Frustrated with Your Home Loan Lender? Here is the Solution for Best Bank for Loan

Answer these questions and think of a solution for the best bank for your requirement.


How many of you are frustrated with your home loan lender? Either for a loan disbursal or for a balance transfer or the most important for the higher interest rate changes!!

new home laon, balance transfer, or any loan, get the best product via loanyantra
Frustrated with your lender? Your lender doesn’t reduce your loan interest rates? Chill out…Loanyantra is the solution.


How many times do you postpone going to a bank for a balance transfer and doesn’t go because you didn’t research which bank is giving lowest interest rate or which bank charges less on the balance transfer?


How many office hours do you spend to visit the bank on your home loan work?


How many of you didn’t research before taking a home loan and now taking the pain?


How many of you dream of closing the home loan fast but don’t know how and when?


Do you know, 50% of the people in India use banking portals. Out of which 40% use them for research. 18% of the time is spent on searching for the best banks while on internet.


The one-stop solution for all these is
www.loanyantra.com
Visit the website and fill the details. Get a solution to all these questions. Truly a reliable, economical, one-stop solution.

Home Loan Balance Transfer – Eligibilty, Calcualtor, Documentation

HOME LOAN BALANCE TRANSFER

Home Loan Balance Transfer is switching your lender or transfer your balance loan amount from one bank to other bank for quite some valid reasons. Buying a home was never as easy as it is today. Home loans are a great way for people to fulfill their dream of buying a home. However, home loans are dependant on EMI, tenure and interest rate. The home loan interest rate, 2018 varies from 8.35% to 12 %. And interest rate changes according to the RBI’s repo rate which depends on the economy’s growth. EMI depends on the tenure of the home loan. Tenure can be fixed to 20 years to 30 years. So, the EMI varies according the interest rate and tenure of the home loan. Over a period you might feel burdened with the pressure of EMI payment because of the change of interest rates, in such cases, one can opt for home loan balance transfer.

Home loan balance transfer is an excellent facility given by the banks to people to transfer their home loan from one bank to another where the interest rates are lesser. But, before getting ahead, let’s have an understanding of home loan balance transfer.

WHAT IS HOME LOAN BALANCE TRANSFER?
This term is popularly known as refinancing or Balance Transfer. It allows you to reap the benefits of lower interest rates offered by other banks of financial institutions. Usually people having a remaining home loan amount transfer it to another bank or NBFC which is offering a lower interest rate. To sum it in simple words, home loan balance transfer is the process of transferring the outstanding loan amount. It saves the borrower from the pain of high interest rates.

WHAT ARE THE KEY FEATURES OF BALANCE TRANSFER:

  1. It involves transfer of outstanding home loan from one lender to another lender.
  2. It requires payment of processing fee which is about 1% of the loan transferred amount which is remaining loan amount.
  3. The entire process of balance transfer of home loan involves similar paperwork and other formalities as it is in the case of home loan.
  4. One can only apply for home loan balance transfer only after certain number of years of availing home loan. This time period is pre-determined and is mentioned in the original home loan agreement.

The Home Loan Balance Transfer, also called the ‘refinancing’ of a Home Loan, may be advisable under certain circumstances. However, it may not always be the ideal solution for the problems you face with your lender.

For more information – http://loanyantra.com/blog/what-is-re-financing.html

BENEFITS OF HOME LOAN BALANCE TRANSFER

The first and the foremost advantage of home loan balance transfer is, it saves your money. Usually, people go for the option of balance transfer if they find any lender is offering a lower interest rate as compared to their current lender. The difference of interest rates, the tenure of the home loan amount and outstanding amount are the contributing factors in the process of home loan balance transfer.

It is always advisable to make a switch of banks or lenders for your home loan, after you have thoroughly analyzed the interest rate difference between the two lenders. Once you find that there is going to be a significant difference, you must go ahead. If you are going for home loan balance transfer, you must first know the rules for the same and also do the cost-benefit analysis. It means that this process of refinancing must bring down your monthly EMI or lessen the time period and also decrease the cost of acquisition.

