LAP Balance Transfer Interest Rates

Looking to reduce your overall interest payments on your loan against property? You may just want to transfer your outstanding dues to a different lender offering more competitive interest rates. 

Before making the switch, you must take a look at the interest rates and processing fees that different lenders charge. This will help you get the most affordable deal. 

Here are the details of applicable charges and loan against property balance transfer interest rates of major housing finance institutions.

Current LAP Balance Transfer Interest Rates 2023

The loan against property balance transfer interest rates and processing fees charged by some of the major lending institutions are as follows:

This table will help make you an informed decision about where to shift your existing loan against property. Do note that lending institutions may charge you two types of Loan Against Property balance transfer interest rates. These are:

1. Fixed interest rate

This type of interest rate is calculated on the entirety of the loan amount and distributed equally over the number of EMIs. It does not take into account the constant reduction of the outstanding principal as you repay it. 

This type of interest is easier to calculate as compared to the reducing balance interest rate.

2. Reducing balance interest rate

This type of interest rate is calculated on the overall outstanding principal of the loan amount. The total interest payable reduces with time as you repay the loan through EMIs. Therefore, these loans are cheaper as compared to the ones with fixed interest rates.

With a better understanding of the rates, here is how you can apply for a LAP balance transfer when you have chosen the ideal lender:

• Check the eligibility criteria set by the lender

• Check the documents that will be required 

• Check the loan against property balance transfer interest rates

• Inform your current lender and fill in the application form for the new lender

• Submit your property documents, income proof and NOC from existing lender

• The new lender will verify your documents and let you avail the Loan Against Property balance transfer facility

Factors affecting LAP Balance Transfer Interest Rates

Some of the factors that affect loan against property balance transfer interest rates are:

• Income level 

Your monthly income is an important factor that lenders consider while deciding on interest rates. With a higher income, lenders consider you to have a lower risk profile. This means you can get such a loan at a lower interest rate.

• Repayment history

Lenders will also consider your profile as low-risk if you have exhibited healthy repayment patterns in the past. This translates into a lower interest rate. On the other hand, if lenders spot inconsistencies in your repayment history, they may charge you higher interest.

Lenders normally assess this by checking your credit score. 

Apart from these factors, loan against property balance transfer interest rates may also change based on the type of property you mortgage. Your chosen loan tenure may also affect the interest rates. 

• Relationship with the lender

If you have a savings account with a bank or have taken loans in the past, your prior dealings with a lender can help you get a lower interest rate. Additionally, if you have previously taken loans and repaid them on time, you can even negotiate the repayment terms.