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HFFC Home Loan Balance Transfer
Max Tenure
20 yrs
Best Rate
11%
Processing Fee
1.5%
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Overview HFFC Home Loan Balance Transfer
HFFC, also known as Home First Finance Company is a non-banking financial institution headquartered in Mumbai. The finance provider is registered with the Reserve Bank of India (RBI). The company was established in 2010 and is currently valued at over Rs. 850 crores. HFFC offers various home loans and related financial services, home loan transfer being one of them. Here, we will discuss HFFC home loan balance transfer.
HFFC home loan balance transfer – what is it?
HFFC home loan balance transfer is a facility that allows borrowers to transfer an existing outstanding home loan to a new bank or lender to avail a lower interest rate or flexibility on other loan terms.
With a lower interest rate, a balance transfer facility helps borrowers save a significant amount on the net interest outflow on existing home loans. This can especially benefit all those eligible individuals who have taken home loans at higher interest rates.
HFFC home loan balance transfer – what are the benefits?
Here is how HFFC home loan balance transfer can benefit home loan borrowers:
- Lower interest rate: If a borrower has taken a home loan at a higher interest rate and as per his/her current credit profile, is eligible for lower rates, it makes sense to opt for a home loan balance transfer offered by HFFC. This can result in substantial financial savings.
- Extended loan tenure: HFFC allows an extended repayment tenure on home loan balance transfers. This can lead to lower EMIs and thereby reduce any financial pressure that a borrower may be facing.
- Additional benefits: As per an individual’s eligibility, HFFC offers improved loan features like EMI waivers, nil processing fees, etc.
- Improved services: If a borrower is not satisfied with the home loan services offered by an existing lender, he/she can opt for a home loan balance transfer to HFFC. This is because the lender is known for enhanced customer focus and better services.
- Top-up loan facility: Those who opt for a balance transfer facility at HFFC may be eligible to avail of a top-up loan. The top-up loan amount can differ depending on individual profile; however, it can come in handy to meet any urgent financial needs.
HFFC home loan balance transfer – eligibility
Whether an individual borrower is eligible for a home loan balance transfer at HFFC is based on various factors like:
- repayment capacity,
- age,
- credit score,
- repayment track record
Mentioned below are the eligibility criteria for HFFC home loan balance transfer:
- The borrower’s property or home should be ready to occupy or it should already have been occupied
- The borrower must have paid at least 12 home loan EMIs to the current bank or lender
- The borrower should not have any outstanding dues on the existing home loan
HFFC home loan balance transfer – documents required
Here is the list of documents required by HFFC for balance transfer applications:
| Purpose | Documents |
|---|---|
Identity proof |
|
Address proof |
|
Photograph |
|
Income proof (salaried) |
|
Income proof (self-employed) |
|
Bank statements |
|
Conclusion
Home First Finance Company (HFFC) provides a range of financial products and services specifically focused on the home loan category. It is the country’s most preferred finance provider for the different financial services offered. It offers some exclusive benefits that are tailor-made to the needs of different customers.
FAQs
1. Is balance transfer a good idea for a home loan?
Home loan balance transfer from one lender to another can benefit borrowers as they can avail of lower interest rates. This can result in a lower financial burden for home loan borrowers.
2. How many times I can transfer a home loan to another bank?
There is no limit on the number of times that a home loan borrower can transfer the loan from one bank to another. However, some banks or lenders may check the credit history of the borrower before allowing the balance transfer.
3. When can I transfer my home loan?
You can consider a home loan balance transfer if you have been repaying the loan for a very long time now or the current bank levies a prepayment penalty or you want to vacate the house or property anytime soon.
4. How does credit score impact home loan balance transfer?
A home loan balance transfer process is similar to a new home loan application. Therefore, the applicant’s credit score and credit history can determine his/her eligibility for the home loan balance transfer.
5. Are there prepayment penalties on refinancing?
Most lenders do not levy a prepayment penalty in case of refinancing. However, if a borrower’s bank has such provisions, then he/she can clarify the same with the lending bank before opting for refinancing.
6. How much time it takes for home loan balance transfer?
A home loan balance transfer is like any home loan availed from a bank. Therefore, the processing for the same can take 15-20 days depending on the original lender and the new lender’s processes.
7. Is balance transfer good for home loan?
A home loan balance transfer can be beneficial for existing borrowers who are eligible for getting home loans at lower rates, especially if they have a good credit profile.
8. Is it good to pay off home loan early in India?
If the interest rate on a home loan is more than the average rate offered in the market, the overall interest cost can go beyond one’s budget and cause financial pressure. This is when it makes sense to pay off the home loan early depending on one’s financial capability.