REASONS FOR HOME LOAN BALANCE TRANSFER-

Do you experience atleast one among the below mentioned reasons –

  1. Frustrated about the lender because of delayed and laid back customer solutions for queries and requests?
  2. Paying more than the existing rate of interest?
  3. Attractive products with other lenders?
  4. More discounts and benefits with other lenders?

If you feel yes, for any of those, then you have to surely look out for a balance transfer option with reduced EMI every month which helps you to plan something more important in your budget. Cutting down the total amount of money to be paid as the interest on the loan which means it in turn reduces the tenure of the home loan also. Also apply for home loan balance transfer to avail attractive discounts and benefits offered by another lender. Save time, money and energy with Balance transfer.

When Can You Go For A Home Loan Transfer

ELIGIBILITY CRITERIA FOR HOME LOAN BALANCE TRANSFER –

Similar to other loans, to avail the home loan balance transfer one must be eligible and hence it becomes important to know about the eligibility criteria for refinancing or home loan balance transfer. Anyone who has availed home loan is eligible for home loan balance transfer. An important point to note here is that if you have regularly paid your EMIs of home loan, you can go for home loan balance transfer. Although the criteria by most of the lenders remain the same, you may find some difference with each lender.

But, here is a generic eligibility criterion for home loan balance transfer :

  1. Firstly, you must be an Indian national above 21 years of age to be eligible for home loan balance transfer. The age bar is between 21 to 60. For a self-employed individual the age slab is up to 65 years.
  2. You must have an excellent credit rating. Irrespective of the fact that you had good credit rating at the time home loan application, if the credit rating decreases after applying for home loan, you might not be able to avail home loan balance transfer facility.
  3. If you are a salaried professional, you must be employed with your current professional for a certain number of years. Usually, this period is two years.
  4. You must have the capacity to repay the loan.
  5. Some banks may ask for Minimum sum gross family income as mentioned by the lender.

HOME LOAN BALANCE TRANSFER RULES

The rules for home loan balance transfer include submission of all the documents and papers (discussed later), submission of ID and address proof, good credit history, good CIBIL score and surety that as an individual you would be able to repay the loan amount to the bank or NBFC.

As per the RBI guidelines for home loan balance transfer and home loan, the money lenders or the banks are not allowed to charge anything for prepayment of floating interest rate loans. Thus, the home loan balance transfer charges as per RBI guidelines are also influenced by this decision.

DOCUMENTS FOR HOME LOAN BALANCE TRANSFER

Home Loan Balance Transfer Documents required by the banks or NBFCs :

  • Passport-size photographs of the borrower and the co-applicant if any.
  • Completely filled application issued by the financial institution.
  • The latest or the last three months salary slip as asked by the bank
  • Bank’s last six-month statement showing salary credited.
  • ID proof like Pan card, Adhaar card (mandatory), driving license, voter ID, Passport and employment ID card in case of salaried professional.
    Proof of address
  • Proof of Age (Either of these): 10th or 12th Marks Cards, PAN Card or Voters ID Card.
  • In case you are self-employed or a businessperson, then you have to submit documents which prove the existence of your business and academic qualifications along with the financial statements.
  • Bank statements which show that home loan EMI deduction. Usually, it is of last 12 months.
  • Loan statement of the company and the entire set of documents related to the property that is currently in possession of the home loan provider.

Just like your home loan or any other loan, in case of home loan balance transfer you are required to go through some paperwork, which assures the lender that you can repay the loan amount. Banks or other financial institutions require you to submit certain documents so that they can proofread it and also adjudge your credibility for home loan balance transfer.

All these documents provided by the borrower is revalidated and vetted by the bank or NBFC. You must make sure that all the documents are correct and appropriate as the approval of the bank depends on your repayment capabilities which are decided by the documents.

HOME LOAN BALANCE TRANSFER PROCEDURE

The process of balance transfer of home loan involves a few basic steps –

Your first step for home loan balance transfer is to send an application for Home Loan transfer to your current bank. They should then provide a No Objection Certificate (NOC), foreclosure letter, a statement specifying the outstanding balance on your Home Loan, a statement of your EMI payments so far, and a list of the loan related documents available with them.

