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Understanding the Benefits of Home Loan Balance Transfer

By Finserv MARKETS - Jun 3,2019
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Understanding the Benefits of Home Loan Balance Transfer

People normally opt for a Home Loan Balance Transfer when they feel they have been paying a higher interest to their current lender as opposed to the market rates. When you opt for a transfer, the new lender pays off the principal balance amount to the old lender. Once the loan is settled with the previous lender, it releases all the documents pertaining to the property and the current lender takes charge of the property documents. After the settlement you start repaying the EMIs to the current lender.

What are the benefits of home loan transfer?     

Lower Interest Rates

The most common and obvious reason for a transfer is lower interest rates. This allows the borrower to save up and may reduce the overall tenure of the home loan.

Good repayment track record may get you good Rate of Interest (ROI) 

While opting for a transfer, if you have had a good repayment record, you can negotiate with the new lender for a lesser rate of interest. You can cite your record by producing your credit score, record of payments etc. making your case stronger.

Enjoy online account access

Transferring your Home Loan to Finserv MARKETS gives you the freedom to manage the loan online. You can not only apply for the transfer online but later also manage the loan online from the comforts of your home. After signing into the customer portal, you can view details like due EMIs, outstanding principal, loan details etc.

Top-up Loans

When you transfer the loan, certain financial institutions offer you top-up loans. You can take those loans and use it towards your home for either renovating it or re-furnishing it. You can also use for other purposes like your child’s education or a vehicle down-payment etc.

EMI free months

Right after making the transfer, Finserv MARKETS offers 3 months as EMI free months. During these months, you get to enjoy a cool-off period wherein you can arrange your finances before you start paying the EMIs again.

Miscellaneous

People also change lenders due to lack of quality service. When customer service is sidetracked after sanctioning the loan, people become irate. Borrowers always seek healthy communication with the lender. Not providing adequate information or not communication at all, will push the lender away. Leading him to look for better loan providers or lenders.

Home Loan Balance Transfer should be only done after carefully examining your current situation and analysing the money that you will save. Calculating the internal rate of return is also very crucial. If the outstanding balance in your current loan is too less then there is no point in transferring the loan. In that scenario, while doing the transfer you might end up paying more the current amount or end up paying the same amount. All the pain in getting the transfer done becomes pointless. However, if your loan is just a fresh loan and you are getting a better rate of interest elsewhere. You should weigh the suitable options and go for the transfer. Therefore, do the transfer only after analysing every situation.

Planning for a home loan balance transfer? Visit Finserv MARKETS and apply for Bajaj Finserv home loan balance transfer to benefit with features like quick disbursement, low EMI, minimal documentations and get a top-up loan without any extra documentation.

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