As mentioned previously, a home loan balance transfer is done mainly to reduce the rate of interest a bit that in turn helps in the overall savings at the end of the month. If the rate of interest gets reduced, automatically the EMI amount will get reduced too, which will positively affect your family planning. The process is not much difficult and can be easily done online or offline if the required documents are kept ready and the transfer is done to a safe place.
The documents that are required for a safe home loan balance transfer are:
- The application form that has to be filled with necessary documents is required
- Identity proof- Voter card and PAN card is a must, along with these 2 any other identity proof would do like an updated passport, Aadhar card, driving license
- Another mandatory document is Address proof
- Financial documents like salary slips, other banking documents etc.
- Relevant papers of the property
- The document of the existing home loan
- No objection certificate from the existing loan lender.
When one decides to transfer the existing home loans, they should make a note of all the required documents, and then proceed, because, without these documents, the transfer won’t be completed. One should always trust reputed and secured lenders be it banks or other sectors, where the amount that is being transferred doesn’t get wasted later on.
What are the home loan balance transfer charges-RBI guidelines?
The sole objective of a home loan balance transfer is to reduce the rate of interest or get a lower rate of interest on EMI every month. To make the process easier, RBI has set few rules or guidelines set for the loan giving sectors, so that they abide by those rules and do not get an opportunity to charge anything extra from the customers.
- The loan lenders, be it a banking firm or any other sector, must not charge any fees processing the home loans.
- A person opting for a home loan balance transfer from one place to another would have to pay a penalty if there is a pre-payment of the loan amount.
Even the customers opting for the balance transfer loans should acknowledge and abide by the rules as well.
Some banking sectors that are good at home loan balance transfer?
People who seek for home loans and also balance transfer loans, often opt for banking sectors because of security, low rate of interests and also a handful of good benefits and offers that would be helpful for the future. There are various reputed banks that offer home loan balance transfer policies with low-interest rates and good benefits for their borrowers. Among them some are:
|
Banks |
The Rate of Interest of balance transfer loan |
|
Syndicate Bank |
Starts from 7.85% |
|
SBI |
Starts from 6.95% |
|
Kotak Mahindra Bank |
Starts from 7.20% |
|
Axis Bank |
Starts from 7.75% |
|
ICICI Bank |
Starts from 6.90% |
|
HDFC Bank |
Starts from 6.90% |
|
Axis Bank |
Starts from 7.75% |
|
Standard Chartered Bank |
Starts from 7.99% |
|
Canara bank |
Starts from 6.90% |
|
Federal Bank |
Starts from 7.90% |
|
Bank of Baroda |
Starts from 6.85% |
|
Yes bank |
Starts from 8.85% |
Lets now discuss in brief, on some of the reputed banking sectors, who have been successful in providing the ultimate customer satisfaction, when spoken about home loan balance transfer.
SBI home loan balance transfer
The State Bank of India is one such big name in the banking industry that has been quite successful in providing a very good service to its customers over the years. Starting from monetary tractions to managing home loans and loan transfers, SBI has always satisfied its customers.SBI enables the borrowers of home loan to transfer their balance loans from lenders of any other sectors, only the borrower has to have all the required documents to get the loan balance transfer procedure to get completed.
The key features of this scheme are:
- The rate of interest is low and starts at 6.95%
- The processing fee is 0.35% +GST
- No provision of penalty on pre-payment of loan
- Some benefits and discounts on women borrowers of home loan
- No concept of extra charges
Eligibility criteria for this scheme:
- Be an Indian citizen
- Between 18years to 70 years
- Have to have an Identity and Address proof
To apply online for SBI home loan balance transfer you can visit the online portal of SBI.
