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A home loan balance transfer is very beneficial if the interest rate provided by your new lender is much lower and if you have a long tenure for your current home loan left. If the interest rates vary mildly or if your loan tenure is going to end soon, then it might not be very advantageous as you will need to pay a processing fee and other small charges, thereby increasing the cost of the home loan balance transfer.
There are many banks that provide home loan balance transfers for customers. This is done to help the customer save on EMIs in the long run.
Some banks providing the lowest interest rates are:
1 HDFC Bank:
• Interest rates begin at just 8.90%*
• Top up loan of up to Rs.50 lakhs is available if needed along with the home loan balance transfer
• There are no hidden charges. It is a very transparent process
• Customised repayment options are available to suit the customer’s needs
• One can avail their services all across India.
2 SBI:
• Interest rates begin at just 8.75*
• There are no hidden charges as it is a very transparent process
• There is no pre-payment penalty
• Interest charges on daily reducing balance is applicable
Interest rates are given to the customer at the discretion of the bank in most of the other cases. The interest rates are generally fixed based on a few factors such as:
1 Employment:
If you have a good income from a reputed company that is listed with the bank you are transferring your home loan to, then the interest rates are generally much lower. This is because your leader will judge your repayment capacity based on your income and employment. Having a steady job with a regular income is thus very advantageous.
2 Existing customer:
If you have a salary account or a savings account and you are an existing customer with the bank you wish to transfer your home loan balance to, then the interest rates are generally lower.
To apply for a home loan balance transfer, click here.