What is Home Loan Balance Transfer?

Home loan is a long-term loan. It comes at a pre-decided rate of interest and other features. Undoubtedly, we all go in for the best terms and conditions when we start a home loan. But with changes in the economic environment and fluctuating market rates, the features, particularly the rate of interest can appear more rewarding than the one at which we are repaying our existing home loan. A home loan balance transfer is a process wherein the borrower can switch the unpaid principal balance of the existing home loan to another bank/financial institution that is offering lower interest rates and better features. This helps the borrower reduce his/her interest cost significantly.

Who Should Go For Home Loan Balance Transfer?

Home loan is a huge investment. It involves huge principal amount, which attracts an interest charge, which is paid over a long period. Thus, every parameter requires close assessment and evaluation when considering the home loan offers available in the market.

More often than not everyone practices due diligence when availing a home loan. Therefore, not everyone considers Home Loan Balance Transfer to a new lender. However, there may emerge situations wherein a Home Loan Balance Transfer emerges as a lucrative proposition.

Here is list of reasons about who should consider a home loan balance transfer:

Wrong Product Selection: It' quite possible that a person selected a wrong home loan altogether. Limited information, wrong comparison, or biased opinion, there may be varied reason behind a wrong choice. However, it is not mandatory to go in with the same lender throughout the loan term. Home Loan Balance Transfer may be opted in such cases and the borrower can shift the outstanding home loan principal balance to a new lender.

Drop in Rate of Interest:  When the interest rates in the economy fall, not every lender passes on the benefits to the borrower. As even a slight drop in the rate of interest can translate into huge saving for the borrower, the borrower can definitely opt for a home loan balance transfer in case not satisfied with the existing lender.

Unsatisfactory Services: There may be situations wherein the lender fails to keep up to the promises made initially. Any lapses in post-sale customer service can prompt a borrower to switch lender.

However, before taking a decision regarding the balance transfer one should consider the following:

Outstanding Term Period: The residual term period in an ongoing loan is very important when considering a home loan balance transfer. If the ongoing home loan is already nearing maturity, it is not advisable to consider a home loan balance transfer.

Amount of Difference: In case a major portion of the home loan is outstanding and a difference in rate of interest of more than 25 basis points is available from a different lender, only then one should consider a home loan balance transfer. In case even one of the two parameters is not prevalent, a home loan balance transfer cannot be justified.

Cost-Benefit Analysis: Before opting for a home loan balance transfer one should do a cost-benefit analysis. As the existing lender will charge a loan foreclosure fee/ prepayment charge and the new lender will charge a loan processing fee, one should consider a home loan balance transfer only if the switch appears lucrative in black and white.

Features of Axis Bank Home Loan Balance Transfer

Axis Bank Home Loan Balance Transfer appears to be a lucrative deal because of the following reasons:

  • Home loan principal can range between 3 lakh up to 5 crore
  • Avail loan at one of the lowest rates in the market. Home loan starts at 7.10% p.a. under the floating interest rate scheme. It is 7.35% p.a. under the fixed interest rate option.
  • Flexible long-term repayment term of up to 30 years.
  • Enjoy up to 85% Loan-Value Ratio
  • Salaried and self-employed eligible
  • Low processing fee

Benefits of Axis Bank Home Loan Balance Transfer

By applying for an Axis Bank Home Loan Balance Transfer one can enjoy the following benefits:

  • Choose between different types of home loan schemes to meet individual requirements - Axis Bank offers home loans under varied schemes. Borrower can choose the one as per personal requirements. The schemes available are:
    • Axis Bank Home Loan
    • Axis Bank Fast Forward Home Loan
    • Axis Bank Shubh Aarambh Home Loan
    • Axis Bank Asha Home Loan
    • Axis Bank Empower Home Loan
    • Axis Bank Super Saver Home Loan
    • Axis Bank Top-Up Home Loan
    • Pradhan Mantri Awas Yogna
  • Convenient repayment through EMIs through multiple channel repayment mechanisms - Axis bank home loan customer enjoys easy repayment options. He/she can pay through NEFT, Electronic Clearing System, RTGS, post-dated cheque, etc.
  • Choice between fixed and floating interest rate options - the most attractive part of the Axis Bank Home Loan Balance Transfer is that the customer can choose between the fixed and floating rate of interest. This choice helps the borrower to save significantly on the interest expenses.
  • Quick processing and minimal documentation - The total process of loan approval takes no more than 15 days. Furthermore, minimal documentation makes the loan application process easy and hassle-free.
  • Higher loan eligibility with co-applicants - The principal amount of home loan for which an applicant is eligible depends upon the income profile of the applicant. However, Axis Bank provides the opportunity to avail higher loan amounts simply by adding co-applicants.

Eligibility of Axis Bank Home Loan Balance Transfer

To qualify for an Axis Bank Home Loan Balance Transfer, one should meet the following eligibility criteria.