For balance transfer, you have to submit the documents to the new bank, along with whatever else they may ask for. This might include your KYC documents, income proof, a no objection certificate from the builder/developer if they are being repaid through the Home Loan.

The new lender will then verify all the information, and do a complete reassessment of your creditworthiness and property. Once the loan is sanctioned, the representatives of the two banks will meet. The new bank will hand over the cheque for foreclosing the old loan and the previous lender will hand over all the relevant documents to the new lender.
Now, your Home Loan is with the new bank and you can enjoy the benefits offered by the switch.

HOME LOAN TRANSFERS TO SBI, ICICI, HDFC BANKS – 

Usually, people look for Home loan transfer to the top most lenders in the market like :
SBI or State Bank of India
ICICI Bank
HDFC Bank

STATE BANK OF INDIA HOME LOAN BALANCE TRANSFER  – SBI is one of the most trusted banks in India and offers great benefits and advantages. The SBI home loan balance transfer scheme with a low-interest rate is one of them. The SBI is one of most convenient and easily accessible bank. SBI home loan balance transfer charges are Up to 0.35% of your outstanding loan amount (maximum ₹11,500) (one-time fee).

ICICI BANK HOME LOAN BALANCE TRANSFER : ICICI BANK is also one of the leading private banks in India. ICICI offers benefits like top-up loan amount up to 100% of the original home loan. Apart from this, ICICI bank offers to lure interest rate and simplified documentation. The ICICI home loan balance transfer charges are 0.5 % of your outstanding loan amount(Maximum. ₹11,500) (one-time fee)

HDFC BANK HOME LOAN BALANCE TRANSFER : HDFC BANK is one of the leading home loan providers in India. You get an option of the top-up load which doesn’t exceed Rs. 35 lacs on your current outstanding amount, The series of benefits by HDFC banks include lowered interest rate, customized repayment options, and simplified paperwork. HDFC home loan balance transfer charges are up to 0.5 % of your outstanding loan amount.

HOME LOAN BALANCE TRANSFER CHARGES FOR THREE MOST POPULAR BANKS:

SBI HOME LOAN BALANCE TRANSFER FEES

Processing Fee
  • 0.35% of the outstanding loan amount
  • Minimum Rs.2,000 or Maximum  Rs.11,500

ICICI BANK HOME LOAN BALANCE TRANSFER CHARGES

Processing Fee 0.5 % of outstanding loan amount or Maximum. ₹11,500 (One-time  fee)

HDFC HOME LOAN BALANCE TRANSFER CHARGES

Processing Fees •    For a self-employed professional it is Rs. 3000 or 0.50% of the outstanding loan amount, whichever is higher along with the taxes.

•    Self-employed non-professionals it is Rs.4,500 or 1.50% of the outstanding loan amount, whichever is higher, plus the applicable taxes.

Salaried individuals it is  Rs.3000 or 0.50% of the loan, whichever is higher, plus the applicable taxes.

 

