We all have thought about transferring the home loan looking at a home loan advertisement providing a lower interest rate. Generally, all lenders offer a home loan transfer facility. If you are eligible you can easily transfer your home loan balance.
What is home loan balance transfer?
In simple words, home loan finance is called refinancing. When you transfer your existing loan to other lenders to ease the home loan interest rate and to get other facilities you opt for a home loan transfer. This is what is home loan balance transfer means.
Benefits of home loan transfer to other bank:
- Lower Interest Rate
Most people opt for home loan transfers to decrease the rate of interest. The lesser the interest rate, the lesser EMI you need to pay.
- Smaller EMI or Longer Tenor
At times borrowers opt for smaller EMIs to pay their EMI smoothly. It lowers the rate of interest and it also helps to bring down the total cost of the loan eventually.
- Part- Prepayment facility
In part prepayment facility you can pay a portion of your principal to bring down the home loan interest rate.
- Top-up loan
A top-up loan is required to cover other finances such as weddings, higher education, debt consolidation. A top-up loan is just like a personal loan. You can opt for a top-up loan for income tax benefits of up to Rs. 30,000.
What is the home loan transfer process?
If you are opting for a home loan transfer you should obtain a NOC from your previous lender and pay the existing loan to close it. Submit the required documents to the new lender.
I hope my answer on the home loan balance transfer was helpful.
Want to transfer your home loan? Try NoBroker to get the lowest interest rate from trusted banks.
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Authors Of The Question
What is home loan balance transfer?
Reema Gill
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2 Year
2021-12-29T17:47:47+00:00 2021-12-29T17:49:00+00:00Comment
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