Salaried Individuals

  • Applicant must be a permanent employee of government or reputed Private Sector Company.
  • Applicant must be at least 21 years at the time of loan commencement and up to 60 years of age or retirement, whichever is earlier, at the time of maturity.
  • NRIs employed with reputed companies
  • 2 year job continuity with current employer

Self-Employed Professionals

  • Self-employed professionals namely Doctor, Architect, Chartered Accountant, Cost Accountant, Company Secretariat, Management Consultant can apply
  • Applicant must be at least 21 years of age at the time of commencement of loan and up to 65 years of age at the time of maturity.

Self-Employed Non-Professionals

  • Any self-employed individual filing IT Return
  • Applicant must be at least 21 years of age at the time of commencement of loan and up to 65 years of age at the time of maturity.

Documents Required For Axis Bank Home Loan Balance Transfer

Mandatory Documents

Application Form

PAN Card

Proof of Identity (Any One)
  • Passport
  • Aadhaar Card
  • Driving License
  • Voter ID Card
  • GOI Issued Photo ID Card
  • Government Employee ID Card
Proof of Residence (Any One)
  • Aadhaar Card
  • Driving License
  • Voter ID Card
  • GOI Issued Photo ID Card
  • Government Employee ID Card
  • Electricity Bill
  • Gas Bill
  • Telephone Bill
    (Land line)
  • Property Tax Receipt
Date of Birth Proof
  • Passport
  • PAN Card
  • Aadhaar Card with DOB
  • Driving License
  • Birth Certificate
  • SSC Mark sheet
Signature Proof
  • Passport
  • PAN Card
  • Banker's Verification
Income ProofSalariedSelf Employed
  • 3 month salary slip
  • 6 month salary slip
  • 2 years bonus statement in case of variable pay
  • 6 months bank statement in which salary is credited
  • 2 years Form 16 showing continuity in job

For NRI Salaried:

  • 3 month salary slip
  • Appointment letter/ contract letter from employer
  • Continuous Discharge Certificate for Shipping cases
  • 6 month Domestic NRE/NRO a/c statement
  • 6 month international salary a/c statement
  • Overseas credit report
  • Valid visa copy/OCI card
  • Passport copy
  • POA details
  • 2 year IT Returns along with  Computation of Income, P&L, Balance sheet duly signed by a CA
  • Tax Audit Report in case Gross Turnover is above 1 crore or Gross Receipts are above 25 lakh
  • 6 months account statements of personal and business accounts
  • CPC and tax paid challan
  • in case ITR is filed without digital sign
  • Business continuity proof (at least 3 years)
For Home Loan Balance Transfer
  • 12 months loan account statement
  • Latest outstanding letter issued and stamped by the bank
  • Copy of loan statement
  • No Objection Certificate/ Consent Letter from existing bank

Process of Axis Bank Home Loan Balance Transfer

Once you select Axis Bank as your preferred lender for your outstanding home loan your home loan balance transfer process will be as follows:

  • Apply for Loan Closure: Place a loan closure request to the current lender. In case there is a specified format or form available, please follow the same.
  • Obtain NOC and Other Balance Transfer Documents: Your lending institution will check your account for any delays or defaults on the ongoing loan and subsequently issue a No Objection Certificate for your Home Loan Balance Transfer Application.
  • Meet an Axis Bank Loan Executive: You can schedule your first meeting with the Axis Bank Loan Executive either by applying for the home loan balance transfer online through the bank's website. Alternatively, you can apply for the balance transfer loan directly through MyMoneyMantra.
  • Submit Documents: You are required to submit the required documents mentioned above to the authorized person assigned by the bank or MyMoneyMantra.
  • Receive Sanction Intimation: Once the documents are checked for authenticity and all missing documents are re-submitted, you will receive sanction intimation. This is usually with 5 days from submission of documents.
  • Submit Property Documents: You will be required to submit your property documents which the Axis Bank Legal and Technical Team will review. Once the team approves the loan, the same is confirmed and disbursed. The entire loan process from may take up to 15 days.

Charges on Axis Bank Home Loan Balance Transfer

Upon approval, Axis Bank treats a Home Loan Balance Transfer as a fresh loan. The fee applicable on each front is as follows:

Type of ChargeAmount of Charge
Processing FeeUp to 1% of the loan amount subject to a maximum of 10,000
Switching Fee (From Floating to Fixed Rate)Up to 1% of the loan amount subject to a maximum of 10,000
Switching Fee (From Higher Floating to Lower Floating)As per the offer applicable
Cheque Return Charges500 per instance
Instrument Swap Charges500 per instance
Duplicate Loan Statement Issuance Charges250 per instance
Duplicate Amortization Schedule Issuance Charges250 per instance
Prepayment fee for Fixed Rate Loan2% of the amount prepaid
Prepayment fee for Floating Rate LoanNil

Contact Numbers For Axis Bank Home Loan Balance Transfer

For queries regarding the Axis Bank Home Loan Balance Transfer you can contact the bank's customer care helpline on the following numbers:

Axis Bank Home Loan Customer Care: Toll-Free Numbers - 1800 103 5577, 1800 209 5577 

SMS Home to 5676782

You can visit the nearest bank branch. To learn about your nearest bank branch dealing in home loan balance transfer visit the website link https://branch.axisbank.com/?type=branches&_ga=2.235822855.745881778.1579582619-493427242.1565331448

You can also apply for an Axis Bank Home Loan Balance Transfer through MyMoneyMantra. Our representative will get in touch with you to process the Axis Bank loan application further.