COMPARATIVE ANALYSIS OF HOME LOAN TRANSFER OFFERS

BANK HOME LOAN TRANSFER INTEREST RATES PROCESSING FEES LOWEST EMI PER LAC FOR 30 YEARS
SBI 8.35% 0.50%
Minimum Rs. 10,000 – Maximum Rs. 10,000
Rs.758
ICICI 8.45% 1.00%
Minimum Rs. 5,000 – Maximum Rs. 5,000
Rs. 765
Bank of Baroda 8.40% 0.50%
Minimum Rs. 7,500 – Maximum Rs. 20,000
Rs. 762
HDFC 8.40% 0.50%
Minimum Rs. 10,000 – Maximum Rs. 10,000
Rs. 762
LIC Housing Finance 8.50% 0.50% Rs. 769
Union Bank of India 8.30% 0.50%
Maximum Rs. 15,000
Rs.755
Syndicate Bank 8.55% 0.13%
Minimum Rs. 500 – Maximum Rs. 5,000
Rs. 772
Axis Bank 8.40% Minimum Rs. 10,000 – Maximum Rs. 25,000 Rs. 762
DHFL 8.35% 0.50%
Minimum Rs. 2,500 – Maximum Rs. 20,000
Rs. 758
PNB Housing Finance 8.85% 1.00%
Maximum Rs. 10,000
Rs. 794
Indian Overseas bank 8.40% 0.53%
Minimum Rs. 8,900 – Maximum Rs. 13,350
Rs. 762
South Indian Bank 9.00% 1.00%
Maximum Rs. 10,000
Rs. 805
Federal Bank 8.95% 0.50%
Minimum Rs. 3,000 – Maximum Rs. 7,500
Rs. 801
Central Bank of India 8.45% 0.50%
Maximum Rs. 20,000
Rs. 765
United Bank of India 8.45% 0.59%
Minimum Rs. 1,180 – Maximum Rs. 11,800
Rs. 765
Canara Bank 8.65% 0.50%
Minimum Rs. 1,500 – Maximum Rs. 10,000
Rs. 780
Vijaya Bank 8.65% 0.50%
Minimum Rs. 1,000 – Maximum Rs. 20,000
Rs. 780
LT Housing Finance 9.90% 2.00%
Minimum Rs. 4,999
Rs. 870
Punjab and Sind Bank 8.40% 0.25%
Minimum Rs. 1,000 – Maximum Rs. 15,000
Rs. 762
IDFC Bank 8.65% Minimum Rs. 2,500 – Maximum Rs. 2,500 Rs. 780
Bank of Maharashtra 8.65% 0.50% Rs. 780
Reliance Capital 10.00% 1.00%
Minimum Rs. 3,000 – Maximum Rs. 6,500
Rs. 878
PNB 8.35% 0.50%
Minimum Rs. 20,000 – Maximum Rs. 50,000
Rs. 758
Syndicate Bank 8.55% 0.13%
Minimum Rs. 500 – Maximum Rs. 5,000
Rs. 772

HOME LOAN BALANCE TRANSFER EMI CALCULATOR :  

Before opting for a balance transfer, calculate your EMI, as per the interest rate and tenure. Switch homes only when you make really a prominent impact. Do your math and then enjoy the benefits. Make sure you are on the right path. Use Loanyantra’s balance transfer calculator and choose your lender.

http://loanyantra.com/Balance-Transfer-Calculator.aspx#Balance-Transfer-Calculator

HOME LOAN BALANCE TRANSFER AND CO-BORROWER : 

While you refinance your home or look of balance transfer, your chosen lender will also look for your credit score. At the same time, the lenders look for your co-borrower’s credit score too. So, carefully choose and your co-borrower while you opt for loan balance transfer.

How to add a co-borrower when you refinance a home?

HOME LOAN BALANCE TRANSFER FOR NRIs – 

Home loan balance transfer for NRIs is also made easy as one can give the power of attorney to a reliable person. So, choose any lender and fulfil all the required steps and get the balance transfer from different banks done. Learn more –

Applying for Home Loan or Balance Transfer as an NRI / OCI/ PIO

LOANYANTRA.COM AND HOME LOAN BALANCE TRANSFER – 

Loanyantra.com is a name synonymous with providing simplified loan services to the people who are planning to buy home. Our one-stop solution web portal will guide you through home loan schemes, procedures, documentation and find out the best bank or NBFC that helps you avail loan at a lower interest rate. We will help you understand how much you can save in case you plan to do the home loan balance transfer and also find the right bank for the same. It is a great gate way to switch from an expensive loan to a lower interest rate. At Loanyantra we have helped many customers save money by helping them find a lender who offers lesser interest rate. To know more about how Loanyantra can help you, sign up with us today or just give  a missed call to 040-71011991. Know more how we manage your loan …

Online Quotes for Fresh Home Loan and Balance Transfer

 

 

 

When Can You Go For A Home Loan Transfer

Home Loans have become the most popular tool to achieve one’s dream of buying a home. With so many banks and HFCs offering tailored home loan solutions, people are now more inclined towards home buying. Banks and HFCs have home loan eligibility calculator that will help you assess how much loan banks will give you and what will be your EMI. 

Home Loan Transfer 

Balance transfer, home loan refinancing are interchangeably used with Home Loan Transfer. It helps the borrower to avoid higher interest rates by transferring to another lender which offers lower interest rates. Borrowers usually prefer this option to reduce the burden of interest rate and EMI. The good news is that all the banks and many HFCs in India offer the facility of home loan transfer.

