Home Loan balance transfer concept have come into picture because many loan borrowers are not happy with their present lenders. The procedure of transferring your existing Home Loan from one bank or NBFC to another lender for availing a lower rate of interest and saving money on your interest payments, is known as Home Loan balance transfer facility.
For example, if you have taken a Home Loan of Rs.50 lakhs for a tenor of 20 years at a fixed rate of interest of 10%, then you may be paying more interest. It will be better when the market interest rates fall, you request your existing bank to switch your loan to a floating interest rate. But in case your bank declines your request, you can opt for Home Loan balance transfer.
Facilities you can avail after opting Home Loan balance transfer:
Lower Interest Rate – If your existing lender is offering you higher rate of interest and you find some lender that has a lower rate, you can easily transfer your existing loan to another bank or NBFC or loan provider to enjoy a lower rate of interest.
Lower EMI – It will help to lower down the monthly EMI and you will be able to save money.
Top-up Loan – May be the lender you are choosing also offers a facility of Top Up Loan. You may want to renovate your home, but already have a Home Loan running, so to apply for a new loan will be a problem. You can apply for a Top Up Loan above your Home Loan and fulfill all your requirements.
To know more benefits, read: Revise your Home Loan with Balance Transfer