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Renovating your home? A home loan balance transfer can make sense for you

By Finserv MARKETS - Jul 31,2019
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Tips for home renovation

Renovating your home can be a necessity to meet the requirements of your family or a luxury to add to the functionality of your home- for example creating an eco-friendlier or energy-efficient environment. To cover expenses to build these functionalities, your short-term finances may prove inadequate. A home loan balance transfer (HLBT) enables you to access lower EMIs through the process of shifting your outstanding borrowing from other financial institutions to one that offers lower interest rates and longer repayment tenure. Further, it creates provisions for a top-up loan to finance your home renovation or remodelling at a nominal interest and longer tenure. You can even utilize this amount for personal purposes such as purchasing a car or managing expenses for your next vacation. The interest rates on home loan balance transfer are ideally lower than the ones quoted for car loans, personal loans, and loans against securities.

Finserv MARKETS offers home loan balance transfer with zero part-payment or foreclosure charges and minimal documentation requirements. The plan allows access to a property dossier for legal and financial information relevant to your real estate ownership and customized solutions to safeguard your family from repaying the loan amount. With an home loan balance transfer facility, you can top-up your existing borrowing without the hassle of extra documentation.

Here are some of the benefits of the Home Loan Balance Transfer facility-

  1. Top-up loans

Purchasing your home can bring unforeseen and unplanned expenditures. A top-up loan is usually availed to furnish or revamp your home. Finserv MARKETS offers an affordable top-up at lower interest rates with a hassle-free application procedure. You do not need to worry about submitting more collateral as this is an add-on facility available within your existing maximum loan limit. You are eligible to apply for this loan after one year of transferring your home loan balance.

Using your top-up loan for home renovation can provide significant tax benefits as well. You are eligible for benefits under Section 24 of the Income Tax Act for an amount up to 1.5 lakh (inclusive of the claim for your loan payments). Further, you can access deductions up to 1 lakh on the principal amount (including deductions on the original loan amount).

You can use your top-up loan amount to consolidate existing debt as well. For example, if you have an ongoing home loan and personal loan, you can use the top-up facility to consolidate the two loans. The benefit lies in the lower interest rates for top-up loans as opposed to the other offerings.

  1. Flexi Repayment Options

A flexible repayment facility allows you to choose a longer tenure for completing your payments. With Finserv MARKETS, you can now opt for a repayment tenure of up to 300 months. The benefit comes with zero part-payment or foreclosure charges.

You can also read about how loan repayment works.

  1. Customized insurance schemes

Major financial service providers provide you with customized insurance plans that ensure that your family is safeguarded against repayments in your absence. It is recommended that you speak with a trusted financial advisor to ensure your loved ones are protected from debt resulting from the loan.

  1. Terms and conditions

The Home Loan Balance Transfer facility is available online on the portals of major financial providers. You can now easily access reliable information on the terms and conditions for the offering and compare products online. As a Home Loan Balance Transfer is essentially a new loan, loan providers often provide more convenient terms and conditions for the product. This is to ensure that they do not lose a customer who has a good credit score and a flawless record in repayments. You should negotiate terms with your financial provider for a lower EMI, longer tenure, or even a change in the MCLR (Marginal Cost of Funds based Lending Rate) reset period.

Home renovations can be expensive with carpentry, electrical, design, and other added costs. With providers such as Finserv MARKETS, you do not need to delay remodelling your home with significant savings and flexible solutions. It is recommended that you speak to a financial advisor to find a Home Loan Balance Transfer provider that suits your needs and those of your loved ones in your absence.

“Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we works towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App.”

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522