Home loan balance transfer, also called refinancing a home loan, is a process where a housing loan is paid off with another loan. People generally transfer the balance of a loan in order to attain lower rates of interest. In case a bank or other financial institutions are unwilling to reduce the interest rates on a particular loan, it can always be refinanced with a help of another bank.
In order to transfer a home loan balance, follow the steps mentioned below.
Step:1- Request your current lender for the documents required to refinance the loan.
Step:2- After the lender provides you with a consenting letter with the outstanding loan amount, these documents will have to be provided to the new lender you wish to refinance your loan with.
Step:3- The new lender will then transfer the outstanding amount to the old lender.
Step:4- The old loan account will now be closed, and all future payments will go towards the loan you have availed with the new lender.
Step:5- The old lender will then hand over all the property documents to the new lender, officially completing the refinancing process.
Although the process of refinancing you Housing Loan is a simple process in this day and age, one must be mindful about the process. An impetuous move to transfer the loan may cause more harm than good. Keep the following points in mind before transferring your home loan balance.
When choosing to move your existing home loan to another bank, take care of the following requirements:
Kindly carry along the following documents when you approach your prospective lender with regards to the home loan balance transfer. The success of any enterprise is in the documentation, right?
Last 3 years ITR (self and business),
Last 12 months bank account statement (self and business),
Profit and Loss Account,
Balance Sheets that are thoroughly audited by a certified CA,
Complete Business Profile and Proof of Business Existence.
|Home Loan Balance Transfer Rates|
|Bank||Lowest EMI||Interest Rates|
|LT Housing Finance||Rs.870 for 30 Years||9.90% - 10.75%|
|Vijaya Bank||Rs.780 for 30 Years||8.65%|
|Central Bank of India||Rs.769 for 30 Years||8.50%|
|Jammu And Kashmir Bank||Rs.994 for 15 Years||8.65% - 9.00%|
|Dhanlaxmi Bank||Rs.972 for 20 Years||10.10% - 10.35%|
|SBI Home Loan||Rs.755 for 30 Years||8.30% - 8.50%|
|HDFC Home Loan||Rs.758 for 30 Years||8.35% - 8.95%|
|Axis Bank||Rs.758 for 30 Years||8.35%|
|PNB Housing Finance||Rs.776 for 30 Years||8.60%|
|Bank of Baroda||Rs.755 for 30 Years||8.30% - 9.30%|
|LIC Housing Finance||Rs.769 for 30 Years||8.50% - 8.90%|
|Indiabulls||Rs.758 for 30 Years||8.35% - 9.75%|
|Citibank||Rs.805 for 25 Years||8.50% - 8.60%|
|DBS Bank||Rs.874 for 20 Years||8.60% - 8.85%|
|DHFL||Rs.776 for 30 Years||8.60% - 9.75%|
|Kotak Bank||Rs.874 for 20 Years||8.60%|
|Karur Vysya Bank||Rs.846 for 25 Years||9.10%|
|OBC||Rs.802 for 25 Years||8.45% - 8.55%|
|Karnataka Bank||Rs.841 for 30 Years||9.50% - 9.75%|
|Lakshmi Vilas Bank||Rs.935 for 20 Years||9.55%|
|Yes Bank||Rs.863 for 25 Years||9.35% - 10.50%|
|Standard Chartered Bank||Rs.871 for 20 Years||8.55% - 8.65%|
|Dena Bank||Rs.809 for 25 Years||8.55% - 8.80%|
|United Bank of India||Rs.772 for 30 Years||8.55%|
|Deutsche Bank||Rs.929 for 20 Years||9.45%|
|Edelweiss||Rs.944 for 25 Years||10.50% - 10.90%|
|IIFL||Rs.769 for 30 Years||8.50%|
|Reliance Capital||Rs.878 for 30 Years||10.00% - 11.75%|
|Indian Overseas Bank||Rs.780 for 30 Years||8.65% - 9.15%|
|Corporation Bank||Rs.794 for 30 Years||8.85% - 9.10%|
|PNB||Rs.758 for 30 Years||8.35% - 8.45%|
|City Union Bank||Rs.1,069 for 15 Years||9.90% - 11.60%|
|South Indian Bank||Rs.812 for 30 Years||9.10%|
|Bank of Maharashtra||Rs.783 for 30 Years||8.70% - 8.80%|
