Home Loan Balance Transfer (HLBT) is a facility offered by most banks that allows you to transfer your housing loan from your existing lender to another bank. With HLBT, a customer has the freedom to shift the entire remaining balance of their home loan to another approved lender that offers lower interest rates.
Given the high property valuations in India and the large principal size of home loans, even a difference of even a few percentage points in the home loan rate can make a huge difference to the total interest paid by the customer. Thus, Union Bank of India (UBI) in association with Finserv MARKETS, offers HLBT facility at rates as low as 7.75% per annum. To check whether you are eligible for the UBI HLBT, here’s the eligibility criteria.
Union Bank of India offers HLBT interest rates in two brackets:
Within each bracket, the interest rate varies with the credit risk of the customer.
To meet Union Bank of India’s Home Loan Balance Transfer eligibility, an applicant must satisfy the following criteria:
Must be between 18-75 years of age.
Must have a minimum monthly income of Rs. 15,000. (for salaried applicants only) or must have a minimum profit after tax (PAT) of Rs. 12,500 per month. (for self-employed applicants only)
CIBIL stands for Credit Information Bureau (India) Ltd, an organization authorized by the Reserve Bank of India (RBI) to keep a credit record of every Indian. Your CIBIL score is a number ranging between 300 and 900 that assesses your repayment capability, and by extension, your creditworthiness.
Your CIBIL score is negatively affected by factors such as delayed EMI payments, multiple loan applications, too many unsecured loans, etc. To apply for Union Bank of India's Home Loan Bank Transfer, an applicant must have a minimum CIBIL score of 600.
Applying for Union Bank HLBT is simple and hassle-free. All that is required are copies of the following documents:
KYC documents such as Aadhar Card, PAN Card, Voter ID Card, etc.
Last 12 months’ bank statement.
Form-16/ Proof of Income Tax Returns.
Duly Filled Credit information form.
Two passport-sized photographs
Salary slip for the last 3 months (salaried applicants only) and Certificate and proof of business existence (self-employed applicants only)
In addition to the above, the following documents relating to your home/property for which the loan has been taken are required:
Title deed/Original Sale Deed/Share Certificate(s) issued by the society (duly registered) and other link parent documents conveying the ownership.
Agreement to sell/Allotment letter.
Copy of approved plan by the local body.
No-Objection Certificate (NOC) from Builder/Developer/Society.
Statutory and regulatory approval of construction of proposed residential units as per state laws.
Assessing the worthiness of home balance transfer depends on a number of factors. For instance, if you've already repaid the bulk of your home loan, then it may not be a good idea to balance transfer your home loan as there may be an additional processing fee involved at the bank you transfer to. If, however, you are in the early stages of repaying your home loan, and you have the option of transferring your loan to another lender that offers a significantly lower interest rate, then balance transfer might be a wise move.
Yes, a home loan can be transferred to another person along with a transfer of ownership of the associated property as long as the new borrower meets all the eligibility criteria of a home loan.
No, there is no mandatory requirement of a guarantor for a home loan transfer.
There is no maximum limit for home loan transfers. You can transfer your entire home loan balance.
Yes, you can get a top-up loan when you avail of a home loan balance transfer facility.