Are you looking to transfer your existing home loan to another lender for a lower interest rate? The interest rate is one of the most critical factors to consider while transferring your home loan balance. A lower interest rate can help reduce your EMI payments and save you a significant amount of money over the long term.
Following are the key details of Home Loan Balance Transfer:
|Loan amount||Up to Rs. 15 Crores|
|Rate of interest|
8.50% - 9.15% p.a.
|Tenure||Up to 30 years|
|Lowest EMI possible||Rs. 758 per Lakh|
|Processing fee||0.25% to 2% of the loan amount|
Transferring your home loan balance involves moving your outstanding loan amount from your existing lender to a new lender with better terms and interest rates. The process typically involves a new loan application, verification of documents, and approval from the new lender. You may also be required to pay a processing fee, prepayment charges, and other fees associated with the balance transfer.
Compare Best Home Loan Interest Rates starting @8.50% from multiple Banks and NBFCs.
|Top Banks||Interest Rates||Processing fee||EMI/Lakh|
|HDFC Bank||8.50% - 9.15%||Up to 0.50% of the loan amount or Rs. 3,000 whichever is higher + GST||Rs. 758|
|Kotak Mahindra Bank||8.70% - 8.95%||Up to 0.50% of the loan amount + GST||Rs. 783|
|IDFC First Bank||8.75% - 8.85%||Up to 0.50% of the loan amount + GST||Rs. 787|
|Home First Home||8.70% - 17.50%||2% of the loan amount||Rs. 783|
|Bajaj Finserv||8.50% - 14.00%||Up to 0.50% of the loan amount + GST||Rs. 765|
|Bank of Baroda||8.40% - 10.60%||Up to 0.50% of the loan amount + GST||Rs. 762|
|ICICI Bank||9.00% - 10.05%||0.50% - 2.00% of the loan amount or Rs. 3000/- whichever is higher + GST||Rs. 805|
|Canara Bank||8.40% to 11.25%||0.50% of the loan amount (Min. Rs.1,500 and Max. Rs.10,000)||Rs. 762|
Calculating the EMI (Equated Monthly Installment) for a Home Loan Balance Transfer involves a few steps:
Step 1: Determine the outstanding principal amount of your existing home loan. This is the amount you still owe to your current lender.
Step 2: Find out the interest rate that you will be charged by the new lender for the balance transfer. This interest rate will depend on various factors, including your credit score, loan tenure, and loan-to-value ratio.
Step 3: Determine the loan tenure for the balance transfer. This is the duration over which you will be repaying the new loan.
Step 4: Use an online EMI Calculator or a formula to calculate the EMI. The formula to calculate the EMI is:
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
P = Principal amount (outstanding balance of the home loan)
R = Rate of interest (monthly rate)
N = Loan tenure (in months)
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Here are the steps involved in the process of Home Loan Balance Transfer with Top-up:
Best Home Loan Interest rates Starting From @8.50%, Check Latest Schemes & Offers
Home loan balance transfer schemes and offers can provide borrowers with several benefits, including lower interest rates, reduced EMIs, and additional finance options. Some of the popular home loan balance transfer schemes and offers are:
To be eligible for a home loan balance transfer, the following criteria must typically be met:
Additional Info: Looking for 50 Lakh Home Loan? Check EMI & Apply
Banks require a certain set of documents to process your loan transfer application.
Here is a list of documents that you will need to apply for a home loan balance transfer:
Home loan balance transfer interest rates can be influenced by various factors. Some of the key factors that affect home loan balance transfer interest rates are:
Apply for Home Loan Balance Transfer online instantly and get lower interest rate starting at 8.50% p.a. Get better terms and services. You can also avail instant top up loan facility during balance transfer.
You can apply for a home loan balance transfer by approaching a new lender and submitting the necessary documents and application.
SBI, HDFC, ICICI Bank, Axis Bank, and Bajaj Finserv are among the banks offering the lowest interest rates on home loan balance transfer.
HDFC's home loan balance transfer interest rates start from 8.50% - 9.15%.
SBI's home loan balance transfer interest rates start from 8.40% - 10.05%.
Kotak Mahindra Bank's home loan balance transfer interest rates start from 8.70% - 8.95%.
Yes, applying for a home loan balance transfer can impact your CIBIL score. It's important to check with the new lender about the impact on your credit score before applying.
You may require a guarantor for a home loan balance transfer depending on the lender's policies and your eligibility criteria.
Some banks and HFCs may offer lower interest rates to women for home loan balance transfer.
A home loan is a loan taken to purchase a property, while a home loan balance transfer is the process of transferring the outstanding balance of an existing home loan to a new lender. The balance transfer can help you save money by availing of a lower interest rate or better terms and conditions from the new lender.