home service for your convenience
- Loan Top Up Facility
Before you go in for a balance transfer of your home loan, it is very important to check for any penalties applied against prepayment to your existing lender. Some lenders may charge prepayment penalties between 2% and 5% of the outstanding balance. Another thing to keep in mind is that the new lender may also charge processing fees, which may be between 0.5% and 1% of the borrowed amount as well. So, it is always advisable to negotiate with the new lender to try and waive off any processing fees in order to make the balance transfer more reasonable and cost-effective for you.
There are many other reasons for shifting your Home Loan to Finserv MARKETS. Some of them include service issues with your existing lender or unwillingness to re-negotiate terms, etcetera. However, before you make a decision to transfer your balance, make sure you take a look at all these aspects in order to make an informed decision.
You can now easily avail a Bajaj Finserv Home Loan Balance Transfer facility on Finserv MARKETS and take advantage of a plethora of benefits like fast application processing, quick dispersal and many more! So why wait? Apply for a Home Loan Balance Transfer with us, today!
You can also read on is your home loan transfer eligible for pmay subsidy only at Finserv MARKETS.
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