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Kotak Home Loan Balance Transfer starts at 6.50% p.a for all profiles

Kotak Mahindra bank has announced a special festival bonanza for fresh and balance transfer home loan customers. Both salaried as well as self-employed borrowers can apply for home loan refinancing at 6.50% p.a onwards. Kotak’s balance transfer festival scheme is open for all loan amounts for customers with good credit history. The last date to apply is Nov 8, 2021.

FAQs on Axis Bank Home Loan Balance Transfer

✅ Who can be a co-applicant in an Axis Bank Home Loan Balance Transfer?

Co-owner of the property against which the loan is sought can be the co-applicant in an Axis Bank Home Loan Balance Transfer case. In case the property is not jointly owned, any immediate family member with independent income can become a co-applicant.

✅ Who is eligible for an Axis Bank Home Loan Balance Transfer?

Axis Bank follows a pre-set eligibility criteria for its home loan balance transfer. The requirements are as under:

  • The applicant must an Indian citizen.
  • Applicant can be resident or non-resident Indian.
  • NRI individuals must only be salaried employees.
  • Salaried Individual should be in the existing job for at least 3 years. He/she must be a permanent employee.
  • The salaried applicant must age between 21 years to 60 years or retirement whichever is earlier.
  • Self-employed applicants must be aged between 21 and 65 years and should enjoy steady income from the existing business.

✅ Which professions are eligible for Axis Bank Home Loan Balance Transfer under the self-employed category?

Axis Bank Home Loan Balance Transfer accepts home loan balance transfer applications from:

  • Doctors
  • Architects
  • Chartered Accountants
  • Cost Accountants
  • Company Secretariat
  • Management Consultant

✅ What are the processing charges applicable on Axis Bank Home Loan Balance Transfer?

Axis Bank charges up to 1% of the loan amount subject to a maximum of 10,000 as processing charges for a Home Loan Balance Transfer application.

✅ What are the pre-payment charges on Axis Bank Home Loan Balance Transfer?

Axis Bank changes no prepayment fee on prepayment of home loan availed under the floating interest scheme. However, the bank charges 2% of the amount paid as prepayment charge in case the loan is availed on fixed rate of interest.

✅ On what basis is the principal amount approved for an Axis Bank Home Loan Balance Transfer?

Axis Bank might not transfer the entire balance of the outstanding home loan. The principal amount approved by Axis Bank will depend upon the value of the property in question and the income eligibility conditions set by the bank.

✅ What is the process of Axis Bank Home Loan Balance Transfer?

After the applicant makes a clear and informed decision about getting his/her outstanding home loan transferred to Axis Bank, the process of applicant is as under:

  • Apply for Existing Loan Closure: Submit a loan closure request to the current lending bank or non-banking financial institution. The application must be submitted in the specified format provided by the lender.

Obtain NOC and Other Balance Transfer Documents: The lending institution will check the home loan account for any delays and defaults on the ongoing loan. Upon home loan closure the lender will issue a No Objection Certificate for your Home Loan Balance Transfer application.

  • Apply for Axis Bank Home Loan: You can schedule your meeting with the Axis Bank Loan Executive and apply for the loan. Alternatively, you can apply for Axis Bank Home Loan balance transfer loan through MyMoneyMantra.
  • Submit Documents: You are required to submit the application letter along with the requisite documents to the Axis Bank Loan Executive or Representative Manager of MyMoneyMantra.
  • Receive Sanction Intimation: The bank will check and scrutinize the submitted documents. Once approved, you will receive loan sanction intimation. The process usually takes about 5 days from submission of documents.
  • Submit Property Documents: The Axis Bank Legal and Technical Team will review the property documents. The loan is confirmed and disbursed only after an affirmation by the Axis Bank Legal and Technical Team. The entire loan processing time is up to 15 days.

✅ Are Non-Resident Indians eligible for an Axis Bank home loan balance transfer?

Axis Bank allows home loan balance transfer to Non-Resident Indians. However, only salaried individuals are eligible for the same. The Non-Resident Salaried individuals will submit the following documents income proof documents for their home loan balance transfer approval.

  • 3 month salary slip
  • Appointment letter/ contract letter from employer
  • Continuous Discharge Certificate for Shipping cases
  • 6 month Domestic NRE/NRO a/c statement
  • 6 month international salary a/c statement
  • Overseas credit report
  • Valid visa copy/OCI card
  • Passport copy
  • POA details