Home Loan Balance Transfer can be done by either applying for a new loan with the same loan provider or applying for a new loan with another loan provider who is offering a more affordable interest rate. You just need to get NOC from the current loan provider and apply for balance transfer with the new provider.
If another loan provider has better terms for the interest rate, loan tenure and the EMI amount, then you should consider Home Loan Balance Transfer.
Whether or not balance transfer is a good idea for Home Loan depends on the benefit of such an action. The revised interest rates should not be offset by the processing fees and prepayment penalty charged by the provider for settling the loan early.
It refers to the facility where the entire unpaid principal loan amount of your Home Loan is transferred to another bank for a lower rate of interest.
When you apply for a Home Loan Balance Transfer, the loan provider charges you a prepayment penalty between 2% and 5% of the outstanding balance and processing fees which may be between 0.5% and 1% of the borrowed amount for the premature settlement of your loan.
No. A Home Loan Balance Transfer does not lower your credit score. Once the loan is foreclosed the same is reported to CIBIL as ‘Closed’ and it would have no impact on your CIBIL Score.
It usually takes around 5 to 10 days to switch lenders. After you obtain a NOC and apply with the new lender, the new loan provider will evaluate your application and decide on your eligibility. You can get your Home Loan Balance Transfer application processed online and approved under just 3 minutes at Finserv MARKETS.
The maximum Home Loan amount you can apply for is Rs 3.5 crore.
Yes, if you need a top-up at the time of balance transfer, you can get it without any extra documentation.
Yes, you get the flexibility of choosing your Home Loan repayment tenure that goes up to 300 months and even part-pay or foreclose the loan without paying any charges on Finserv MARKETS.
No. There is no mandatory requirement for a guarantor.
Yes. You can transfer your Home Loan to another person if you are selling your property to that individual. It is, in fact, very convenient to do - if you have a running Home Loan and you plan to sell off your property, then the buyer can avail Home Loan from the same lender though an internal Home Loan Balance Transfer.
Yes. PMAY already offers a low-interest rate, so a Home Loan Balance Transfer would certainly be useful, but you have to be eligible for PMAY. You can learn more about the nuances of this scheme here.
Yes, you can. However, if you opt for Finserv MARKETS for your Home Loan Balance Transfer, you can benefit from lower interest rates, lower EMIs, top-up loans, among other benefits.
Once you have carried out a cost-benefit analysis to conclude that a balance transfer would be a beneficial option, you need to obtain a NOC from the current loan provider and apply for a balance transfer with the new loan.