What is the procedure for Home loan balance transfer?

The process of home loan balance transfer starts with interest saving calculation. You can use a balance transfer calculator for this purpose. After that, you can perform market research to select a financial institution that offers the most competitive rate of interest and then start an application process.

Here is a step-by-step guide for this purpose –

Step 1: Approach a new lender of choice for home loan refinance and initiate such a process.

Step 2: Get in touch with your current lender to get a NOC and start the transfer of property papers.

Step 3: Complete the application process and other formalities with the new lender, finalise the loan terms.

Step 4: Foreclose the loan with your current lender, and complete the remaining formalities.

Step 5: Start further repayment with your new lender.

The availability of online processes has made this process simple; however, keeping the required documents handy can further expedite this process. Here is a list –

• NOC from the previous lender.

• Certificate of foreclosure.

• Previous home loan repayment statement.

• Property documents.

• KYC details.

• Income proof.

• Bank account statement.

Home loan balance transfer allows individuals to opt for a loan to save substantially on repayment. Typically, the idea behind opting for this facility is to shift to a lower rate of interest. Along with that, better loan repayment options, top-up loan are some of the notable highlights of this process. However, you should time this transfer properly to make the most of its benefits.