HDFC home loan balance transfer
One of the largest banks in the private sector is the HDFC bank. Most of the people trust HDFC because of the great offers and benefits that it offers. It is one of the best banks for home loans
and balance transfer, as the rate of interest that it offers is quite less compared to other banks. Not only this, some key features are exclusively offered by HDFC:
- The rate of interest for home loan balance transfer starts from 6.90%
- The processing fee is not more than 0.50%
- The repayment options are flexible and depend on its customers
- Special benefits for women loan borrowers
- The opportunity of expert consultation in terms of home loans
To apply online and also check your eligibility criteria for HDFC home loan balance transfer you can visit the online portal of HDFC.
Axis Bank home loan balance transfer
Axis Bank stands 3rd among the most reputed privately operated banking sectors. Be it opening a new account or a matter of home loan, Axis bank has always assisted its customers very well and has taken care of all the problems they come with. The offers and benefits that they have are very unique and nowadays they have personalized offers for their customers to fulfill their needs in the best way possible. Similarly, they provide a very smooth procedure of home loan balance transfer exclusively for their customers at an attractive rate of interest.
The key features of Axis Bank home loan balance transfer are:
- The rate of interest is very low, starting from 7.75%
- The processing fee is 1%
- People who are between 21-65 years are eligible
- The transfer will be done based on income
In this year 2020, Axis bank has come up with a special scheme of the home loan balance transfer, that includes:
- Very low rate of interest
- No pre-payment charges and can be paid off on the discretion of the borrower
- Easy procedure and hassle-free
- Loan top-up charges are the same as home loan
Bank of Baroda HLBT
Till now, the Bank of Baroda is one of the best in the market when we think of home loans. With a low rate of interest and processing fees, they have fulfilled the dreams of their customers of having a dream home. BOB comes with some exclusive home loan plans for their customers that are easy on EMIs and be paid off easily.
Some key features of Bank of Baroda home loan balance transfer are:
- The Rate of interest is quite low, starting from 6.85%
- The processing fee is up to 2%
- Both citizens of India and NRI’s are eligible
- The home loan account will be linked with a savings bank account, thus all the benefits of savings bank account can be availed
- Provides longer repayment tenure, up to 30 years
Also Read:
How to get Bajaj Finserv home loan?
Q. What is meant by pre-payment of a home loan?
Home loans are taken for a particular period on which monthly EMIs with a certain rate of interest is deducted every month from them. But if the borrower decides to close the home loan or maybe decides to shift, then they need to pay off the current loan amount first and then proceed further. So, when the loan amount is paid off before the date of completion, then it is called Pre-payment of home loans. Often some penalty is charged against this system by the current loan lenders.
Q. What is the home loan balance transfer interest rate?
The home loan balance transfer interest rate varies from different sectors and is not fixed for all, but it should be from 6.80%-12% (approx.)
Q. How will I know that I am eligible for a home loan balance transfer?
You have to keep a note of the following points to see if you are eligible or not.
• Any working or business professional with a home loan
• Should be capable of paying off the loan amount
• Has to be an Indian citizen.
• Age from 21-60 years if salaried, for self-employment, it can be 65 years
• The person has to have a good credit score, as a bad score might lead to rejection of the transfer by the lenders
• Employment should be for at least 2 years
Q. Is home loan balance transfer worth?
The home loan balance transfer is done to reduce the rate of interest on EMI every month and also for additional benefits and offers related to it. If you are thinking of transferring, then you have to make a comparative study between the 2 lenders and then conclude that which one is more beneficial to you for a long term basis. Even if the change is minimum then also transferring is worth.
Q. When is the correct time to transfer the balance loan?
There is nothing as such to be a correct time. It depends from person to person, but if the home loan is just 3-4 years old and other lenders are seemed to be more beneficial, then switching can be thought of. But at the same time, when the home loan at reached its maturity and is soon to be paid off then switching is not worth.
Q. Does the repaying tenure be increased on loan transfer?
Yes absolutely. Once you transfer the loan from one sector to another, immediately it becomes a fresh loan account of that particular lender. Thus, you can again choose a longer tenure of repayment from the day you are starting. But again, it depends from lender to lender.
