A Home loan means a amount of money borrowed from bank or any financial institution to purchase a flat or house. It consists of a fixed or variable interest rate and payment plans and terms. A certain rate of interest to be paid with the EMI every month. The property papers are taken as a security by the Bank for the Home Loan. It can also be taken for construction of a house over a piece of land or ready to move-in property by mortgaging the same to the bank. The property can either be commercial or personal in nature.
The amount of loan is decided by Bank on the basis of income of the Borrower and the purchase value as well as market value of the property. The property to be purchased should legally and technically be acceptable for the purpose of creating mortgage.
Balance Transfer as the name suggests is transferring your existing loan from one institution to another.
We keep you informed on the rate you are paying and the best rate available in the market. This is to ensure that our borrower isn’t paying at extra interest.
Why does a borrower transfer the loan?
Better rate of Interest: This is the primary reason for a borrower to opt for a balance transfer of its existing loan. With ‘NIL’ foreclosure charges on all home loans it is economically viable for a borrower to transfer the loan with little effort of completing the documentation.
Top-up Loan: Second biggest reason for balance transfer is requirement of additional funds over and above the existing loan. With few banks offering Top-up loans at home loan rates, it becomes a very attractive option.
Benefits of a balance transfer:
Lower rate: Transferring a loan to a lower rate can result in huge savings for the borrower You can use our balance transfer calculator to check the amount of money you save before you opt for a balance transfer.
No Cost: As be the government directive, no institution can charge a fore closure fees on a loan running on a variable rate. Hence, the cost for a borrower on a balance transfer loan is “NIL”
Top-up at Home loan rates: A lot of banks offer a Top-up loan when you transfer your existing loan with them.The top-up loan by most banks is offered at the same rate that of a home loan. You can check our page on “Balance transfer with Top-up Loan” for further details.
Documentation Required for Balance Transfer:
Apart from the list of documents mentioned under our documentation link, following additional documents are required in a BT case:
Fill in the required fields and know the exact break up of Interest and Principal paid in each EMI on your loan