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✓ Home Loan Balance Transfer Facility ✓ Multiple Lending Partners ✓ Interest Rates Starting @ 8.50%

A home loan balance transfer is a facility that allows you to transfer the existing outstanding amount of your home loan to a new lender. You can either extend your repayment tenure or pay low interest rates by opting for this facility.

With this option, you can easily reduce the overall interest charged on the home loan, helping you repay the loan at affordable rates. However, it is vital to meet home loan balance transfer eligibility criteria before you decide to change your lender.

Knowing the entire home loan balance transfer process and the charges involved can help you zero in on the right lender. Read on to learn more about a housing loan balance transfer.

Home Loan Balance Transfer Details

Key features

Particulars of the Home Loan Balance Transfer facility

Maximum sanction

Up to the outstanding amount on the existing loan

Repayment tenure

Up to 30 years, based on the lender

Interest Rate 

Starting from 8.50% per annum

Processing fee

Up to 6% of the loan amount

Foreclosure charges

Nil for floating rate loans, and up to 4% on fixed rate loans

 

Compare and Apply for Home Loan Balance Transfer Online

Compare top lending partners for a home loan balance transfer at Bajaj Markets and choose a lender who best fits your requirements.

Our Partners

Minimum Interest Rate

Loan Amount /Tenure

Bajaj Housing Finance Limited

8.95% p.a.

  • Max Loan Amount - ₹2.5 Cr
  • Max Loan Tenure - 30 Years

PNB Housing Finance Limited

8.50% p.a.

  • Max Loan Amount - ₹15 Cr
  • Max Loan Tenure - 30 Years

ICICI Bank

8.90% p.a.

  • Max Loan Amount - ₹5 Cr
  • Max Loan Tenure - 30 Years

Union Bank of India

8.60% p.a.

  • Max Loan Amount - ₹15 Cr
  • Max Loan Tenure - 30 Years

LIC Housing Finance

8.65% p.a.

  • Max Loan Amount - ₹15 Cr
  • Max Loan Tenure - 30 Years

Shubham Housing Finance

10.90% p.a.

  • Max Loan Amount - ₹50 Lakhs
  • Max Loan Tenure - 25 Years

Shriram Housing Finance

11.50% p.a.

  • Max Loan Amount - ₹10 Cr
  • Max Loan Tenure - 25 Years

 

*The home loan BT (balance transfer) interest rates and associated charges may vary from one lending partner to the other and are subject to policy changes of the partner.

 

How to Calculate EMI on Home Loan Balance Transfer?

The Home Loan Balance Transfer EMI amount you have to pay to the new lender after completing the home loan balance transfer process depends on the following factors:

Before you complete the home loan balance transfer process, check the monthly instalment amount you have to pay to the new lender. Here are the factors that your Home Loan Balance Transfer EMI is based on:

  • The outstanding principal amount of the home loan

  • The EMI paid to the current lender every month

  • The current outstanding tenure of the loan, which is the number of months/years of the remaining loan

  • The interest rate charged by the new lender

For example, say you wish to transfer a home loan with the current outstanding principal amount of ₹30 Lakhs. Assume a current monthly EMI of ₹30,000 and a remaining tenure of 20 years (240 months). 

If the new lender offers an interest rate of 8.70% per annum, your EMI, after the balance transfer, will reduce to ₹26,416 per month. This means you will be saving ₹3,584 every month if you choose the same tenure of 20 years.

Home Loan Balance Transfer Features and Benefits

Features of Home Loan Balance Transfer Facility 

Benefits of Home Loan Balance Transfer

Lower interest rates

Eases your repayment burden

Flexible tenure options 

Opt for a tenure of up to 30 years and minimise  the stress on your monthly budget with reduced EMIs

Top-up facility when initiating a home loan balance transfer

Helps you access an additional loan amount with no restrictions on end usage

Hassle-free home loan balance transfer process

Allows you to enjoy speedy approval, so you can start saving more as you repay your home loan

Minimal paperwork needed

Helps you complete the formalities easily and quickly 

 

Eligibility Criteria for Home Loan Balance Transfer for Home Loan Balance Transfer

You have to meet the minimum home loan balance transfer eligibility criteria set by lenders across various financial institutions.

Parameters

Minimum Requirements

Citizenship Status

A permanent resident of India

Age 

Minimum of 23 and a maximum of 65 years

Work Experience

Minimum 3 years of experience in a reputed company

EMI Criteria

You must have already paid a minimum of 12 EMIs 

Minimum Income Requirement

  • Residents of Delhi, Gurugram, Faridabad, Greater Noida, Noida, Ghaziabad, Mumbai, Thane, and Navi Mumbai must have a minimum income of ₹30,000 per month in general

  • Residents of Bangalore, Pune, Hyderabad, Chennai, Ahmedabad, Kolkata, Jaipur, Chandigarh, Coimbatore, Nagpur, Surat, Cochin, Baroda, Indore, Vizag, Nasik, Aurangabad and Lucknow must be earning at least ₹25,000 per month in general

Minimum Property Value

  • Properties in metros like Mumbai and Delhi must be worth at least ₹40 Lakhs 

  • Properties in Bangalore, Pune, Hyderabad, Chennai, Thane, Navi Mumbai, Faridabad, Gurgaon, Ghaziabad, Noida and Greater Noida must be worth at least ₹30 Lakhs

  • Properties in cities like Kolkata, Ahmedabad, Chandigarh, Cochin, Coimbatore, Indore, Jaipur, Nagpur, Surat, Baroda, Nashik and Vijayawada must have a minimum value of ₹20 Lakhs

  • Properties in Aurangabad, Vizag and Lucknow must have a market value of at least ₹15 Lakhs

 

Note that these eligibility parameters for home loan balance transfer may vary across lenders. So, checking with your new lender is ideal before initiating the process.

