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✓ Home Loan Balance Transfer Facility ✓ Multiple Lending Partners ✓ Interest Rates Starting @ 8.25%

If one is looking to reduce their overall interest payments on your Home Loan, they might just want to get their outstanding dues transferred to a different lender that is offering a lower interest rate. But, before making the switch, the borrower must take a look at the interest rates of the lender and the processing fees that they charge. This article will take the reader through every detail of a Home Loan Balance Transfer Interest Rate facility.

Home Loan Balance Transfer Interest Rate and Processing Fees

The interest rates and processing fees charged by some of the major lending institutions for their Home Loan balance transfer facilities are as follows:

Lender

Interest Rates (% per annum)

Processing Fees

Bajaj Housing Finance Limited

8.70% p.a.

Up to 6% of the loan amount

PNB Housing Finance Limited

8.25% p.a.

0.25% to 0.5% of the loan amount

Union Bank of India

8.25% p.a.

0.5% of the loan amount of ₹15,000 (plus GST), whichever is higher

ICICI Bank

8.40% p.a.

Processing fee of flat ₹3,000 (plus GST) and an administrative charge of 0.25% of the loan amount, subject to a minimum of ₹5,000 (plus GST)

 

Home Loan Balance Transfer Foreclosure Charges

The two types of Home Loan balance transfer interest rates are:

Borrower Type/Interest Type

Time Period (Months)

Foreclosure Charges

Individual: Floating rate*

Greater than 1 Month

Nil

Non-individual: Floating rate

Greater than 1 Month

4% plus applicable charges

All borrowers: Fixed rate*

Greater than 1 Month

4% plus applicable charges

 

Home Loan Balance Transfer Processing Fee

Loan Amount

Processing Fee

0 – 25,00,000

Rs. 7,999

25,00,001 – 30,00,000

Rs. 9999

30,00,001 – 40,00,000

Rs. 14,999

40,00,001 – 50,00,000

Rs. 19,999

50,00,001 – 75,00,000

Rs. 24,999

75,00,001 – 1,00,00,000

Rs. 29,999

 

Factors affecting Home Loan Balance Transfer Interest Rates

Some of the factors that affect Home Loan interest rates are:

  • Income level: The monthly income of the borrower is an important factor that lenders consider while deciding on the interest rate for them. Borrowers with a higher income are generally considered to have a lower risk profile. This means that they can get such a loan at a lower interest rate.

  • Repayment history: The repayment history of the borrower is also a factor that is taken into consideration while deciding on the interest rate for them. If the borrower has exhibited a healthy repayment pattern in the past, they will also be considered to be someone with a low risk profile. This would eventually translate into a lower interest rate for them. On the other hand, if inconsistencies are spotted in the repayment history of the borrower, the lender can charge them a high interest .

  • Relationship with the bank: If the borrower has a savings account with the bank or has taken loans from them in the past, they can be given a lower interest rate. Additionally, if the borrower has taken loans from the bank in the past and repaid them on time, they can even negotiate the repayment terms with the institutions.