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.

Real time FAQs by Home Loan Customers

Home loan is with us half of our life time. We understand that. We take a little of your time to clear all your doubts.

Here are the FAQs regarding home loan which make you understand the concept better.

questions-regarding-home-loan_loanyantra1. What is KYC?

KYC means “Know Your Customer”. As the name suggests, banks or institutes collect the identity of the customers to know the uniqueness. Usually the financial institutes, collect these only to ensure they don’t give way for the fraud.

2. Why is a co applicant needed? And who can be a co applicant ?

Though a co applicant is not mandatory with any home loan, it is needed to increase the eligibility of the applicant. Anyone with direct blood relation can be a co applicant. For example, spouse, brother, son, daughter, father, mother.

3. How to transfer your property without being in the place in person?

If you are not in a position to do it yourself due to various reasons, you can give the Special powers to the person by making a deed of Special Power of Attorney.

Firstly, you should draft the deed with grantor (your) details, attorney details, reasons for giving power, the act to be performed, date and signatures of grantor and two witnesses.

The deed should be made on a Stamp paper of appropriate value according to the Rules of the State where it is to be registered.

The person to whom you send the deed should get it registered in the appropriate Government office as per the State rules. It can be either the Sub-Registrar office or the Sub -Divisional Magistrate office.

4. Can I send soft copies of my documents ?

Actually, all the documents need to be attested by the applicant and co applicant, if any. So, sending soft copies cannot be a good idea. If NRIs want to apply for home loan without coming to India, then the NRIs need to visit the embassy or notarized authorities to verify the documents and get the stamping done.

5. What is Processing Fee cheque ? Why do we need to pay ?

Processing Fee is paid to the bank before the loan application is approved. Which means, the fee for all the needs to verify the authenticity. Processing fee can be paid by cheque. The processing fee usually covers the legal verification charges, property and document verification charges.

Sometimes, there will be a zero processing fee period by the banks. So, during that period, the legal charges are charged separately.

6. What kinds of verification is carried while processing home loan ?

Initially, when the customer approaches the lender for a loan and provides his information, the lender to check the accuracy of information, conducts FI check. To make FI report, FI agents come to your office, resident and property for the basic confirmation.

After this, the detailed verification continues in two ways. Legal and technical. Legal check involves verifying Title Deeds, No Objection Certificates of authorities and other ownership papers of the lender’s property.

And technical check is important to estimate the market value of the property. So, the technical valuation is done to know the maintenance, the age of property, level of construction, square feet and built up area, quality of construction, required legal clearances, the locality and special comments and the market value of the property.

However, days have changed and the things have become simpler. If your property is listed in the bank’s approved project’s list, then the above process becomes simpler.

7. What is Personal Discussion (PD)?

Personal Discussion (PD) is a detailed and personal discussion held for checking the credibility of business officials.

Usually, the credit officer meets the business official in his office to have a detailed discussion about the ways of repayment of loan and methods of repayment by proving his business income.

8. How many days will it take to sanction the loan?

Usually, the loan sanction period varies from lender to lender. Nationalized banks take around a month minimum for disbursal. Whereas the private banks and the financial institutes might take a month maximum.

9. What is a sanction letter?

Once, the loan application is verified, the lender sends a sanction letter, accepting for the loan disbursal. Which shows all the details about the applicant and the loan applied for and for which property and what kind of loan, what is the tenure and the EMI. Suggest a complete check of all the details before the disbursement.

10. What is the validity of the sanction letter?

The validity of the home loan sanction letter varies from three to six months.

Once the sanction letter is expired, the borrower should again start with the initial step for borrowing the loan.

11. What is loan documentation?

Loan documentation varies from lender to lender, from property to property and from borrower to borrower. The usual documents required are personal documents say address proof, identity proof, pay slips, bank account statements, passport size photographs. The property documents say property’s title deed, no objection certificate, etc.  With these documents, the verification is processed before the sanction of home loan.

