Any loan transfer is done in general to reduce the total cost the borrower or the customer has to pay in the form of EMIs. Likewise today we will learn some key points that are related to the home loan balance transfer process. In the same way, a home loan balance transfer is also opted by many of them to reduce their payments on monthly EMIs which can help them in transfer their home loan amount to another lending institution which offers them reasonably lower cost on the EMIs. That is the reason why borrowers and the customers will have an opinion on the home loan balance transfer option as the one which can benefit them from spending more amount on the monthly EMIs.
The main agenda behind the home loan balance transfer is nothing but to lower the cost on the rate of interest that is offered to the lending institutions like the banks and the non-banking financial companies. For example, if an individual is a holder of Indian Overseas Bank home loan and feels that the rate of interest is comparatively higher than his income returns. So in the case, he or she has total freedom to transfer the amount on his or her home loan to some other lending institution which offers the interest rate according to whatever he or she feels is reasonable and can pay the bank. This way it is very helpful for the borrowers or the customers to get the burden off their heads without being exposed to certain high rates of interest. And that is the reason why most of the people who wish to migrate between the banks to transfer their home loan amount find this option very useful for them.
One thing to keep in mind is that the interest rates related to the home loan vary from a certain percentage of 6.80% onwards and can go up to a percentage of almost 12%. So people have an option to choose whichever rate of interest is easy and possible for them to pay. Now coming to the process or procedure behind the home loan balance transfer or also known as simple balance transfer involves a processing fee and this may just be equal to a percentage of 1% of the loan that is being transferred and this can be paid by the new lender to whom the home loan is being transferred by the borrower. So in this case, the processing fee involved with the balance transfer of the home loan is quite reasonable when compared to the ones of other types of loan transfers.
One important point to make a note of is that the balance transfer of the home loan on an already existing loan can be sanctioned or availed only after a prior determined time as it will be mentioned in terms of the agreement on the original loan documentation itself. So the borrower has to take care of such minor things and should keep in mind to go in terms of this agreement procedure itself for the process to run smoothly and with more ease. But once after the whole process of the home loan balance transfer is completed the borrower has to do certain things such as he or she has to owe the principal transferred amount and also this may include some additional costs or charges on the new borrower and the lender apart from the old one.
These are some of the key points regarding the home loan balance transfer process that takes place. And one should also look after various lending institutions to avail for the low home loan interest rate.
Read More:-Tips for Transferring Home Loans
Dialabank 