Home Loan Takeover

Home loan takeover

Home loans are a good way to buy a home especially these days when banks and HFCs are offering enticing policies and luring interest rates. Amidst all this, now banks are also offering you a new way to reduce the burden of EMIs and home loan tenure, I am talking about home loan takeover.

What is home loan takeover?

Home loan takeover is similar to home loan transfer wherein you transfer you home loan to another bank or financial institution which is offering you better interest rates that will be helpful in lowering the EMI.

A home loan can be taken over from any of the following financial institutions:

  • Private and foreign banks
  • HFCs or Housing Finance Companies
  • SCBs or Scheduled Commercial Banks

Home loan takeover is an easy procedure but there are certain eligibility criteria that need to be fulfilled before applying for home loan takeover:

  • The borrower should fulfil the eligibility criteria to avail home loan, every bank has different parameters to approve the home loan; a similar set of criteria has been defined for home loan takeover.
  • As a borrower make sure that you have paid your monthly EMIs regularly, this creates a good credit history and increase your probability of getting approval for home loan takeover.
  • Valid documents supporting your ID proof, address proof, purchase of property, regular payment of EMIs and other documents which your bank or HFC will ask for .

Another question that pops up in the mind of the borrower is whether they can take a higher loan amount in case of home loan take over and whether the repayment period can be extended? The answer to this question is simple, many banks and other financial institutions offer this facility. But this is done on a case to case basis. For example, if as a borrower you have regularly paid your EMIs.  Have a good credit score your bank may allow you to take a higher loan amount over the existing home loan amount take from other bank or HFC. In the same way, your loan period may be extended

Procedure for home loan takeover:

  • The borrower should submit an application to his/her bank asking for recipes of the home loan amount, title deeds and other securities directly to your lending bank.
  • The borrower must also submit the information. Regarding the outstanding loan amount the financing Bank that they have created an equitable mortgage over the property.
  • Apart from the above-mentioned documents, the statement of account for the entire period of repayment of the loan amount or for the last 10-12 months as demanded  by the bank has to be submitted.
  • A confirmation letter from the financing bank that they are offering the takeover loan amount.

The above guidelines are generic; there may be some alterations in terms of eligibility criteria and documentation which varies from bank to bank.

Our Role: Loanyantra is an online portal for those who are looking for hassle-free home loan approval, we also understand other allied services of home loan like home loan takeover, top-up home loan, refinancing etc. Our able staff and our association with various financial institutions across the nation will help you find the best match for your home loan. To know more about it connects with us today.


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.

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.