When it comes to acquiring a new home, one can never be too careful. It is after all, one of the biggest investments that one could make on an asset and apart from the financial gains to be made out of it in future; there is also the question of forming an emotional bond with the place we identify with as a haven of security and where we can finally be with our loved ones. Thankfully, with more and more banks offering good Home Loan interest rates and by making the loan application procedure simpler, it is finally possible for a lot more people to realize their dreams of having a home of their home, rather than living on rent. And if the Home Loan itself was not enough, now many creditors also opt for Home Loan Balance Transfer if they feel they have come across another bank or NBFC that is offering them still lower rates of interest.
Here's How Home Loan Balance Transfer Works
A Home Loan Balance Transfer is usually opted for by the debtor when they want to reduce the amount of their EMIs by moving their outstanding loan balance from one bank to another. For example, you have a loan of Rs 40,000 lakhs from Bank A for 25 year tenure at an interest rate of 10%. After paying the bank dutifully for 5 years, you suddenly come across a bank, Bank B, that is offering Home Loan rates of 8.5%. Naturally, at this rate you would have to pay less EMI and you transfer the outstanding loan balance to Bank B. That is all that is there to it and it helps save a lot of money in the long run.
There are many banks and NBFCs which are offering the option of transferring Home Loan. Bajaj Finserv has helped many to be relieved off the financial burden of paying high rates of interest and their additional benefits are definitely an added advantage. Not only can one move their outstanding loan to Bajaj Finserv, but one also gets additional top- up loans if the need arises, and enjoy the benefits of their special schemes like Flexi Hybrid Home Loan. The top- up loans come without any collateral- yet another advantage for the debtor. They also get 3 EMI holiday and the debtor also has the option to make unlimited pre- payments, with zero foreclosure charges if they happen to clear the entire loan before the stipulated time. They also offer property search services, which means they will also assist in finding the right home for you within your budget if you apply for a Home Loan with them in the first instance.
The only criteria for being eligible for this Home Loan Balance Transfer is that the debtor should have made 12 consecutive EMI payments, without any dues prior to the transfer and the outstanding loan balance must be over Rs 5 lakhs. With the help of the Home Loan Eligibility Calculator and Home Loan Balance Transfer Calculator, one would easily be able to compute the savings that one enjoys after the Home Loan balance transfer as well as determine their top up loan eligibility. One could enjoy the benefits of both flexi interest as well as flexi- term loan with this facility. There are no hidden charges after this and the online account management offers smart solutions of keeping track of the loan balance. Bajaj Finserv clients also get to enjoy customized insurance solutions later.
There are private and government lenders like SBI that also offer Home Loan Balance Transfer. Apart from Banks there are several NBFCs which provide Balance transfer at more reasonable conditions. One could easily opt for a Home Loan from the Banks or NBFC and if they do not meet the criteria of the banks or they could get a loan from the bank and transfer it later to Bajaj Finserv or any other NBFC of their choice if they find that the interest rates are lower, which in most cases they are. The documents required for Home Loan are ID proof, address proof, income proof and IT returns of the past three consecutive years. Thanks to this amazing option, today most people who might have felt impossible having a house of their own, are finally going ahead and fulfilling their dreams.