12. What are security cheques?

The security cheques are taken from the customer in the form of blank cheques (without signature on the cheque). The bank takes it and uses it only the EMIs are not payed. And these will be returned to you along with home documents, when you totally payback the loan.

13. What is home loan insurance and how it will cover?

The home loan insurance secures your home loan pay and in case of unseen emergencies the home loan pay is not stopped, instead it is covered and the dream home remains to your family.

The lenders either have exclusive schemes or tie-ups with insurance companies.

Usually, the insurance plans include cover for the home, properties in the home and cover for the life of the borrower too. It depends on the scheme the borrower opts.

14. What is EMI and P-EMI ?

EMI is Equated Monthly Installment.  The repayment of loan every month after the loan amount disbursal is EMI. For under construction properties, the loan amount is partially disbursed according to the construction progress. If the EMI is paid on that loan amount, then it is called PEMI.

Full EMI Vs Pre EMI

15. What is the cycle for EMI or PEMI?

EMIs and PEMIs are paid every month. The date can be fixed by the loan applicant, either the starting days or ending days of month. Usually, bank asks for a date in the first week of the month. This is the cycle for every month and every year till the repayment of loan.

16. How many times I can pay part payments?

Part payments can be paid either quarterly, half-yearly or annually.

17. Is there any penalty for part payments?

No, there is no penalty for part payments.

18. Can I pay part payments through online?

It depends on the bank. But many accept the part payment through NEFT (National Electronic Funds Transfer). In case you want to make part payment on your Home Loan Account through NEFT, you need to visit your bank’s nearest branch.

The Service Request number received during branch visit must be mentioned in the remarks column in the NEFT form while making part prepayment through NEFT.

The transactions with invalid request numbers will be rejected. NEFT is a nation-wide payment system facilitating one-to-one funds transfer. Individuals can electronically transfer funds across the country from one bank to another bank participating in the Scheme.

19. How to get my amortization schedule ?

Visit your nearest branch and ask for amortization schedule. The banks usually charge a minimal amount. Though there are many amortization calculators online, once you should tally the bank’s schedule and the online calculator’s schedule. It is good to know how the amount is divided between the two components interest and principal.


Home Loan Interest Rates

What is Home Loan Interest Rate?

Home Loans have become the best medium to buy homes. Banks and NBFCs offer various home loan schemes and alluring interest rates that attract the home buyer. The key deciding factor for a customer to avail home loan from a particular financial institution is determined by the interest rate. The interest rate is charged on the principal loan amount. 

What determines interest rates on your Home Loan?

It is the bank that decides their lending rates. This depends on their cost of funds and NIM or Net Interest Margin which the banks need to earn to earn a profit and cover their operation cost.

An important point to note here is that home loans to salaried employees are offered at a lower rate as compared to those who are working in the unorganized sector; the prime reason for this is the stability of income of salaried employees.

The home loan interest rates calculation by the nationalized banks is presently based on MCLR or Marginal Cost of Lending Rate method. To this rate, the spread is added and then the final interest rate is mentioned to the customers or borrowers. And the NBFCs use Prime Lending Rate (PLR) calculation method.

Types of Home Loan Interest Rates

There are two kinds of home loan interest rates:

  • Fixed Interest Rate Loan-   This rate of interest remains fixed and the borrower has to pay a fixed EMI during the home loan tenure. The market fluctuations don’t impact the home loan rate. A major point of concern when it comes to fixed home loan rates is they are 1-2.5% higher than the floating rate of interest. If a borrower has fixed home loan then he/she doesn’t get the benefit if the home loan rates go down. Their EMI remains unaffected by it.
  • Floating Interest Rate Loan–  As the name indicates, floating rate loans have interest rates that change with the market condition. The are highly susceptible to market fluctuations. If the base rate changes, the floating rate also gets changed along with it. They are usually cheaper than the fixed rates but being highly influenced by the market condition they may vary as the RBI changes the rates.

