With the rising prices of property, it’s difficult to buy a house that you want. In such a scenario, the home buyer will go for home loans. Home loans are the longest period of liability on the home buyer. It’s longer than business loans, auto loans, education loans, and personal loans. But there are ways one can reduce the burden of paying a high rate of interest on the home loan taken. One way of doing it is by transferring your home loan to another bank or financial institute which has a lower rate of interest. There’s also no penalty for doing so. You might get charged an amount for transfer but it will still be beneficial.
Following are the Key Takeaways of the Home Loan Balance Transfer:
Home loan transfer is the transfer of the outstanding of the existing loan from one bank to another. It basically means transferring your current loan to another loan in search of a better rate of interest.
A home loan balance transfer is just like taking a loan from a bank. It’s treated the same way by other banks or financial institutes.
The amount charged by the other bank or financial institute is 1% of the current loan you’ve taken.
After being done with the agreement of the transfer of the loan to the other bank, you have to pay the interest rate and EMI to the bank in which the loan is being transferred. She or he will owe the transferred amount to the new bank.
What are the Eligibility Criteria of the Home Loan Transfer?
- The applicant, he or she, should be an Indian citizen.
- The person should be between the age group of 21 years to 60 years.
- He or she needs to have a regular source of income
- He or she can be salaried, self-employed, or a business person.
- He or she should have a minimum salary to repay the home loan in the stipulated time period.
- Banks may even ask about the gross income of the family.
What are the documents needed for the home loan transfer?
- You will need identity proof – Aadhaar Card, Election Voter ID Card, Passport, Driving License, NREGA Card, PAN Card.
- You will need a recent salary slip or Form 16
- You will need an income tax return for the previous year.
- You will need a bank account statement for the last 6 months.
- Recent salary slip of last 3 months.
- Passport size photographs.
- If you are self-employed or a business person you will need Documents showing proof of business and financial statements
- You will need a copy of the home loan of the current bank and documents related to the home currently in possession.
- Bank statement showing the EMI paid for the home loan in the past 12 months.
The Bottom Line:
Nowadays the property rates have become sky-touching. It’s super expensive to buy your dream house. Hence you need to take the help of a home loan. Home loans are the longest liability a person, probably, takes. The interest rates are high in the banks which is why we should transfer it to the moneylender with a low rate of interest. It requires comparatively fewer documents. You can check out Bajaj Finserv Home Loan Transfer and PNB Housing Finance Balance Transfer. Head over to Finserv MARKETS for more!
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