Home Loans Balance Transfer starting from 8.58%
For Salaried and Self Employed with Low Processing Fees
Home loans are long time commitments. Hence an average Indian would spend almost half his working life repaying a home loan. Interest rates on home loans fluctuate with each year. So it is highly possible that you might have signed up for a home loan at higher interest rate and now the market rate has reduced.
Eg: Mr. X took a home loan at 11.50% in the year 2010 for a period of 20 years. Now in 2015, the rate of interest is 8.50%. So that means you are repaying your home loan at a higher rate of interest when you could have been paying lower EMI.
What can you do in such a situation?
Balance transfer. A home loan balance transfer allows you to switch your home loan from existing bank to a new bank. This means you can avail all benefits that the new bank is offering. Mostly customers would switch to a new bank only because they are being offered lower interest rates, better terms and conditions.
What are the features of a balance transfer?
A housing loan balance transfer has multiple features like:
Lower Interest rates – The first most important reason why a customer would move to another bank is due to the new bank offering lower interest rates.
Top-up to outstanding loan amount – The next best reason a customer would opt for a balance transfer is the new bank offers you a top up loan amount above the current home loan amount. This means you get extra funds at lower rates.
Reduced or zero hidden charges – New banks would offer better terms and conditions than your existing bank as they want a new customer. Hence they would reduce or exclude all your hidden charges.
Customized repayment options – New banks will also offer better repayment options and benefits like interest free holiday and many more exciting offers to ensure you apply for a home loan balance transfer from them.
Prepayment is allowed – In order to ensure that your EMI burden falls sooner than ever, Banks provide prepayment option to their customers if they choose to shift their home loan via balance transfer. Usually they would not charge any fees when you transfer your home loan balance to the new bank.
These features of balance transfer help you in saving a lot of money. Hence please read all loan offers carefully. Research on Banks that are providing better deals so you can transfer your existing home loan to their bank. Apply via Ruloans and compare loan options from more than 20+ Banks and NBFCs.
Home loans are long tenure loans of up to 30 years and hence, you are bound to spend a large amount of your income in servicing it. Home loan interest rates matters as more than 50% of your home loan EMI component is loan interest amount you pay to the bank during the loan tenure. The current interest rates on home loan ranges from 6.95% to 12.15% with a lowest EMI of Rs. 655 per lakh. You should seriously consider transferring your home loan to another bank, if you feel that interest rate and EMI you are paying on your existing loan is higher than the lowest rate and lowest EMI offers in the market. Ideally, the benefit of home loan transfer is in the initial 4 to 5 years of loan as you pay the highest interest component in the initial years. Loan transfer in the mid or end of the tenure can work against you financially as you had already paid the higher interest part to the lender. So, before you decide to opt for balance transfer, do a thorough analysis of all savings and costs associated with the transfer of loan What are the benefits of transferring home loan? Reduction in interest rate from high rate to as low as 6.95% per annum Reduction in monthly EMI by upto 5% depending upon the rate difference, balance tenure and EMI Option to avail top up loan at same rate as home loan rate (6.95% to 8.8%) subject to eligibility conditions and loan to value ratio Lower interest rates and other discounts like nil processing fee offered by another lender Option to opt for smart saver home credit facility or maxgain facility to save interest Balance transfer options available at various banks like SBI, Bank of Baroda, HDFC, ICICI and others Watch the video if you are paying more than the lowest interest rate of 6.95% on your home loan Eligibility Criteria for Home Loan Balance transfer You can opt for home loan balance transfer if you have outstanding home loan in one bank. Basic eligibility criteria are age, income, employment history and loan to value ratio. Other main eligibility factors which are important for refinance home loan - Applicant must be running an existing home loan from another lender Some lenders may require that an applicant should have paid at least 6 to 12 EMI’s on existing loan before opting for balance transfer. However, at times, this condition may be waived and home loan takeover may be possible even if the loan has not run for 6 – 12 months There should not be any default in payment of EMI on existing loans In the case of under-construction property, the project must be approved with the new lender. Note that balance transfer of home loan on new property whose possession has been handed over but registration has not been done may not be possible In case of ready property, registration should have been completed Home Loan Balance Transfer Process Follow the below simple steps on how to transfer your loan from bank to another Check your current rate and calculate interest savings Calculate the estimated cost on account of various fees and charges as given above Shortlist new bank that you wish to transfer your loan to; decide if you want top up loan or not Obtain list of property documents deposited with your existing bank (in case this is not available with you already) and foreclosure letter from existing bank Apply for loan with new bank with photocopy of property documents as per list of property documents with existing bank Obtain sanction letter and execute new loan agreement Take disbursement from new bank by way of cheque/ demand draft in favor of existing bank and also deposit the same Obtain property documents from old bank and deposit with new bank Incidental charges such as SRO registration payable in Mumbai, Pune and other parts of Maharashtra Home Loan Balance Transfer Calculator With LoanATM Home Loan Balance Transfer Calculator, you can calculate your loan amount eligibility and also identify offers with lower home loan rates compared to your existing home loan rates. Do complete market research before you choose the bank to transfer your loan to and apply for a balance transfer in terms of current interest rates, processing fees offers, home loan top up schemes from various banks, movement in MCLR rates of the new bank in response to policy rate changes as well as customer reviews of the bank.
Usually it take 4 to 5 days to get loan approved after documents are submitted
Interest rates start form 10.99 to 18 % depending on the company category you are working for also your cibil score matters for interest rate
Just call us or simply fill the enquiry form on the page. We will collect your documents from your place and get your loan approved in quick time.