Apply for Home Loan Balance Transfer

Home Loan Balance Transfer

Apply for Home Loan Balance Transfer at an Affordable Interest Rate

✓ Home Loan Balance Transfer Facility ✓ Multiple Lending Partners ✓ Attractive Interest Rates 

Apply for a home loan balance transfer at Bajaj Markets and get attractive interest rates starting from just 7.75% p.a. with a repayment tenure of up to 30 years. The processing fee on balance transfer ranges between 0.25% and 2% of the loan amount. You can also calculate your loan EMI with our home loan balance transfer EMI calculator.

Compare and Apply - Home Loan Balance Transfer Partners

Compare Home Loan Balance Transfer top lending partners at Bajaj Markets and choose as per your requirement.

Our Partners

Minimum Interest Rate

Loan Amount /Tenure

Bajaj Housing Finance Limited

7.75% p.a.

Max Loan Amount - ₹5 Crores

Max Loan Tenure - 30 Years

PNB Housing Finance Limited

8.00% p.a.

Max Loan Amount - ₹5 Crores

Max Loan Tenure - 30 Years

ICICI Bank

8.10% p.a.

Max Loan Amount - ₹5 Crores

Max Loan Tenure - 30 Years

Union Bank of India

7.90% p.a.

Max Loan Amount - ₹5 Crores

Max Loan Tenure - 30 Years

LIC Housing Finance

8.00% p.a.

Max Loan Amount - ₹15 Crores

Max Loan Tenure - 30 Years

Shubham Housing Finance

11.90% p.a.

Max Loan Amount - ₹40 Lakhs

Max Loan Tenure - 20 Years


*The interest rates and associated charges can vary from one lending partner to the other and are subject to policy changes of the partner.

Home Loan Balance Transfer Fees and Charges

Before applying for Home Loan Balance Transfer, one must take into consideration the below-mentioned Fees and Charges:

  • Home Loan Transfer Processing Fees: As the name suggests, this fee is collected by the relevant financial institutions at the time of the processing of the documents for home loan. Depending on the size of the amount that is yet to be repaid, your new lender can charge anywhere between ₹8,000-₹18,000 upfront. However, it must be noted that some of the Indian banks and financial institutions do not charge a single penny for the same.

  • Foreclosure charges: If a borrower wishes to repay all of his or her debt ways before the end of the loan repayment tenure, depending upon the amount that is remaining, the bank may charge them a small fee in order to make up for all of the interest they could have made had the loan repayment tenure been adhered to. Typically, the foreclosure charges do not exceed a total of 4% of the outstanding amount. Some of the banks do not even levy foreclosure charges at all, which is one of the motivations behind a borrower having their Home Loan Balance transferred.

  • EMI Bounce Charges: It is possible at times that a borrower may not be able to pay a particular instalment on time or the cheque through which the Home Loan EMI was being honoured ends up bouncing. In such a scenario, the bank levies what is known as the EMI Bounce Charges. However, it is not a mandatory charge and some banks do not choose to add the burden of the same on the borrower either.

  • Penal Interest Rate: If the borrower chooses to pay the EMI of their respective home loan on a later date, the bank sometimes charges what is known as a penal interest rate instead of levying the standard EMI bounce charges. The penal interest rates charged by banks and financial institutions tend to start at 2% for every month the EMI in question is overdue.

  • Convenience Fees: At times, the lending institution levies an additional form of fee for the benefits that the borrower will receive should they have their Home Loan Balance transferred to them. This is sometimes charged in addition to the Home Loan Processing Fee or in its replacement. One must take either one of those or both the charges into consideration while thinking about having their Home Loan Balance Transfer in order to assess whether or not the switch would be a lucrative endeavour.

Home Loan Balance Transfer Eligibility Criteria

The borrower must ensure that they meet the Home Loan Balance Transfer Eligibility Criteria which is the bare minimum for almost all of the lenders that have set up operations in India

Parameters

Minimum Requirement

Citizenship Status

A permanent resident of India

Work Experience

Minimum 3 years with a company of repute

Minimum Income Requirement

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

  • People living in 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.

Minimum Property Value

  • The properties of people living in the likes of Mumbai and Delhi must be worth ₹40 Lakhs at the very least

  • Bangalore, Pune, Hyderabad, Chennai, Thane, Navi Mumbai, Faridabad, Gurgaon, Ghaziabad, Noida and Greater Noida dwellers must have a humble abode which has a price tag of ₹30 Lakhs as bare minimum.

  • Residents living in cities like Kolkata, Ahmedabad, Chandigarh, Cochin, Coimbatore, Indore, Jaipur, Nagpur, Surat, Baroda, Nashik and Vijayawada must be owners of a property that has a minimum value of ₹20 Lakhs.

  • Aurangabad, Vizag and Lucknow-based homeowners must have their names on the ownership documents of a property that has a market value of at least ₹15 Lakhs.

