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During an ongoing home loan tenure, you may find the lending terms offered by a different lender to be more beneficial than the current one. You can transfer your outstanding home loan amount to this new lender in such a scenario.
This facility helps curtail your total repayment outgo and is called a home loan balance transfer. With different lenders providing various home loan balance transfer offers, you are often spoilt for choice.
To get your home loan balance transferred to another lender, you must satisfy the conditions laid out by these institutions. Once the parameters are met, transferring your home loan to your preferred lender becomes easy.
Read on to learn about a few crucial home loan balance transfer eligibility parameters and the necessary documentation to initiate the process.
When opting for a home loan balance transfer, you must meet the criteria set by the new lender. While these vary, there are a few common parameters across lenders to note.
You must be a citizen residing in India.
You must be in the age bracket of 23-65 years to qualify for a home loan balance transfer.
You must have completed at least 12 EMIs with your existing lender.
You must not keep any outstanding amount due with your existing lender.
You have to be a salaried or self-employed professional with a regular income source.
You must be living in your property or ready to occupy it.
Note that a few lenders set the minimum age criteria of 21 years when opting for a home loan balance transfer. Similarly, your maximum age must not exceed 65 years when your home loan attains maturity.
While some lenders require you to have at least a year of work experience, many others insist on a work experience of 3 years. However, if you are self-employed, your business vintage has to be at least 2 years.
Meeting these home loan balance transfer eligibility criteria can facilitate the process quickly. While the parameters mentioned above are crucial, there are a few conditions on your income source set by most lenders.
A regular source of income is also a must-have when planning to change your lender. Additionally, most lenders insist on a minimum monthly income of ₹20,000 for a salaried professional.
As a self-employed individual, your gross annual income has to be at least ₹3 Lakhs during a financial year. However, your city of residence also plays a role in deciding the minimum income factor by any lender.
So, ensure that you meet the home loan balance transfer eligibility terms for your city. Here are the income criteria set by lenders depending on the city you reside.
A minimum salary of ₹30,000 in cities like Delhi, Mumbai, etc.
A minimum salary of ₹25,000 for cities such as Bangalore, Chennai, Pune, etc.
The valuation of your property is also considered, and the minimum requirement varies according to the city it is located in. Properties in tier 1 and tier 2 cities with a high valuation are more likely to get the maximum sanction with ease.
Remember that these terms vary based on the lender. So, check with your lender to know the exact property valuation needed to qualify.
After checking your home loan balance transfer eligibility parameters, you have to submit the following documents.
In the case of salaried individuals, you have to submit the latest salary slips of the previous 3 months or Form 16
In the case of self-employed individuals, you need to submit your audited profit and loss statements
Last 6 months’ bank account statements
PAN Card/Aadhaar Card
Proof of residence
Other essential KYC documents
Proof of identity
Latest passport-size photographs
If your lender requires additional documents before sanctioning the home loan transfer, you may have to submit the same before approval.
Once you tick off all the checklist items required for a home loan balance transfer facility, you can apply for Home Loan Balance Transfer at Bajaj Markets.
Now that you are familiar with the home loan balance transfer eligibility criteria and the documents you need to submit to the lender after approval, here are some tips to improve your eligibility parameters:
Maintain a spotless credit history by paying your existing debts on time.
Avoid defaulting on your monthly EMI payments.
Build a good credit score of above 750 to increase the chances of transfer approval
Avail loans that are important, as taking multiple credit facilities can have a negative impact on your credit score.
Select a longer repayment tenure as it helps decrease your monthly instalments
Try adding a co-applicant having a good income source when availing loans, as you may get a higher loan amount.
The maximum limit is equal to your outstanding home loan amount.
Yes, credit score plays a crucial role when transferring your loan to a new lender. Both the score and credit history have to be good to initiate the process.
You can contact your preferred lender to understand the minimum income criteria. For example, while some lenders insist on a minimum monthly income of ₹20,000, others insist on ₹25,000.
Moreover, your city of residence also plays a crucial role when deciding the income parameters.
Yes, along with other documents, you must submit all relevant documents related to your existing loan to the new lender. This helps the lender understand all details related to your home loan.