Apply for Home Loan Balance Transfer

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Home Loan Balance Transfer

Fulfilling the dream of owning a house is one of the biggest achievements in life and requires a large amount of money. The banks and other financial institutions have helped several people in buying a house by offering a Home Loan. Usually, the banks charge interest a home loan that can range from 8.35% to 12%. This rate of interest varies based on the eligibility of the borrower and the lending institution. 
Every borrower wants to save on his/her interest cost and that can happen when the rate of interest is reduced. The rate can be reduced either by talking to his existing bank or transferring the loan from the current bank to another bank at a reduced rate.

 

What is HLBT?

Home Loan Balance Transfer is a process that facilitates the borrower to shift his existing home loan to another bank at reduced or lower rate of interest. With this, the borrower can pay future EMIs to the new lender at the reduced interest rate.
The process starts with the submission of an application requesting for the foreclosure statement of a home loan with the existing bank. If the bank accepts the application it will issue a foreclosure letter with current loan details including outstanding loan amount. After that, the borrower will file a request for a Home Loan Balance Transfer with the new bank. If the new bank accepts the loan application, all the formalities with the previous bank will be completed and all the new EMIs will be paid to the new bank.
Thus, Home Loan Balance Transfer is beneficial for the borrowers who have a running home loan at a higher rate but wants to optimize his interest cost.

 

Reasons for opting for Home Loan Balance Transfer

There are several benefits that a borrower receives for getting his Home Loan transferred. Some of the reasons could be:

  • Reduced monthly rate of interest
  • Reduced monthly outflow (EMI)
  • The borrower can also negotiate with his bank to reduce the loan tenor.
  • HLBT helps in the reduction of the amount of money the borrower has to pay interest during the entire tenor of the loan.
  • Banks also run special NIL fees offer on HLBT product from time to time.

 

 Steps for Home Loan Balance Transfer

The borrower has to perform the following steps to initiate the process of Home Loan Balance Transfer:

  • A borrower has to submit an application with the existing bank requesting for the foreclosure statement of a Home Loan.
  • On accepting the application from the borrower, the bank will issue a foreclosure letter including current loan details along with the details of the outstanding loan amount.
  • After receiving the letter from the bank, the borrower will request a Home Loan Balance Transfer to the new bank.
  • On acceptance of the application at the new bank, all the formalities with the old bank are completed.
  • After transferring the home loan, the borrower will pay all the EMIs to the new bank.  

 

Eligibility for Home Loan Balance Transfer

  • Age: The minimum age for applying for Home Loan Balance Transfer is 21 years for salaried employees. The maximum age for salaried employees is 60 years and 65 years for self-employed professionals and self-employed businessmen.
  • CIBIL Score or Credit History: Good CIBIL Score and sound credit history is one of the important factors that affect the approval of the loan application. The borrower must maintain a good credit score. In case the score dips at the time of a loan transfer the bank may reject the loan application.
  • Repayments track on current Home Loan: The borrower must have clear repayment track of at least 12- 18 months on his current Home Loan.
  • Work Experience: The applicant must have relevant years of work experience. He or she must have at least 2 years of work experience with 1 year of work experience in the current organization. For self- employed the minimum work experience required is 3 years in the same profession.  

 

Documents Required for Home Loan Balance Transfer

The following documents are required for applying for a Home Loan Balance Transfer:

 Document Type
 Duly filled application form along with the passport size photographs signed     across
 Identity proof (any one of Aadhar Card, PAN Card, Voter ID, etc.)
 Residential Address proof
 Age Proof (10th or 12th Mark Sheets, PAN Card, Voter ID etc.)
 Official Address (Any one of rent agreement, utility bills, lease etc) for Self-     Employed professionals and Self-Employed Business Men
 

 Income Proof (Salaried Employees)

  • Bank statement of last 6 months
  • Salary slips for last 3 months
  • Form-16
 

 Income Proof (Self-Employed Professionals and Business Men)

  • ITR of last 3 years
  • Bank statement of last 1 year
  • Profit and Loss statement and Balance Sheet audited by CA
  • Auditing reports and other financial documents
 Bank Statement of last 1 year from which the Home Loan EMIs have been deducted
 Copy of a loan statement 
 Complete property documents that are in the possession of the current   financial institution

 

Why take HLBT from mymoneymantra?

Mymoneymantra is one of the leading online platforms for financial services that can get you the best HLBT deal with maximum advantages. MMM is the oldest market player with more than 30 years of experience of delighting the customers. The experienced and skilled team of mymoneymantra deeply analyzes your financial requirements to get you the best loan offer of the market. The service-oriented professionals provide you support from the initial stage of loan process to the end stage of loan disbursement into your bank account. The key advantage of taking HLBT from mymoneymantra is the support the team offers even after the loan disbursement. You can apply for the best loan deal with mymoneymantra and get the easy disbursement into your account.    

 

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