Sign up for a home loan balance transfer plan for a period of up to 30 years and calculate your EMI with lowest interest rates offered at 7.20% p.a. The processing fee applicable ranges from 0.25% to 2% of the loan amount.
|Interest Rate||7.35% p.a.|
|Processing Fee||0.25% to 2%|
|Loan Tenure||Up to 30 years|
|Lowest EMI (per lakh)||Rs.679|
Note: The lowest EMI is calculated by considering a loan amount of Rs.1 lakh for a period of 30 years with the interest rate and processing fee being 7.20% and 0.25% p.a. respectively.
|Banks||Home Loan Transfer Rates|
|Bank of Baroda||8.20% p.a.|
|Kotak Mahindra||8.20% p.a.|
|GIC Housing Finance||9.10% p.a.|
|Standard Chartered||9.15% p.a.|
|DCB Bank||8.84% p.a.|
|Bajaj Finserv||8.30% p.a.|
With technology inculcated into finance, one can effortlessly estimate the details and benefits he/she would receive from transferring a home loan to another bank. One simply needs to enter the basic details of the existing loan like outstanding loan amount, interest rate, tenure, etc. By entering these details, the calculator would be able to estimate the savings you would incur by transferring your balance to another bank. Some websites also provide you with a detailed list of the banks that refinance a home loan along with the interest rates, processing fee, EMI, savings, etc.
The amount of money you can save will depend on the following factors:
For example, if the outstanding principal amount is Rs.40,00,000, the current EMI paid per month is Rs.40,000, the tenure of the current loan is 240 months (20 years), the interest rate offered by the new lender for balance transfer loan is 8.85% and, if the required tenure for the new loan is 240 months (20 years), you will save an amount of Rs.10,55,040. Your monthly EMI will reduce from Rs.40,000 to Rs.35,604.
The total amount to be paid will reduce from Rs.96,00,000 to Rs.85,44,960. If you opt for a shorter tenure, you may not save a lot of money but you can pay off the loan faster with while paying a similar amount of EMI as your existing loan.
Your home loan can be refinanced by following the steps mentioned below:
When refinancing a home loan, one must always take into consideration the processing charges and balance transfer fees. If the new bank’s interest rate plus these additional charges still prove to be cheaper than the current loan, only then should a customer choose to refinance the loan.
A home loan balance transfer can be availed 12 – 18 months after faithfully paying off your existing housing loan.
Home loan – A home loan is a loan availed from a bank or other financial institutions in order to purchase a house, land, construct a property or simply to renovate an existing property. A lot of documentation and verification is required to avail a home loan. It also is considerably harder to get a housing loan application approved.
Home loan balance transfer – This is when you transfer an existing home loan from one bank to another. Also known as refinancing, this also helps an applicant avail lower interest rates and better services. There is lesser documentation involved in home loan balance transfer and it easier to attain when compared to a home loan.
Yes, you can get tax benefits on the principal amount and the interest earned with the balance transfer scheme based on the Income Tax Act, 1961.
Yes, ideally you can sign up for a balance transfer facility even if you have taken a loan to purchase a house that’s under construction. However, this may vary from bank to bank. So, check with the concerned bank once before applying.
No, the interest rates for a balance transfer scheme offered by a particular bank are same as the home loan rates offered by that bank. But here’s how such schemes help you save on your repayments. Suppose you have taken a home loan of Rs.55 lakh from a bank at an interest rate of 9.50% p.a. for a period of 20 years. Upon calculation, your monthly EMI will come up to Rs.51,267. To reduce your repayments, you can transfer your outstanding balance to another bank by signing up for a balance transfer plan that’s offering you an interest of 8.70% p.a. This will automatically bring down your EMI considerably.
If you already have an existing home loan and have a payment track of 1 year or more against the loan, you can sign up for a loan transfer facility.
Yes, prepayment penalty will be charged based on the bank’s existing conditions for fees and charges.
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