Home Loan Balance Transfer: Know the Process Involved and Benefits

Home Loan Balance Transfer: Know the Process Involved and Benefits

Are you an active home loan customer dealing with higher home loan interest rates and paying bigger EMIs?  or

Did you come across an amazing home loan offer and regret that you should have waited to save on repayments? 

If you are also a home loan borrower with similar concerns, you don’t have to wait any longer. 

It is because you can now transfer your housing loan account to a lender offering a lower rate. 

This process is called a home loan balance transfer

But what about the home loan balance transfer process? 

Read on to know more

Here’s how to switch your home loan account 

  1. Submit an application to your current lender

While seeking the home loan balance transfer, you need to inform your existing lender about it via an application. While doing that, enlist your reasons for the balance transfer. 

  1. Collect the NOC 

Once you have submitted the application form, your current lender will contact you and offer you the No Objection Certificate (NOC). It is a vital document for your new lender. It signifies that your current lender has no issues with your switching the loan. 

  1. Submit all valid documents 

After receiving the NOC, you can connect with a new lender and submit all your documents. Other than the NOC and KYC documents, your property papers may also have to be submitted. Along with this, the interest statements, loan balance statements and a duly filled application form may also be needed. 

  1. Get confirmation from your existing lender

Once you have managed to furnish all relevant documents, you should wait for the final confirmation from your current lender. It is regarding the closure of your ongoing home loan account. It signifies that your home loan contract is no longer valid and has ended. Also, the terms and conditions governing are no longer valid. 

  1. Pay off all the charges and start afresh 

Now, the only thing you are left with is signing a new contract with your new lender and paying off the due charges. After you complete this, you can pay your next month’s home loan EMI to your new creditor. 

If you can follow this step-by-step guide, you will find no issues in carrying out the home loan balance transfer with a lender of your choice. After the procedure of the home loan balance transfer gets completed, you will be able to make the most of it. It will be in the form of enjoying lowest home loan interest rates, reduced EMIs and more. 

What benefits does the home loan balance transfer offer you?

A home loan balance transfer with a reputed lender provides you with many benefits. Let’s take a quick look.       

  1. Lower interest rate

The major reason why people go for a home loan balance transfer is to bring down their home loan interest charges. The balance transfer lets you save on home loan EMIs. 

  1. Better services 

If your current lender is unable to offer you better services, you can always switch your home loan to availing of feature-rich services. 

  1. Enjoy a high-value top-up loan

Your new lender will help you enjoy a high-value, top-up loan when you switch your existing home loan. As a result, your new lender will let you avail of a top-up loan of a higher amount. This way, you will be able to access a large amount to manage your other needs. There is no restriction by lenders on how you use the top-up loan amount. It also comes with a lower rate of interest and a tenor as that of the home loan. 

What are the eligibility criteria for a home loan balance transfer?

  • Your property must have been occupied or should be ready to occupy. 
  • You should have paid more than 12 EMIs on your existing housing loan account. 
  • You should ensure that there is no outstanding due on your current housing loan. 

If you can fulfil the discussed home loan balance transfer eligibility conditions, you would be able to carry it out successfully. 

Since you have an idea of how to proceed with the home loan balance transfer, you can begin by informing your current lender.  

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