Documents Required for Home Loan Balance Transfer

As a salaried individual, you must submit your latest salary slips of the previous 3 months or Form 16. If you are self-employed, you must furnish your audited profit and loss statements.

Apart from these, a few other documents required for starting off the home loan balance transfer process include:

  • Last 6 months’ bank account statements

  • PAN Card/Aadhaar Card

  • Address proof

  • KYC Documents

  • Identity Proof

  • Latest passport-size photographs

  • No Objection Certificate from your current lender

  • All details related to your existing home loan

  • Property documents 

How to Apply for a Home Loan Balance Transfer?

Here is the process for applying for a home loan balance transfer.

  • Step 1: Provide your personal, financial and employment details

  • Step 2: Enter the details of the existing property

  • Step 3: Select your preferred lender

  • Step 4: Enter the loan amount and repayment tenure.

That’s all it takes to initiate a home loan balance transfer. However, you may also talk to the lender’s representatives to understand the terms of this facility better.

Home Loan Balance Transfer FAQs

✔️What is a home loan balance transfer?

A home loan balance transfer enables you to transfer your current loan obligation from one lender to another. Ideally, you opt for this facility when you can avail a home loan at affordable interest rates from another lender.

✔️How to transfer a home loan from one bank to another?

You can refinance your home loan by checking if you meet the new bank’s eligibility criteria once you know that switching your loan can reduce your repayment burden. Then you can apply for a balance transfer once you get a No Objection Certificate from your existing lender. Then pay the applicable charges once your application is approved and you are done.

✔️Why and when must you avail the home loan balance transfer?

Consider transferring your outstanding debt to another lender if you are getting a better rate of interest on the remaining loan amount. Make sure you study all the costs involved and then transfer your home. This facility is usually more feasible in the first half of your repayment tenure when your EMI’s interest component is higher. 

✔️What is the maximum home loan amount that can be transferred?

There is no capping as such. You can transfer the entire outstanding home loan amount to a different lender, depending on the loan terms you are offered.

✔️Can I avail a top-up loan at the time of the balance transfer?

Yes, you can get a top-up from the same financial institution when you opt for the home loan balance transfer. Remember, interest rates on the top-up facility may be slightly higher than the home loan interest rate.

 

✔️Can the repayment period be extended at the time of the transfer?

Yes, you can extend your repayment period when opting for a home loan balance transfer. However, note that at the time of loan maturity, your age cannot exceed 62 years if you are a salaried individual. As a self-employed borrower, your age must not exceed 70 years.

✔️Do I require a guarantor for a home loan balance transfer?

A majority of Indian lending institutions do not ask for a guarantor while taking over an existing home loan. However, it is entirely upon the new lender to decide whether or not a guarantor is required when you avail the home loan balance transfer facility.

 

✔️What is the maximum tenure you can avail for a home loan balance transfer?

When applying for a home loan balance transfer, you can enjoy an extended period of up to 30 years. This also depends on the new lender you choose.

✔️Do I get tax benefits on a balance transfer?

You can enjoy the same tax benefits on your home loan repayment even after you complete a balance transfer. This includes a tax exemption on the home loan interest as well as the principal. However, when you take a top-up loan during a home loan balance transfer, you can only enjoy tax savings based on the end use of the funds.

✔️Are the applicable interest rates on a balance transfer loan higher than a home loan?

You should only go for a home loan balance transfer facility when the interest rate is lower. This way, you can save as you repay your remaining home loan.

✔️What are the RBI guidelines for home loan balance transfer charges?

As per the RBI guidelines for home loan balance transfer charges, you do not need to pay foreclosure charges on home loan with floating interests during the transfer. For a home loan with fixed interest, you may pay a fee up to 3% of the outstanding loan amount. However, lenders may choose to forego this and charge you a more affordable switchover fee. 

 

✔️What are the differences between a home loan and a home loan balance transfer?

You avail a home loan to construct a new house on an existing property or purchase a residential property such as a house, apartment or land. On the other hand, a home loan balance transfer means transferring your existing home loan from your present lender to a new lender. The usual reason for this is to get better interest rates from the other lender.

✔️Does a home loan balance transfer affect your credit score?

A balance transfer can positively and negatively impact your credit score. When the new lender conducts a credit inquiry, your credit score may dip slightly. However, transferring the outstanding loan amount to a new lender may lower your credit utilisation ratio and boost your credit score. As the interest charged on your new loan is affordable, you can pay your monthly instalments on time without burdening your monthly finances. Timely repayment helps improve your credit score while missing EMIs lowers it.

Home Loan Balance Transfer Glossary

  • Balance transfer: A process of transferring your outstanding loan amount from the existing lender to a new one.
  • Outstanding loan amount: The pending amount you need to repay to the lender.
  • Home loan: A fixed sum you can borrow from any financial institution when constructing or purchasing a property at fixed or floating interest rates.
  • Top-up home loan: The amount you borrow from the lender over and above your outstanding loan amount.
  • Fixed interest rate: The interest rate that does not change but stays the same throughout the tenure of your home loan.
  • Floating interest rate: The interest rate that changes per market conditions.
  • Pre-closure: Paying off your loan before your chosen tenure.