With PNB Housing Finance Home Loan Balance Transfer facility, you can now take some of the interest burden off your shoulders and even avail a handful of exciting benefits if you avail their services through Finserv MARKETS. At Finserv MARKETS, we pride ourselves on providing quality assistance to those who use the portal.
But, before we delve deeper into what PNB Home Loan Balance Transfer facility can offer you, let’s take a closer look at the very concept of Home Loan Balance Transfer facility. What you will find below is an overview of what exactly a Home Loan Balance Transfer facility is and how you can make the best of services such as the ones provided under the likes of PNB Housing Finance’s Home Loan Balance Transfer facility. Read on to know more.
As the name itself suggests, a Home Loan Balance Transfer Facility is a service provided to a particular borrower, through which they essentially transfer their current loan obligations from one lender to another. Typically, a home loan balance transfer facility is opted for by borrowers when some other lender is offering a better rate of interest to them on the very same loan he/she is currently honoring.
Additionally, sometimes lending institutions tend to levy a penalty charge upon the borrower should they choose to pay off their entire loan amount ahead of the completion of the repayment tenure. Some other lending institutions, on the other hand, tend to not charge a single penny as prepayment penalties. This could also be a driving factor for many to have their home loan repayment obligations transferred to a financial institution other than the ones they are currently honoring it with.
When you switch your loan from lender A to B, Lender B pays Lender A the loan balance that the borrower is supposed to pay them back in full. Parallary, the borrower starts honoring those very same EMI commitments with the new bank. It is deemed to be sensible for a borrower to put the loan through various rounds of modification such as opting for a long repayment tenure, because it tends to reduce the EMI amounts significantly. The extent of the savings will be contingent upon factors such as the outstanding amount, length of the tenure, the difference in the rates of interest and ancillary charges of switching loans, amongst others.
This is where services such as PNB Housing Finance’s Home Loan Balance Transfer facility come in. With PNB’s Home Loan Balance Transfer facility, you can repay the rest of your due obligations without feeling as much interest burden as you might be currently feeling right now, because PNB’s Home Loan Balance Transfer facility opens the doors for the borrowers to lower interest rates, as PNB has had a reputation of providing lending options at competitive and reasonable rates of interest.
As of now, for salaried individuals, PNB is providing a Home Loan of up to 5 crores at interest rates that are within the confines of 7.35% p.a. to 8.80% p.a., while for self employed individuals, the range of the rate of interest is 7.55% p.a. to 9.10% p.a. On the subject of loan repayment tenures, upon availing PNB Housing Finance’s Home Loan Balance Transfer facility, salaried individuals can pay off their loans over the course of as long as 30 years, while self-employed pupils can do it over 20. But, it must be noted that the repayment tenure length of those who transfer their loans to the institution via PNB Housing Finance’s Home Loan Balance Transfer facility will depend on the remaining outstanding amount.
If you have now finally made your mind to make use of PNB Home Loan Balance Transfer facility, we must tell you some of the options that you can take up before finally making the switch via PNB Housing Finance’s Home Loan Balance Transfer facility. What you will find below is a list of the same. Read on to know more.
If you have a cordial relationship with your current relationship manager/personal banker and have paid off all of your previous EMIs to your current bank on time, they may just consider your request of reducing your current rate of interest.
If the new lender is advertising a lower home loan balance transfer interest rate, it is essential to urge more information on their interest record.
Transferring your home loan involves several charges. In most cases, banks charge transfer fees which can be charged by both existing and the new lender. Hence, it is advisable to calculate the costs involved and assess if it is worth it. and in your transfer are but the interest amount that you simply will save by making the transfer or not.
Your credit score provides you with a transparent indication of your Home Loan Balance Transfer eligibility. Those who have not been consistent in repaying their EMIs on time will typically have a low credit rating, in which case there might be no point in trying to avail the benefits of a Home Loan Balance Transfer facility.
If you still want to make the shift with the help of PNB Housing Finance’s Home Loan Balance Transfer facility, you can follow the steps that you will see below and take the first steps towards it. Read on to find out the exact procedure which needs to be followed to avail the benefits of PNB Housing Finance Home Loan Balance Transfer facility.
If you have decided that you finally will make the transition, you must follow these simple steps to go for a Home Loan Balance Transfer:
Close the Deal Entirely With Your Current Lender: Before beginning with the PNB Home Loan Balance Transfer process, it is necessary for the borrower to urge approval from their current lender by sending a letter to them, requesting the transfer of your Home Loan. Once that goes through, you will get a No Objection Certificate (NOC) alongside the loan statement, which should have the net outstanding amount printed on it.
Give the NOC to the new Lender: Give the NOC (No Objection Certificate) to your new lender and initiate the process of Home Loan Balance Transfer with them.
Transfer your Property-Related Documents to the new Lender: After the completion of the transition, your property documents must be handed over to the new lender. Also, it is good practice to confirm that no documents are remaining with your previous lending institution.
If you want to learn more about PNB Home Loan Balance Transfer facility, you can do so on Finserv MARKETS.