Do You Know!

Although Home Loan Transfer appears to be a lucrative scheme yet one needs to try cost-benefit analysis before opting for a balance transfer.

Firstly, to avail the option of Home Loan Transfer, you need to be in the good books of the bank, make sure that you pay your EMIs regularly.

Secondly, balance transfer decision depends on the difference between interest rate offered by the two banks (one from where you have taken the loan and second from the bank where you wish to transfer your home loan).

Last but not the least, the outstanding amount of the home loan and the tenure left is also an important factor to consider before going for a Home Loan Transfer. Because, it is not a good deal if unpaid loan amount and tenure both are low. Though there are no prepayment charges levied, but while transferring the loan, calculate for the processing fees. It is calculated on the outstanding loan amount, usually, the maximum is Rs. 8,000.

home-loan-transfer_loanyantra-com
Calculate Before You Go For A Home Loan Transfer

Always calculate. For example, if 50 lac is outstanding loan amount and calculate-homeloan-transfer_loanyantra-comyour bank charges interest rate of 12 % then you have to pay a total of Rs 58, 01,513 as interest and you choose home loan transfer option to another bank offering interest rate of 11.5% for a time period of 15 years then the interest that you have to pay comes to be 55, 13,708 which means you save 2.87 lac.

This is a substantial amount and even if your bank levies a processing fee for home loan transfer, your saving is on a higher side. So,you can go ahead with balance transfer option.  

An important note which banks consider before lending is your credit score. Always check your credit score before applying for a balance transfer. It is important that your credit health score is good and you have all your bills cleared. 

Banks usually charge 0.5% of the loan amount or flat fees of Rs. 5000-10,000 as processing fee for home loan transfer.

How does home loan balance transfer help you?

Advantages of balance transfer includes the following :

  • It lowers the monthly installment
  • You can save on your interest and use for an important reason.
  • Makes your home loan more affordable
  • Banks and HFCs also offer customized solution that will match your requirement
Home Loan Transfer Process
  • Submit a request form to your current bank. The application also asks for the name of the new bank where you will be transferring the loan.
  • After this, the bank will look into your application and will issue an NOC (No Objection Certificate) that mentions outstanding loan amount.
  • This NOC is then submitted to the new lender and the new bank will study your credit history.
  • CIBIL score should be 700 points to get a loan. Once bank approves your application, all the property documents and other documents like ID proof, ITR etc. are transferred to the new bank.
  • Voila!!! You now have your home loan at a better interest rate and you are ready to smile even bigger now.

Our Role: LoanYantra is an unbiased platform where we offer you the best options pertaining to a home loan. Our home loan transfer service will help you find the right financial institution which will lessen your burden of home loan repayment. Moreover, we have up-to-the-minute information related to lenders and interest rate changes in particular.

Not only availing home loan transfer through loanyantra will make the process easier, but also we will keep a track of your interest rate till you close the loan and help you reduce it whenever possible which helps in saving on the home loan.

Talk to us and let us know your requirement about home loan transfer to serve you better.

What is Re-financing?

Refinancing

If a borrower wants to have a change of the rules/terms or interest rate or payment period of the existing lender, he opts for a new lender. This is called as refinance. In a refinanced loan, the old loan is paid off with the new loan, and the old terms are replaced with new terms.

The concept of Refinance:

Many times when the home loan borrowers get overburdened with the interest rates of the bank, they decide to move to another bank offering better interest rates.

For example last year, RBI had slashed down the rate of interest for home loan borrowers. Banks like HDFC and SBI had slashed the interest rates by .15% in their lending rate but many banks were not willing to offer this leverage to their existing customers; but, the new home loan borrowers can avail this sliced interest rates.

Under such circumstances, the borrower might prefer for a refinance, to enjoy the benefits of the new customer.

