People seek out home loans to help construct or buy a house. Sometimes, later down the line, they might realize that there are other banks offering much better schemes and interest rates and would prefer to transfer their loan to take advantage of these benefits.
When you transfer a home loan from Bank A to Bank B, Bank B pays off your dues to Bank A, and then you will continue to pay your loan at the new interest rate of Bank B along with the new terms and conditions. This process is also known as takeover or refinancing.
Reasons leading up to a decision to transfer the loan could be issues with the current bank such as high interest rates, bad networking, branch problems and low assistance. It could also simply be that another bank is offering better rates of interest.
SBI offers luring benefits to customers to transfer their home loans to them.
SBI will take over your loan from the following institutions:
SBI offers home loan transfer options with attractive benefits, some of which are listed below.
Your eligibility to transfer your loan to SBI depends on a variety of factors.
You will need two sets of documents. One set is specifically for the loan transfer, and the second set are regular documents you need to avail of a loan and fulfil the criteria set by the bank.For loan transfer you will require:
If you have decided to transfer your home loan, you will need to follow the process as given below.
It would be wise to do a cost analysis and see if switching over would save money. If the change in rate of interest is at least 1%, the transfer will be beneficial. Even though you may be free of processing fees, factor in other costs that come with transfer of loans before you make this decision. You can do a calculation of home loan transfers online.
When you transfer a loan, the whole process begins again for the new bank, so you might have to consider processing fees, valuation charges, inspection fee, lawyer’s fee, stamp duty, etc.
If your loan tenure remaining is very less, it wouldn’t be advisable to switch your loans as your interest component in your EMI is very less. To take full advantage of a transfer, it is best to switch earlier on in the tenure.
Yes. But the total quantum of loan will be determined by eligibility criteria applicable to Home Loans scheme which is based on income, EMI/NMI ratio, LTV ratio, etc.
Yes, SBI sanctions loans higher than the amount taken over for the purpose of renovation, extension, or furnishings. This is subject to the merits of the case and requirements and eligibility of the borrower.
Yes, your repayment period can be extended provided that the criteria regarding maximum permissible finance and security margin under the Bank's scheme are not diluted at any point of time.
Power of Attorney is a written legal authorization for another person to act on your behalf. It grants the person rights to handle your affairs with relation to the specified situation. SBI requires a simple power of attorney from you to give it the power to execute all required documents and transfer the title deed with minimum inconvenience to you. You are not required to sign a durable power of attorney which hands over rights in the event that you are incapacitated.