The balance transfer is a loan transfer which can be transferred from one bank to another bank. The balance transfer helps the borrower apply for lower interest rates so Home Loan as to save money on higher interest rates. The balance transfer can help borrower save money for another purpose so as to satisfy other needs.
Features of Home loan balance transfer:
- Online Home Loan sanction facility.
- Quick sanction and low EMI.
- Simple documentation.
- Maximum tenure of 30 years or attaining of 60 years whichever is earlier.
- Amongst the lower rate of interest.
- No pre-payment of penalty.
- Available for housing of new construction/resale properties.
Home loan balance transfer loan:
- Top up loan available at attractive interest rate.
- Interest rate on top up loan: 9.00%
- Interest rates on floating interest: 14.70%
Maximum loan period:
- Loan to property cost:
- 90% of the repayment value for loan upto 30 lakh.
- 80% of the value loan for more than 30 lakh and upto 75 lakh.
- 75% of the loan value for loan above 75 lakh.
Maximum repayment period:
- For salaried up to 30 years.
- For self-employed up to 20 years.
Balance transfer helps the transfer from scheduled transfer bank from scheduled commercial bank [scb], private and foreign banks, housing finance companies registered with national housing bank and borrowers employers are central/state funding or public sector undertaking subject to the condition of the borrower should avail the criteria of availing the loan. The borrower should have valid evidence of the flat.
Documents required for the home loan balance transfer:
- Employer identity card.
- Registered agreement to sale.
- Proof of identity: Pan card/passport/driving license/ aadhar card.
- Proof of address: Recent copy of telephone bill/electricity/water bill/ piped gas bill.
Property Papers:
- Noc from society/builder.
- Registered agreement for sale.
- Occupancy certificate.
- Share certificate/maintainence bill, electricity bill, property bill.
- Chain of all agreement of sale.
Account statement:
Last 6 months bank account statement for all accounts held by the applicant.
Income for salaried applicant:
- Salary slip for last 3 months.
- Copy of form 16 and ITR returns.
Income proof for non-salaried applicant:
- Business address proof.
- It returns of last three years.
- Balance sheet & profit and loss statement.
- Business license details.
- TDS certificate.
- Certificate of qualification.
Documents for other bank:
- List of documents held at bank.
- Loan account statement for last one year.
- Sanction letter.
- Interim period security.
Other important points of home loan transfer:
- Transfer the outstanding balance of your home loan or from one lender to another.
- There is a fee usually equal to 1% of the loan transferred that is payable to the new lender for the home loan by the borrower.
- In most cases balance transfer is considered to new home loan transfer.
- In most cases, the home loan balance transfer on an existing home loan can only be availed for a pre-determined time period as mentioned on the original loan agreement.
- When the transfer is completed, the borrower owes the transferred principal loan amount of applicable charge to the new lender.
How to calculate loan amount on EMI transfer:
- Principal amount of outstanding loan.
- Current EMI paid per month.
- The current tenure of the outstanding loan.
- Rate of interest provided by the new lender loan can be transferred.
Steps to transfer home loan transfer from one bank to another:
- Go to concerned bank’s website.
- Check all the terms & conditions along with the interest rates & processing.
- If you are satisfied with the scheme, apply for balance transfer.
- You need to fill in required field including property type, tenure of existing of the loan among others.
- Upon completion, you will be able to view the loan offer.
- Pay all necessary fees & documents.
- Complete for application and wait for approval.
Conclusion:
Thus we can conclude that the loan transfer is a better option to save money on interest payout on principal amount. Loan balance transfer helps borrower take benefit of lower interest rates on interest payout of loans.