|Punjab and Sind Bank||Rs.787 for 30 Years||8.75% - 9.00%|
|RBL Bank||Rs.930 for 25 Years||10.30% - 11.65%|
|HSBC Bank||Rs.815 for 25 Years||8.65%|
|GIC Housing Finance||Rs.982 for 20 Years||10.25%|
|Indian Bank||Rs.868 for 20 Years||8.50% - 8.60%|
|DCB Bank||Rs.997 for 20 Years||10.48% - 11.35%|
|Federal Bank||Rs.805 for 30 Years||9.00% - 9.25%|
|Canara Bank||Rs.780 for 30 Years||8.65% - 8.75%|
|Union Bank of India||Rs.755 for 30 Years||8.30% - 8.35%|
|IDFC Bank||Rs.772 for 30 Years||8.55% - 8.60%|
Transferring the balance from your home loan, although beneficial, is time consuming and has a lot of procedure associated with it. Not to mention that you will be breaking off a relationship with a bank that may have served you well. Resetting your balance with the same bank, on the other hand, is a simpler process. Not many people do this because they are oblivious to the fact that one can simply rest the interest rate of a loan by simply writing to the bank. This is an easier process to follow in order to reduce the interest rate on a housing loan.
Therefore, the first choice should always be to rest the interest rate on a loan. In case the bank declines this request, you can always opt for refinancing afterwards.
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.
Grab your chance now!
The most diversified financial services provider in the country, Bajaj Finserv, has made available a great offer to its customers who wish to transfer their present home loan for a lower rate of interest. Individuals who make an application for a home loan balance transfer between the 20th and 26th of March can avail a truly attractive rate of interest along with a gift voucher from Tanishq as well as a 3-EMI holiday. What’s more? The approval of the loan could be complete within five minutes. Customers can also make the most of flexi schemes, part prepayment facility, and loan top-ups. Individuals who apply for a balance transfer and the value of the loan is more than Rs.30 lakhs can win a Tanishq voucher worth Rs.30,000. For loan amounts that range from Rs.20 lakhs to Rs.29.99 lakhs can win a Tanishq voucher worth Rs.10,000.
23rd March 2017
Grab your chance now!
In less than a day after RBI announced the landmark 50 bps cut in its chief policy rates during their fourth bi-monthly fiscal policy, State Bank of India has followed suit by bringing down the rate by .40 percent and the new rate currently stands at 9.30 percent. As India’s largest public sector bank, this step of SBI has set a high benchmark for other banks. Following suit, even smaller banks like Andhra Bank are reducing their rates by at least 25 bps, and the current rate is 9.75 percent as a result. This trend points to the fact that now is the ideal time to keep an eye on these rate shifts, particularly if you are planning to purchase a house with home loan or if you have a pending housing loan and switch accordingly.
14th January 2016
The State Bank of India has offered a complete waiver of processing fees on transfer of home loans from other lenders. SBI has made this move to combat an ongoing battle for market share with top banks like HDFC and ICICI bank. In an effort to establish itself as a serious retail lender, SBI already offers the lowest home loan interest rates at 9.70% for women borrowers and 9.75% for others.
With RBI’s ban on pre-closure penalties applicable on floating home loans, customers in India have been moving from one lender to another to get better interest rates. SBI’s home loan book had a 10% increase only due to transfers from other lenders and housing finance companies. This waiver will further strengthen the bank’s position as the preferred lender for home loans, with unbeatable interest rates.
29th June 2015