Rate of interest for home loan borrowed at floating rate option keeps modifying. The rate is dependent on repo rate as per RBI policy and internal bank policies. Housing loan are for long tenure, and it is possible that the rate of interest might increase or decrease during loan duration. In both the scenario, borrower must be on alert. If rate increased by lending bank, then borrower should check whether any other lender providing home loan at lower interest rate. In case of decrease in interest rate, borrower must get the benefit of revised ROI. There might be possibility that lender might not extend the rate benefit to existing customer. In both the scenario, borrower must switch loan to the other bank / NBFC with lower interest offering. The process is termed as Balance transfer facility in banking terms.
Balance transfer helps borrower to save money with immediate effect. Transfer Home Loan is normally processed within weeks, if required documents submitted on time and with no discrepancy. Transferring existing home loan to new bank / NBFC is not a tedious task and helps the borrower save sufficient amount of money and time. Balance transfer provides option to reduce monthly EMI or loan tenure or both marginally.
Get lower interest rate benefit with immediate basis
The monthly payment obligation reduces significantly
Amount of money saved is significant
Pay same monthly EMI & reduce loan tenure, saves more on total interest payable
Applying for balance transfer is easy, other lenders prefer balance transfer business as it’s low risk
Most lenders don’t charge for loan closure or a charge nominal fee
Most lender prefer sourcing home loan balance transfer business from other banks. Loan transfers are considered as low risk portfolio. This is because the verifications required to source a new customer, is already done during initial loan disbursement. If the borrower is paying EMI on time and without any defaults, it is a preferred risk to be underwritten. Apply now for Balance transfer, by just filling the above form.