Repay Right Calculator
Home Loan Balance Transfer
A home loan balance transfer is a convenient way that allows borrowers to transfer their existing home loan outstanding amount to another lender. This is typically done to enjoy benefits like lower rates of interest, flexible repayment schedules, improved loan terms and better customer care service. An online home loan balance transfer is an easy procedure that helps borrowers reduce their monthly EMI payments.
What are Home Loan Transfer Interest Rates?
Home loan balance transfer interest rate is the first thing that motivates an existing borrower to make this shift from one lender to another. The purpose is to offer substantial savings on monthly EMIs and total interest paid over the loan tenure to the borrower. Hence, the best home loan balance transfer rates are generally lower than the original loan rates.
How to calculate a Home Loan Balance Transfer?
Borrowers can easily calculate a home loan balance transfer by first determining the outstanding principal on their current home loan. Then, compare the interest rates offered by other lenders. Up next, they need to calculate the new EMI based on the new rates, and also add the processing fee and other legal charges or penalties for early repayment. Alternatively, you may choose a much easier way of using an online home loan balance transfer calculator and get the precise figures for the same.
What are the Documents Required for Home Loan Balance Transfer?
Mentioned below is the list of documents for home loan balance transfer:
- Lower Interest Rates: The main benefit of a home loan balance transfer is reduced interest rates, lowering monthly EMIs and overall interest payments.
- Reduced EMIs: Customers usually opt for home loan balance transfer schemes to reduce their monthly EMIs due to lower interest rates.
- Better Loan Terms: Balance transfer housing loans offer benefits like flexible repayment options and tenure extensions.
- Top-Up Loan: A home loan transfer scheme allows customers to avail an additional top-up loan for extra funding requirements.
How to Apply for a Home Loan Balance Transfer
The easiest way to proceed with the home loan balance transfer procedure is explained below in a step-by-step manner:
- Visit the BASIC Home Loan official website
- Click the 'Repay Right' from the drop-down menu under 'Calculators'
- Fill up your details to know your savings, and click 'Next'
- You can now see your total savings; proceed ahead by selecting any of the below three options: Saving as per your new ROI, Adjust your tenure or EMI, or Top up. Then, 'APPLY' by filling out the online form.
The BASIC Home Loan team will then reach out to you for further assistance in applying for an SBI Balance Transfer Loan.
What is the Eligibility Criteria for Home Loan Balance Transfer?
Before thinking of switching your outstanding loan amount to a new lender, make sure to go through the home loan balance transfer eligibility criteria. These are general eligibility requirements set by the lenders and we are trying to list them below for your quick reference:
For Salaried Individuals
Age
21 - 65 years
Nationality
Indian Resident
Credit Score
650 and above (preferred)
For Self-Employed Individuals
Age
21 - 65 years
Nationality
Indian Resident
Credit Score
650 and above (preferred)
What are the Documents Required for Home Loan Balance Transfer?
| Proof of Identity |
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| Proof of Address |
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| Proof of Income |
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| Existing Home Loan Documents |
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What are the Home Loan Balance Transfer Housing Charges?
A home loan transfer from one bank to another charges various fees and costs associated with transferring the outstanding balance of a home loan to a new lender. These are generally the processing fee, administrative charges, legal fee, stamp duty, CERSAI charges, and so on. Additionally, there might be foreclosure charges levied by the existing lender for an early repayment of the loan. It is crucial for borrowers to know these costs beforehand to make an informed decision.
Listed below are the charges for home loan transfer of different banks and NBFCs:
| Bank/NBFC | Home Loan Balance Transfer Interest Rate | Processing Fee |
|---|---|---|
| SBI | 8.50% p.a. onwards | Nil |
| HDFC Bank | 8.70% p.a. onwards | Up to 1.50% of the loan amount or Rs. 4,500 (The higher out of the two will be applicable) |
| ICICI Bank | 8.75% p.a. onwards | Up to 2.00% of the principal loan amount |
| Axis Bank | 8.75% p.a. - 13.30% p.a. | Up to 1% of the loan amount (Minimum of Rs. 10,000) |
| Kotak Mahindra Bank | 8.75% p.a. onwards | Up to 1% of the principal loan amount + taxes |
| Bank of Baroda | 8.40% p.a. onwards | Rs. 8,500 (Upfront) |
| Federal Bank | 8.80% p.a. onwards | 0.50% of the loan amount (maximum of Rs. 7,500) |
| Bajaj Housing Finance | 8.70% p.a. onwards | Up to 4% of the loan amount + GST |
| LIC Housing Finance | 8.50% p.a. onwards | 0.25% of the loan amount + GST (minimum of Rs.5,000, maximum of Rs. 50,000) |
| Aditya Birla Housing Finance | 8.60% p.a. onwards | Up to 1% of the loan amount |
| Cholamandalam Housing Finance | 9.00% p.a. onwards | Rs. 5,000 (including GST) |
| Tata Capital Housing Finance | 8.75% p.a. onwards | 0.50% of the loan amount + GST |
How to Transfer a Home Loan from One Bank to Another?
1
Carefully go through the interest rates, processing fees, and terms and conditions of the new lender
2
Get the consent letter from the existing lender along with the outstanding loan amount
3
Apply for the balance transfer from BASIC Home Loan official website and fill the online form
4
After submitting your application form, you can see your loan offer
5
Pay the fees and upload the KYC documents required for a home loan balance transfer with top-up scheme
6
After submitting your application, wait for the approval
How to Transfer a Home Loan from One Bank to Another?
Carefully go through the interest rates, processing fees, and terms and conditions of the new lender
Get the consent letter from the existing lender along with the outstanding loan amount
Apply for the balance transfer from BASIC Home Loan official website and fill the online form
After submitting your application form, you can see your loan offer
Pay the fees and upload the KYC documents required for a home loan balance transfer with top-up scheme
After submitting your application, wait for the approval
When Must You Avail the Home Loan Balance Transfer?
- When the market interest rates drop significantly compared to your current loan rate
- Early in the loan tenure when the interest component of your EMIs is higher
- When you come across better loan offers as compared to your existing lender