Factors affecting home loan  
interest rate

  •    home-loan-interest-rates_loanyantra-comIncome
  •    Credit score
  •    Location of the property
  •    Loan amount
  •    Type of loan
  •    Loan tenure
  •    Type of interest rate
  •    Employment type
  •    On-going promo offers

All the banks and HFCs offer lucrative and competitive interest rate on the home loan, here is

The list of banks and HFCs and their interest rate.  

Banks and HFCs associated with Loanyantra Home Loan Interest Rate Range
SBI 8.50% – 9.10%
ICICI 8.65% – 10.10%
HDFC 8.65% – 9.25%
DHFL 9.00% – 10.00%
Indiabulls 8.65% – 12.25%
Standard Charted Bank 9.25% – 9.4%
Aditya Birla Housing Finance 8.65% -8.89%
IDBI 9.35%
Axis 9.15%-9.35%
CITI 8.8%- 9.55%
HSBC 8.85%-10.4%
Banks and HFCs not associated with Loanyantra Interest Rate
PNB Housing Finance 8.9% – 9.6%
LIC Housing Finance 8.5%
Kotak Bank 8.75%
Edelweiss 10.5%-10.9%
Reliance Capital 10%-11.75%
Bank of Baroda 9.6%
Indian Bank 9.65%
Dena Bank 9.6% – 9.85%
Bank of India 8.6% – 8.75%
Federal Bank 9.6%
Union Bank of India 8.8%
Allahabad Bank 8.7%-9.25%
Bank of India 8.65%-8.7%
Bank of Maharashtra 8.75% – 8.85%
Canara Bank 9.15%-9.70%

Discount on home loan interest rates by LOANYANTRA

Loanyantra is a one stop shop for all kind of home loan services. You process your loan with us and get 0.10% discount on the interest rate for one year. Also, manage your loan by the services provided by loanyantra. Get door-step service for the collection of documents and submitting them. Get updates about the process till disbursal. Our first priority is to understand our customer profile and then suggest them the best home loan which will match their requirement perfectly.  Get connected with us today to know more about home loans.

Home Loan Life Cycle. Know How Loanyantra Works For Your Home Loan

We believe in Organic Management, the complete and the structured. Every step is taken with attention to close your loan at the earliest.

Feel the difference as we take you to the tour, “How We Work”.

To make our and your work convenient, we place the customers in three phases.
1. Introductory Phase
2. Saving Phase / Servicing Phase
3. Achievement Phase.

Orgnaic Home Loans 1

Introductory Phase :

Enter your details and apply for a new home loan or a balance transfer. Get eligible for the bidding by the leading banks in the industry.

Know the status updates about the sanction of your loan. Utilize our Live Support and Chat with the Banker and our representative.

Quick disbursal of your loan with a minimum of 0.10% discount on the ROI, for an year.

Saving Phase :

Congrats, you are our priority customer now. All your details are in our database / into our algorithm.
Our work begins where everybody else’s end!!!

We track your ROI constantly and send you alerts about part payments and interest rates of your bank and other banks as well.

Get alerts under the following subject lines.

a)Get stuck to the lowest interest rates and save the maximum.
b)Don’t let your money sit unattended. Learn with us how to reduce the tenure of your loan with your hard-earned savings.
c)Be the first one to know about the change in repo rates and the banks spread.

Want to follow our alerts? Just click on the suggestion link. We take you along the process.

Get into this step and refer more of your friends to save more.

Achievement Phase :

You finally, reach this stage before your estimated tenure.
Following the procedure to close the home loan is also equally important.

Apply for the loan closure. Doorstep service assured.

Get updated with the process. We get all your documents back in your hand.

Relax in your home!! You are done with your home loan.

Orgnaic Home Loans

Our team works like a clock, to maintain your ROI at the lowest, every time. Loan Rate Shield guards as a screen and sends alerts and tips how you can close your loan before the estimated tenure.

Stay connected, all time, with us while we work on your loan life cycle.