Apply for Transfer Home Loan
Home Loan Balance Transfer helps you reduce your EMIs by moving your outstanding loan from other financial institutes to the one which offers lower interest rate.
Home Loan Balance Transfer or Refinancing or simply Balance Transfer is the process that allows you to benefit from the lower interest rate offered by the other lender. If you have an existing outstanding home loan with one borrower, you can make a home loan transfer, that is, shift the remainder amount to a different borrower who charges a lower rate of interest, the process is termed as a home loan balance transfer or refinancing. This unique home loan transfer service helps a customer avoid high applicable interest rates as listed by one home loan lender and migrate to a lower interest rate structure with another lender.
So why one would need a balance transfer? A home loan involves a significantly large amount of money and therefore, the interest rate on the loan is a matter of concern for everyone who decides to take a home loan. Home loan interest rates may range from 6.80 % to 12 % and one of the most common ways to reduce interest rates is to either talk to the bank that has provided you the loan to reduce it or go for a transfer of the balance on existing home loan or in layman terms, shift your home loan to a bank offering lesser rate.
The most important benefit of availing a home loan balance transfer is saving money. The difference in interest rates between the two lenders, the tenure of the loan and the amount outstanding are the three primary contributing factors. If you see a significant benefit in the home loan interest rate, it may well be worth considering a switch to the new home loan lender. You must first and foremost identify the objective for availing of a balance transfer of your loan. Then you must just ensure that your new home loan helps you bring down your overall cost of acquisition. The reason of switching the lender could include:
Any salaried, self-employed professional or self-employed businessperson with an outstanding home loan that has been regularly serviced can apply for a home loan balance transfer. Though all loan providers have different eligibility criteria, some basic ones are as follows:
Your home loan balance transfer is treated similar to a fresh home loan application by the bank you are transferring the loan to. Therefore, while applying for your home loan to transfer to another bank, all the documents provided during the initial home loan application need to be resubmitted. These documents are then revalidated and vetted by the bank or NBFC providing the loan transfer facility. Documents are the most important element while taking up a loan because they best help the bank to identify the loan borrower to make sure of their loan borrowing and loan repayment capabilities. The prerequisite key documents for home loan transfers are the following:
State Bank of India A SBI home loan transfer offers unique advantages and exclusive benefits on the home loan to transfer, including one of the lowest interest rates, interest chargeable on a daily reducing balance, no processing charges, no hidden costs or administrative charges and zero prepayment penalties. With over 13,700 branches nationwide, banking with SBI is convenient and easily accessible.
ICICI Bank ICICI Bank allows you to save money by transferring your current home loan that you have availed from other Banks and Non-Banking Financial Companies (NBFCs). The bank offers door step service and benefit like additional top-up loan amount up to 100% of the original home loan. Other features including attractive interest rates and simplified documentation make ICICI Home loan transfers worth it.
HDFC Bank The HDFC Bank home loan balance transfer , leading home loan provider in India, is among the smartest ways to lower your EMI payments. Additionally, you get the option to get approved for a top-up home loan not exceeding Rs. 35 Lakhs on your current outstanding loan amount. Additional benefits include lower interest rates as compared to the original home loan, repayment options through core banking solutions as well as repayment options customised to your specific circumstances.
| Lender | Home Loan Balance Transfer Interest rate | Processing Fee |
| Syndicate Bank | 7.85% onwards | 0.125% of the loan amount with a min. of Rs. 500 & a max. of Rs. 5000 |
| State Bank of India | 6.95% onwards | Full waiver for homebuyers in approved projects |
| Kotak Mahindra Bank | 7.20% onwards | Up to 2% of loan amount |
| Axis Bank | 7.75% onwards | Up to 1% of the Loan amount subject to minimum of Rs. 10,000 |
| ICICI Bank | 6.90% onwards | 0.5% of the loan amount |
| HDFC�?Ltd. | 6.90% onwards | Up to 0.50% of the loan amount or�?Rs.�?3,000 whichever is higher |
| Indiabulls Housing Finance Ltd. | 8.99% onwards | Up to 2% of the loan amount |
| Piramal Capital & Housing Finance | 9.00% onwards�? | Up to 3 % of the loan amount |
| LIC�?Housing�?Finance Ltd. | 6.90% onwards | As applicable�? |
| Standard Chartered Bank | 7.99% onwards | Up to 1% of the sanctioned amount |
| Canara Bank | 6.90% onwards | 0.50% (Min. Rs. 1,500; Max. Rs. 10,000) |
| IIFL | 8.70% onwards | Up to 1.75% of loan amount |
| Federal Bank | 7.90% onwards | 0.50% of loan amount (Min. Rs. 3,000; Max. Rs. 7,500) |
| YES Bank | 8.85% onwards | 2% of loan amount or Rs. 10,000, whichever is higher |
*The facts and figures mentioned above are indicative and subject to periodic change.
