Ultimate Guide to Home Loan Balance Transfer - Finserv Markets

1. Ultimate Guide To Home Loan Balance Transfer – Finserv Markets What is Home Loan Balance Transfer? Home Loan Balance Transfer is a procedure in which you transfer your existing home loan from one bank or financial institution to another bank or NBFC. This facility allows you to move conveniently from a higher interest rate home loan to lower interest rate home loan. However this is not the only reason why people opt for Home Loan Balance Transfer What are the Benefits Of Home Loan Balance Transfer? Here are a few beneficial features of a Finserv Markets home loan balance transfer: – Lower home loan rate of interest Affordable with No hidden fees/charges Special rate of interest for women applicants Easy customized repayment options to fit your financial situations Easy online access to take care of your account Prepayment options available Home service for your convenience Loan Top Up Facility Before you go in for a balance transfer of your home loan, it is very important to check for any penalties applied against prepayment to your existing lender. Some lenders may charge prepayment penalties between 2% and 5% of the outstanding balance. Another thing to keep in mind is that the new lender may also charge processing fees, which may be between 0.5% and 1% of the borrowed amount as well. So, it is always advisable to negotiate with the new lender to try and waive off any processing fees in order to make the balance transfer more reasonable and cost-effective for you. Eligibility Criteria For Home Loan Balance Transfer: You Must be a Citizen Of India You Must be Salaried Individual with at least 3 years of experience Salaried Individual Between the age of 23 – 62 Home Loan amount you can apply for Min – 10 Lakhs and max upto 3.5 crore Documents Required For Home Loan Balance Transfer: KYC Documents Address Proof

2. Identity Proof – Aadhar/Driving License/Passport or Pancard Form 16 Or Your Latest Salalry Slip 3 Months Bank Statement Why Should You Apply For a Home Loan Balance Transfer? Obtaining a home loan from a reliable lender is very important. You can look for various options for balance transfer available in the market or simply contact Finserv Markets to find out more about home loan balance transfer options. Once you have all the information you need, you can choose to transfer your home loan in order to get lower equated monthly installments (EMIs) at a reduced rate of interest. How To Apply For a Home Loan Balance Transfer? a. Once you get all the necessary documents in hand, you can proceed to apply for a balance transfer with the new loan provider b. The application process will differ from bank to bank. However, the basic application steps remain the same. For instance, to apply for a Bajaj Finserv home loan transfer all you have to do is follow these simple steps- 1) Enter your personal and employment details 2) Estimating the amount that you can borrow for your balance transfer 3) Mention requirement and property details 4) Unlock your final loan eligibility amount 5) Verification and Disbursement of the money in your account Home Loan Balance Transfer Procedure: In case of home loans, the amount borrowed is very high as compared to other type of loans. As the loan amount is high, the tenure given to repay the loan is also long as compared to that of a personal loan. However, the interest rates of home loans have seen a considerable change over a period of time. Hence, the old customers might see a difference in the interest rates provided to the new customers by the lenders. If you feel that you can get a better interest rate on your existing home loan with another loan provider, you can transfer your home loan balance to that bank or financial institute.

3. A home loan balance transfer is also called as refinancing of a home loan. You can refinance your home loan in two ways- 1. Apply for a new loan with the same loan provider. 2. Apply for a new loan with another loan provider who is offering more affordable interest rates Generally, people prefer applying for a balance transfer with a new loan provider as the number of benefits availed with a new provider are more in terms of deciding the interest rate, loan tenure and the EMI amount. Once you apply for a balance transfer, all your existing home loan repayments will be settled by the new loan provider, while the old account with the previous provider will be closed. The home loan balance transfer process can be carried out in 5 steps- Step 1: Carry out a cost-benefit analysis for your home loan balance transfer Step 2: Get NOC from your current loan provider Step 3: Apply for a balance transfer with the new loan provider Step 4: Settlement of your existing home loan by the new loan provider Step 5: Repayment of the new loan Let us discuss each of these steps in detail. Carrying out a Cost-Benefit Analysis for Home Loan Balance Transfer a. The whole purpose of a home loan balance transfer is that you profit from the revised interest rates. In case you have agreed for a fixed interest on your existing home loan, your loan provider might charge a prepayment penalty for settling your loan balance early. Make sure you consider these charges before applying for a new loan with another bank/financial institute. b. In case your home loan is taken on a floating interest rate, then transferring your home loan balance can prove profitable. c. While interest rates are the major reasons for a balance transfer, make sure you also consider other factors such as loan tenure, repayment options, processing fees, etc. before applying for a new loan. You can use the Bajaj Finserv EMI calculator to estimate the amount that you will have to pay on your new loan. d. Only when you analyze all these cost-benefit values, should you proceed with your home loan balance transfer.

4. Get NOC from your current loan provider a. Once you decide on transferring the balance on your existing home loan, search for a loan provider that offers affordable interest rates for loan refinancing. b. Once you make your choice on the loan provider, you will have to get a NOC (no-objection certificate) from your current loan provider for initiating the home loan balance transfer process. c. Along with the NOC, you will also need to get documents like foreclosure letter, proof of past EMI payment history, copy of loan agreement papers with the loan provider, etc. d. Make sure that you submit a request for getting these documents at the earliest, as the time taken to get these documents may take anywhere between 1-3 weeks. Apply for a Balance Transfer with the New Loan Provider a. Once you get all the necessary documents in hand, you can proceed to apply for a balance transfer with the new loan provider b. The application process will differ from bank to bank. However, the basic application steps remain the same. For instance, to apply for a Bajaj Finserv home loan transfer all you have to do is follow these simple steps- 1) Enter your personal and employment details 2) Estimating the amount that you can borrow for your balance transfer 3) Mention requirement and property details 4) Unlock your final loan eligibility amount 5) Verification and Disbursement of the money in your account Settlement of Your Existing Home Loan by the New Loan Provider a. Once you complete the application process, the new loan provider will evaluate your application and decide on your eligibility. b. Factors such as the required amount for home loan balance settlement, your past credit history, and present financial condition will be taken into consideration while determining your home loan balance transfer eligibility. c. Once you pass the eligibility criteria, the loan amount would be credited to your account. d. You can repay the entire outstanding balance of your existing home loan with the new loan amount credited in your account

5. Repayment of the new loan a. While the existing debt on your home loan is cleared because of the balance transfer, do not forget that you still have to repay your new loan. b. However, since the amount and interest rates on the new loan are chosen by keeping your repayment convenience in mind, paying off the EMIs on the new loan should not be an issue. Conclusion There are many other reasons for shifting your Home Loan to Finserv Markets. Some of them include service issues with your existing lender or unwillingness to re-negotiate terms, etcetera. However, before you make a decision to transfer your balance, make sure you take a look at all these aspects in order to make an informed decision. You can now easily avail a Bajaj Finserv Home Loan Balance Transfer facility on Finserv Markets and take advantage of a plethora of benefits like fast application processing, quick dispersal and many more! So why wait? Apply for a Home Loan Balance Transfer with us, today!