The following information will be checked when you apply for refinance:

  • Your credit score and payment history.
  • Your income and employment history.
  • Your assets (stock, retirements and savings accounts).
  • An appraisal to determine the current value of your home.

refinance_loanyantra.com

Types of Refinance

Considering the Indian market scenario, here is the classification of refinancing loans:

  • Rate and Term:  This is the most common type of refinance. Here you can replace the existing loan with a new one with new interest rate, new timeline (optional) and new terms.
  • Cash Out: In case you are willing to mortgage a large amount, then cash out is a good option. With cash-out refinancing, you refinance your mortgage for more than you currently owe, then pocket the difference. Be aware where and how you spend the extra amount.
  • Cash In:  A cash-in refinance is the opposite of a cash-out refinance. When you execute a cash-in refinance, you bring money and pay the new lender and lower the loan amount, either to qualify for the loan or to retire fast from the loan.
  • Short Refinance: . Here your existing bank may agree to pay off(refinance) your existing loan by replacing it with a new one, making it more cost effective for the borrower. But this might hurt your credit score.
  • No-Closing Cost: Here you can get a new loan after paying upfront fees of considerable amount. But make sure that you only pick up this option when your existing interest rate is lower than the present interest rate by at least 1.5%

Factors you should consider before refinancing your home loan :

  • Interest rates – Never ignore this factor while you plan for refinancing your existing home loan. It is advisable that you should search in a number of banks to make a comparative analysis of the interest rates so that you can find out which bank offers the best rates.
  • Processing charge: Getting your loan refinanced from another bank may require the bank to process your application which makes you liable to pay a processing fee which could be between .5% to 1% (depending on the bank you are opting) and hence, we suggest that you should always compare the savings you make while opting another bank. If the saving amount is significant go ahead with refinancing.
  • Tenure of the loan – Tenure and EMI are inversely related to each other, if you want a lesser tenure go for higher EMI and vice versa. Few banks do not agree on reducing the loan tenure, under such situations, no wonder you might opt for a refinance, provided you also have a lesser interest rate when compared to your existing lender’s.
  • Be calculative while planning to refinance. It’s not mandatory that refinance will always reap benefits to you and hence, you need to meticulously calculate the amount you will save while applying for refinancing. Different banks have different exit policies and penalties; some might go up to 4% of loan amount, thus, calculate the amount and then go ahead with refinancing.

Advantages of Refinancing / Reasons for Refinancing :

  • It lowers the monthly payment as you opt for a lower interest rate.
  • It makes it easy for you to plan and pay off your loan if you refinance your new home loan from floating to fixed interest rate, as you have a planned EMI.
  • Consolidation of debts for, there will be a reduced EMI.
  • Change of maturity of the loan. Refinance is the best only if you opt for a lower tenure at a lower interest rate.

Ask yourself before you go for Refinancing : 

Before you contact a refinance lender, make sure refinancing makes sense for you. Ask yourself these questions:

  • Is there a prepayment penalty on my current mortgage?
    Though the RBI had removed the pre-payment charges, the banks and NBFCs still ask for a penalty if the loan amount crosses certain limit. So, find out if you will be charged a “prepayment penalty.” The amount varies, but it can add up to several months’ worth of interest payments. Ask your lender.
  • What are the costs of the new mortgage?
    Lenders almost always charge fees for taking out a new loan. These can add up depending on the size of the loan. The charges could include application fees, insurance fees, plus title search, insurance and legal costs. However, many of these fees are negotiable and are different from lender to lender. Make sure to shop around and compare all associated costs and fees of your refinance.
  • Will my tax savings be reduced?
    If you claim mortgage interest on your tax return, refinancing to a lower rate will mean that you’ll have less mortgage interest to deduct. That means you might have to check with your tax adviser to see if your overall savings will be increased if you refinance.

Our role: Loanyantra is a complete solution guide to the home loans existing in India. We are the first real-time loan monitoring system that work dynamically as the market changes. Our continuous monitoring and market analysis always keep you posted on the latest development and changes in the home loan market and your loan status. Apart from loan management, we work on refinancing and balance transfer as well. Our sole objective is to make sure that all the customers of Loanyantra are able to close their loan easier and faster.  

Know more on how to add a co-borrower while you refinance your home.

How to add a co-borrower when you refinance a home?

Know more about cost of switching home loan from one lender to another

Cost of switching home loans to new lenders?