Home Loan Balance Transfer Bank Wise
In the event you are having trouble with your current home loan lender with regard to interest rate, bad networking, substandard customer service, etc., you always have the option to transfer your housing loan to another bank. In most cases, home loans are transferred to other banks as the existing lender is providing high rates of interest.
State Bank of India is one of the most prominent banks in the country providing home loans at very economical rates. SBI will takeover your loan from any of the institutions mentioned below.
|SBI Home Loan Balance Transfer Interest Rates|
|Category||Home Loan||Home Loan As Overdraft|
|Upto Rs.75 lakh||Above Rs.75 lakh||Upto Rs.75 lakh||Above Rs.75 lakh|
|Women||8.60% p.a.||8.65% p.a.||8.75% p.a.||8.95% p.a.|
|Others||8.65% p.a.||8.70%p.a.||8.80% p.a.||9.00% p.a.|
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:
The Other Regular Documents Required Are:
If you have decided to Transfer Your Home Loan, you will need to follow the process as given below.
Step: 1- Submit a request to your current bank (Bank A) for loan transfer. Address a letter to your bank and request them to transfer the title deeds and other securities to SBI immediately upon receipt of the loan amount.
Step: 2- Bank A will review it and issue a No Objection Certificate (NOC)
Step: 3- Submit the NOC to SBI and request them to transfer your loan and pay off your outstanding amount to Bank A by debiting your loan account.
Step: 4- SBI will validate the NOC, sanction your loan and pay off your dues to bank A.
Step: 5- A confirmation letter is required from Bank A stating they have created an equitable mortgage over the property.
Step: 6- Bank A will close your loan account and cancel all cheques or standing instructions related to your loan.
Step: 7- You continue paying off your loan to SBI at lowered rates of interest.
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.