Due to unalike interest rates offered by different banks and loan lenders for existing and new customers, several customers get upset with their high home loan interest rates. This is the point when you can consider a switch between banks and transfer your home loan to a bank offering lower rates compared to the existing one. Here is a guide to get you in the clear about Home loan Balance Transfers-
Step 1: Analyze cost benefits being offered Decide the viability of transferring your home loan by analyzing the current situation. Here are some guidelines to help you with the analysis:
Step 2: Get NOC from the existing bank Getting a No Objection Certificate (NOC) from your current home loan provider is a key step in the home loan balance transfer process. The other document that necessary to complete this step of the balance transfer system is a foreclosure letter along with the complete list of documents held with the bank as well as your payment history. In some cases, your current bank may try to retain your business by offering you a reduced interest compared to what you are currently paying. Make sure you analyse such a offer as well as other offers thoroughly before settling on a specific one.
Step 3: Apply To New Bank Now you must have all the required documents ready to transfer existing home loan to another bank of your choice. You will also require getting a No Objection Certificate from your housing society or builder to be submitted as a proof of ownership to the bank along with all other documents. Then, bank will check your ability to pay the monthly installments. While making the application for balance transfer, you can decide to top up the balance on your home loan, reduce tenure or change your home loan EMIs.
Step 4: Credit Approval At this step, bank will evaluate your application and decide your eligibility for home loan transfer. Extensive background checks and history assessment will be carried out before they give you a credit approval. These verifications include re-evaluation of your home loan, checking your credit history, checking the authenticity of ownership and document valuation. Once the issues related to Credit Approval are resolved, the home loan provider would provide you with documentation that mentions key information such as the new loan interest rate, tenure and other features. Once this step is completed it is time you decided whether to go through with the balance transfer to stick to your current loan provider.
Step 5: Documentation with Chosen Loan Provider At this point, if you decide to finalise the home loan transfer process, you would be required to complete the documentation process with your selected loan provider. They may require a few extra documents to complete the whole transfer process. Here, you have your home loan transferred at a low interest rate and better benefits.
Banks are very careful when allowing shifting your home loan, especially banks which take on the responsibility of the transferred loan amount. And that is where Creditexpertindia can help you.
Our Home Loan Balance Transfer Calculator can help speed up your decision-making process by sifting through all the offers available based on the information provided by you. Our online tool automatically generates a comprehensive comparison report based on your requirements to help you make an informed decision. Our calculator takes everything into consideration, such as your total and outstanding loan amounts, remaining loan tenure and the existing rate of interest on your home loan. We will also provide you with the fine print of the transfer agreement to aid your decision.
Q. When is a home loan balance transfer a good idea?
Ans. The key reason for transferring a home loan from one lender to another is to benefit from a lower interest rate provided by the new lender.
Q. Is there a limit to the amount I can transfer?
Ans. Yes. The maximum balance transfer amount is equal to the outstanding amount of the home loan.
Q. When should I not consider transferring my home loan?
Ans. You must not consider shifting your home loan if one of the following is applicable in your situation:
Q. Does my current credit score affect my chances of successfully completing the transfer?
Ans. In case your credit score has dropped significantly since you applied for the initial home loan, it might affect the process. As the balance transfer process works similar to applying for a new home loan, your credit score and history would play a key role in determining your eligibility for the home loan balance transfer.
Q. Will my refinance be affected by the prepayment penalty?
Ans. Most banks today wont have a prepayment penalty in the first place. But if your bank has it, then you can ask your new lending bank to take it into account. This will vary from bank to bank.
Q. How much time will it take to transfer my home loan from another bank?
Ans. Transferring a home loan is treated like buying a home loan all over again by the bank, the loan is transferred to. Therefore, it might take 15-20 days for the home loan to be transferred to the new bank.
Q. What is a top up loan?
Ans. For instance, if the property value of your home climbs much higher from its original price at the time you took the home loan and you might require more finance for your home renovation. In this situation you can add to your loan. This is called a loan top up.
Q. Can I get a top up on my loan along with the transfer?
Ans. Yes, depending upon your eligibility, the loan issuer can offer you the option to top up on the home loan to be transferred to the new bank but there may be processing and legal charges applicable.
Q. What processing fee is charged on home loan transfer?
Ans. Processing fees on transfer of home loans range from 0.5% to 1% of the loan amount.
Q. Is there any interest saving in EMI by home loan transfer to another bank?
Ans. The precise reduction in EMI varies based upon:
Q. What steps does a home loan takeover involve?
Ans. The simple steps following below are involved in transfer of your loan:
Q. What precautions must be taken when transferring a home loan?
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