Must-Know Things about Home Loan Balance Transfer in 2021
Are you an existing home loan customer who is not happy because of paying higher home loan interest rates in 2021?
Are you paying increased home loan EMIs and not unable to manage your outlays?
If yes, it is possible to switch your loan to a lender offering a lower rate. This way, you can enjoy paying reduced EMIs and save.
The facility is known as the home loan balance transfer.
Let’s know about the basics of the home loan balance transfer in 2021 in this article!
What is a home loan balance transfer?
The home loan balance transfer is the process of transferring your ongoing housing loan account to a new lender offering a reduced rate. In India, almost all leading banks and non-banking finance companies (NBFCs) provide this facility online.
What are the eligibility criteria for the home loan balance transfer?
I) Your property must already have been occupied or be ready to occupy.
II) You must have already paid at least 12 EMIs on your ongoing home loan.
III) There should not be any outstanding dues on your active housing loan.
Besides being able to enjoy a lower home loan interest rate, one can also avail of the top-up loan facility. A top-up loan is given by your new lender when you switch your home loan account. You are free to use the top-up loan money for any purpose as per your needs without restrictions.
The rate of interest charged on a top-up loan is almost the same as your active home loan. Even the tenor could be longer. If you have to fulfil other needs, there is no need to apply for a fresh loan. You can transfer your home loan and get all benefits.
When you go for a home loan balance transfer, you have to pay processing charges to your existing and new lender. Thus, you should estimate your savings earlier using the home loan balance transfer calculator online.
