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.