Sign up for a home loan balance transfer plan for a period of up to 30 years and calculate your EMI with lowest interest rates offered at 6.65% p.a. The processing fee applicable ranges from 0.25% to 2% of the loan amount.
|Interest Rate||6.65% p.a.|
|Processing Fee||0.25% to 2%|
|Loan Tenure||Up to 30 years|
|Lowest EMI (per lakh)||Rs.642|
Note: Interest rates starting from 6.70% p.a. onwards.
The lowest EMI is calculated by using home loan calculator, considering a loan amount of Rs.1 lakh for a period of 30 years with the interest rate and processing fee being 6.70% and 0.25% p.a. respectively.
|Banks||Transfer Rates||Current RLLR|
|HDFC Ltd||6.75% p.a.||16.05% (RPLR)|
|LIC Housing Finance Limited||6.90% p.a.||14.70% (LHPLR)|
|Axis Bank||6.90% p.a.||4.00% (Repo Rate)|
|Bank of Baroda||6.75% p.a.||6.75%|
|Canara Bank||6.90% p.a.||6.90%|
|Union Bank of India||6.80% p.a.||6.80%|
|Kotak Mahindra Bank||6.65% p.a.||–|
|United Bank of India||6.95% p.a.||6.80%|
|IDFC First Bank||6.90% p.a.||–|
|Federal Bank||7.65% p.a.||9.63%|
|Karur Vysya Bank||7.35% p.a.||7.35%|
|Dhanalakshmi Bank||7.85% p.a.||7.00%|
|Tamilnad Mercantile Bank||8.25% p.a.||8.25%|
Note: These are just starting rates that go above the rates mentioned depending on various factors and the final rate offered is at the sole discretion of the concerned lender.
Home Loan Balance Transfer Calculator
With technology inculcated into finance, one can effortlessly estimate the details and benefits he/she would receive from transferring a home loan to another bank. One simply needs to enter the basic details of the existing loan like outstanding loan amount, interest rate, tenure, etc. By entering these details, the calculator would be able to estimate the savings you would incur by transferring your balance to another bank.
How to Calculate EMI on Home Loan Balance Transfer?
The amount of money you can save will depend on the following factors:
- Principal amount of your outstanding home loan
- Current EMI paid per month
- The current tenure of the outstanding loan (in months)
- Rate of interest provided by the new lender to which the loan will be transferredRequired tenure in months of the new balance transfer home loan
For example, if the outstanding principal amount is Rs.40,00,000, the current EMI paid per month is Rs.40,000, the tenure of the current loan is 240 months (20 years), the interest rate offered by the new lender for balance transfer loan is 8.85% and, if the required tenure for the new loan is 240 months (20 years), you will save an amount of Rs.10,55,040. Your monthly EMI will reduce from Rs.40,000 to Rs.35,604.
The total amount to be paid will reduce from Rs.96,00,000 to Rs.85,44,960. If you opt for a shorter tenure, you may not save a lot of money but you can pay off the loan faster with while paying a similar amount of EMI as your existing loan.
How to Transfer Home Loan from One Bank to Another?
- Step 1: Go to the concerned bank’s website.
- Step 2: Check all the terms and conditions along with the interest rate and processing fee.
- Step 3: If you are satisfied with the scheme, apply for balance transfer.
- Step 4: You will need to fill in the required fields, including your name, property type, tenure of the existing loan, and the bank’s name, among others.
- Step 5: Upon completion, you will be able to view your loan offer.
- Step 6: Pay all the necessary fees and upload your documents.
- Step 7: Complete your application and wait for the approval.
Process to Transfer your Home Loan
- Your home loan can be refinanced by following the steps mentioned below:
- Obtain all the necessary documents required to transfer your home loan balance from your current lender.
- Obtain a consenting letter from the existing bank along with the outstanding loan amount.
- Provide these documents to the new bank that you wish to transfer the housing loan balance.
- The new lender will then pay off the balance due to your old lender.
- Subsequently, your old loan account will be closed, meaning all payments towards the loan will have to be paid to the new bank.
- All property documents will then be handed over to the new bank, officially completing the process of transferring your home loan.
What is Home Loan Transfer Eligibility Criteria?
- Age: 23 to 65 years
- Type of employment: Salaried or self-employed
- Nationality: Resident Indians and NRIs
What are the Documents Required for Home Loan Balance Transfer?
- Identity proof
- Address proof
- Documents related to the existing loan
- Last 3 month’s salary slips
- Last 6 months’ bank statements
- Last 3 years’ balance sheet and profit and loss account statements (Self-Employed)
- Passport size photograph
Why you need to Transfer your Home loan?
- The interest rate on your home loan may reduce after refinancing your home loan.
- Either your EMI will reduce and your tenure will remain the same, or your EMI will remain the same and the tenure will become shorter.
- This will make the overall cost of the loan lesser.
When refinancing a home loan, one must always take into consideration the processing charges and balance transfer fees. If the new bank’s interest rate plus these additional charges still prove to be cheaper than the current loan, only then should a customer choose to refinance the loan.
Why and When Must You Avail the Home Loan Balance Transfer?
- One can avail a home loan balance transfer if he/she is paying a higher interest rate towards a loan in a bank that offers a lower interest rate.
- If a bank is unwilling to reduce the interest rate despite the fact that you have a cordial relationship with the organization.
- In the occasion that other bank are offering lower rates of interest.
A home loan balance transfer can be availed 12 – 18 months after faithfully paying off your existing housing loan.
What is the Difference Between Home Loan and Home loan Balance Transfer?
Home loan – A home loan is a loan availed from a bank or other financial institutions in order to purchase a house, land, construct a property or simply to renovate an existing property. A lot of documentation and verification is required to avail a home loan. It also is considerably harder to get a housing loan application approved.
Home loan balance transfer – This is when you transfer an existing home loan from one bank to another. Also known as refinancing, this also helps an applicant avail lower interest rates and better services. There is lesser documentation involved in home loan balance transfer and it easier to attain when compared to a home loan