Are big EMIs impeding your monthly budget? If it is, then it is the right time to keep your eyes on the balance transfer of your home loan. Apart from this, an applicant who is willing to take a loan has to overlook other aspects too, before transferring the balance of the loan from one bank to another. A balance transfer is an advantageous facility for the borrower who acquires a loan. But not many people are aware of this facility. Therefore, few people can get it. Balance transfer facilities are often provided by most of the banks and financial institutions for every type of loan such as personal loans, home loans, education loans..etc.
An applicant who is pledging to transfer a home loan to increase the repayment tenure of the loan and save the cost of interest rate. You can transfer a high amount for a home loan from any well-known bank to your bank to take a high loan amount and save interest.
You have to look carefully at the terms and conditions of the existing lenders before looking for new ones because there are many banks and financial bodies that do not allow you to transfer the balance for home loans from other banks. And if your lender does not then you can only do is renegotiate with the same lender.
Before opting for the balance transfer for a home loan, negotiate for a lower rate of interest with your existing bank. If you have a faithful relationship with your lender, then it might appraise your request and go through your repayment capacity of loan and credit history.
It is significant for an applicant to get a balance transfer facility. The borrower has to check several lenders in the market that provide a lower rate of interest. You would rather meet the preferred banks to talk about your needs and requirements that you might not find online.
The process of Transferring the balance for your home loan includes various charges like application fees, inspection fees, administration charges, processing fees, and many more. Some other charges will be charged by both new as well as existing lenders. Evaluate if the total amount in your transfer is less than the interest amount.
When you finalize some lenders, another criterion is to compare among them that can be the services and benefits provided with the balance transfer facility.
Before signing, make sure that you understand their terms and conditions to ignore any hidden charges. There are few banks that include the purchasing of insurance from a particular company or depositing an amount in a fixed deposit. Also, understand the pros & cons of their terms and condition.
The CIBIL Score of the borrower gives a clue as if you are eligible for the balance transfer facility or not. Your credit score should be good i.e., 750 or above. In case your credit score is poor then the chances of your balance transfer become less.
|State bank of India
|Bank of Baroda
|LIC Housing Finance Limited
|Karur Vysya Bank
|IDFC First Bank
|Tamilnad Mercantile Bank
|United bank of India
|Union Bank of India
|Kotak Mahindra Bank
Hence, financeseva allows you to choose and compare the best deals as per your requirements.
Also read: - Home Loan Eligibility Calculator