Documents Required for Home Loan Balance Transfer

In the case of salaried individuals, they must furnish their latest salary slips going back at least 3 months or Form 16.

  • In the case of self-employed individuals, the applicant must furnish their audited profit and loss statements.

  • Last 6 months bank account statements

  • PAN Card/Aadhaar Card

  • Address proof

  • KYC Documents

  • Identity Proof

  • Photograph

How to Calculate EMI on Home Loan Balance Transfer?

The Home Loan Balance Transfer EMI amount that you have to pay to the new lender after having transferred your home loan depends upon the following factors:

  • The outstanding principal amount of the home loan.

  • The EMI is paid to the current lender every month.

  • The current outstanding tenure of the loan- number of months/years of the loan tenure remaining.

  • The interest rate of the new lender.

For Example, let’s say you wish to transfer a home loan with the current outstanding principal amount of ₹30,00,000, current monthly EMI of ₹30,000 and remaining tenure of 20 years (240 months). If the new lender is offering an interest rate of 6.90% per annum, your EMI, after the balance transfer, will reduce to ₹23,079 per month, which means, you will be saving ₹6,921 every month and ₹16,37,040 in total.

How to Apply for a Home Loan Balance Transfer?

Below mentioned is the process for applying for a Home Loan Balance Transfer:

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

  • Step 2: Enter your required loan amount and details of the existing property.

  • Step 3: You will finally get to know the loan eligibility amount.

  • Step 4: Submit your property loan document.

  • Step 5: Pay the secure fee online.

Home Loan Balance Transfer Features and Benefits

  • Low-Interest Rates: The most immediate and obvious benefit of getting your home loan balance transferred is the lower interest rate that you will have to pay, reducing your overall monthly home loan EMI outflow.

  • Flexible Repayment Tenure: Repay your loan over a flexible repayment tenure ranging up to 360 months.

  • Loan Top-Up Facility: You can avail of a top-up facility along with a balance transfer option. No extra documentation is needed.

Difference Between Home Loan and Home loan Balance Transfer

  • Home Loan: A home loan is availed to purchase a new residential property such as a house or an apartment or land. You can also apply for a home loan to construct a new house on an existing real estate. Home loans are usually secured loans and a lot of documentation is required for applying for a fresh home loan.

  • Home Loan Balance Transfer: It means transferring your existing home loan from your present lender to a new lender. Usually, borrowers consider a home loan balance transfer to save their money when they are getting a better interest rate from the other lender. Once the transfer process is complete, you owe the outstanding loan amount to your new lender. Since your loan application has already been approved by your present lender, a lot less documentation is required for a home loan balance transfer.

Home Loan Balance Transfer FAQs

What is a Home Loan Balance Transfer?

Home Loan Balance Transfer essentially enables borrowers to transfer their current loan obligations from one lender to another. Ideally, borrowers opt for Home Loan Balance Transfer facilities when an additional lender enters the orbit by offering a much more competitive rate of interest to them. On top of that, they are doing so on the very same loan that the individual in question is currently repaying to the bank that they took the loan.

 

How to transfer Home Loan from one bank to another?

Refinancing a Home Loan is only a good idea when an individual has made an account of all of the costs involved and even then, they turn out to be lower than the costs and charges his or her current bank is levying on them. Hence, it is important to make note of all sorts of fees that are going to be attached to the actual transfer process and other ones that are miscellaneous in nature.

 

Why and when must you avail of the Home Loan Balance Transfer?

You must consider transferring your outstanding debt to some other lender if you are getting a better rate of interest on the rest of the loan amount, and/or a waiver on the penalties charged by banks if you choose to make a prepayment of the loan or the kinds involved with late payments of EMIs. The benefits that you will receive depend upon the lender.

 

What is the maximum amount that can be transferred?

There is actually no capping as such. One can transfer the entirety of their outstanding Home Loan amount to a different lender, provided the endeavour seems to be worthwhile to them. You can learn more about the same on Bajaj Markets.

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

Yes, indeed. One can most certainly get a top-up from the very same financial institution at the time of having their balance transferred to some other lender. Interest rates on top-up on home loans, however, have historically been slightly higher than the home loan interest rate. 

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

Yes, one can get their repayment period extended at the time of getting their outstanding home loan balance transferred to some other lender. However, one must note that at the time of loan maturity, the age of the borrower cannot exceed 62 years, if they are salaried individuals. The age of self-employed borrowers, on the other hand, cannot exceed 70 years

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

A majority of the Indian lending institutions do not ask for a guarantor while taking over an existing home loan, partially due to the fact that the formalities concerning the same may have already been taken care of by the previous lender. However, it is entirely upon the bank to decide whether or not the borrower must come with a guarantor at the time of them trying to avail of the Home Loan Balance Transfer facility.

Is PMAY applicable for a balance transfer?

Yes, an applicant can apply for PMAY even after opting for Home Loan Balance Transfer Facility on the condition that he/she must have taken the Home Loan post-June 2015.