Tips on acing your home loan balance transfer

Tips on acing your home loan balance transfer

A home loan can be a long-term commitment, and sometimes a floating interest rate can increase your EMIs to an extent when you’re forced to look for the quickest exit. In your hurry to reduce your repayment burden, you may accidently choose to proceed with a home loan balance transfer with a new lender without the necessary due diligence. Since home loan interest rates are at an all-time low with demonetisation and other government measures such as the RERA coming into play, you may be tempted to opt for a quick refinance to take advantage of low interest rates. While a balance transfer or home loan refinance may make your home loan more affordable, not getting it right may end up costing you more.

Consequences of an unplanned or hasty balance transfer

  1. In certain cases, the new lender’s interest rates might be low only for a certain time period and after that they could increase phenomenally.
  2. The terms and conditions of the new lender could be binding and restrictive. For example, the new lender may have terms that involve you paying a huge fine in case of foreclosure or pay high fees for prepayment.
  3. If you make a switch during the second half of your tenor, you could end up saving much less than you would have if you had switched in the beginning of your tenor.
  4. You may end up with a lender who doesn’t offer convenience in terms of online account management and customer service.
  5. If you hastily shift to a new lender, your old lender may not release your contract easily and create unnecessary issues.

Tips for performing a successful transfer

  1. Before considering a home loan balance transfer, have a conversation with your existing lender and request for lower interest rates. Certain lenders may oblige in order to retain you as their customer.
  2. Perform a thorough study of interest rates offered by various lenders and choose the one with the lowest interest rates.
  3. Apart from paying attention to interest, read the terms and conditions of your new lender carefully and ensure that the terms are not binding or contradictory to your interests in any way.
  4. Compare and analyse customer service of various lenders, take into account reviews of other borrowers, and then choose a lender with good service.
  5. Ensure that the new lender has the provision for prepayment with no strings attached. Certain lenders charge phenomenal fees for prepayment of loan. Hence, when transferring, ensure that no such clauses exist. Prepayment of the loan helps you save money that you would have wasted on additional EMIs.
  6. Remember that transferring a home loan is a long and challenging process, so plan ahead. Be prepared to re-submit documents like address proof, identity proof, etc. and get these ready in advance.
  7. Find out about all the fees and charges associated with the transfer and move forward only if it is truly feasible for you.
  8. Before performing a home loan balance transfer make sure to get an approval from your existing lender.
  9. Ensure that you get all your original documents and paperwork from your existing lender.
  10. Make sure to perform a home loan balance transfer as early in the tenor period as possible. This could save you a lot of money.

Pros of home loan balance transfer

Although it takes careful research and planning, performing a home loan balance transfer or refinancing your home loan is actually very beneficial for you:

  • New lenders may offer you affordable interest rates and thus, save you a lot on monthly repayment.
  • If performed early in the tenor, a home loan transfer can ensure that you save your hard-earned money.
  • You may be able to benefit from new terms that were absent in your earlier agreement.
  • You may be able to get an additional top up loan during your home loan transfer and benefit from lower interest and large loan amounts.
  • You may be able to increase your repayment tenor and reduce your monthly EMIs in case you are falling short of funds.

Choose to perform a Home Loan Balance Transfer with Bajaj Finserv, which not only offers low interest, but also the availability of a top up loan as well as other benefits like a 3 EMI holiday. To find out more click here.

How do you know when it is the right time to transfer your home loan?

How do you know when it is the right time to transfer your home loan?

Sunil Chedda, a stock market analyst in Chennai, was in the process of applying for a home loan so he and his family could live more comfortably in a home of their own. His application was approved, and he bought a larger apartment that everyone was happy with. However, after the third year of repayment, he began suffering from bad experiences with his lender. Not only was the lender slow to respond to requests, the bank was also displaying inefficiency at maintaining the records of his past EMI payments. Another factor that forced Sunil to reconsider his present lender was that he wanted to make the most of the lower interest on home loans post demonetization.

After a pointless discussion with his existing lender, he realized he needed a better solution. When he consulted his mentors, they advised him to seek a home loan balance transfer. He considered the move taking into account the time left on his home loan repayment, the charges and fees he would incur and the money he would save. Seeing that the advantages of a home loan balance transfer were too many to ignore, Sunil went ahead. Today, 10 years later, Sunil is still happy with his decision and has ended up saving a large sum on his home loan.

You can also experience the numerous benefits of a home loan balance transfer like Sunil if you take certain measures. The most important factor for a successful transfer is timing.

The best time to seek a home loan balance transfer

  1. When interest rates on home loans are low: The interest rates for a home loan can fluctuate over time, but currently, they are on an all-time low. It is best to consider a balance transfer when the rates are low in order to save more.
  2. At the beginning of your repayment tenor: It is best to transfer your home loan when you are at the beginning of your repayment tenor. This helps you save more, even if you account for the money you will have to spend on carrying out the transfer such as processing fees, administrative charges and conversion fees.
  3. In case your top up loan is rejected or has high interest: A top up loan is an additional loan that is given to an existing home loan customer, and may be used for any purpose, be it home renovation or medical reasons. If your existing lender denies your request for a top up loan or has a high interest rate on a top up loan, do a home loan balance transfer to a new lender who has more affordable top up loans available for you.
  4. To renegotiate terms and conditions of your home loan: Opt for a home loan balance transfer when you want to reset the terms of your home loan. These may be regarding lower or no charges for prepayment, reduction in fees on foreclosure and other benefits like an EMI holiday. Check if there are other lenders who can give you what you want, and make a switch to enjoy the benefits.

How a home loan balance transfer can benefit you

A home loan balance transfer can help you in numerous ways:

  1. It can lower your total EMIs by a reduction in interest rate
  2. It can help you get a longer repayment tenor, thus reducing your monthly EMIs
  3. It can help you get better and more beneficial terms
  4. It can offer you an affordable top up loan
  5. It can help you experience better customer service

Looking for a suitable lender to carry out a home loan transfer? Experience the benefits offered by Bajaj Finserv, which gives you lower interest with options for flexible repayment and top up loans. For more information click here.

Engineer Loan flash sale

Engineer Loan flash sale

An Engineer loan from Bajaj Finserv can help your business grow. You can use this loan to set up or expand your business by buying new equipment or machinery, hiring new labor, or renting some additional facility.

So, if you have been thinking of taking a loan recently, now is the ideal time. Apply for an Engineer Loan from Bajaj Finserv between 26th June to 3rd July and avail an assured gift on your loan.

 Limited period offer – Hurry!

A happy customer is a loyal customer. Bajaj Finserv understands this and, thus, comes up with exciting offers from time to time. If you take an Engineer loan from Bajaj Finserv during the flash sale, you get an assured Lenovo tablet on every such loan. However, this amazing offer is valid only between 26th June and 3rd July.

Benefits of an Engineer Loan from Bajaj Finserv

An Engineer loan from Bajaj Finserv has several benefits. These include:

Preapproved offers up to Rs.15 lakh

Preapproved offers accelerate the borrowing process. If you are an existing customer, you have an additional advantage. You can get preapproved loan offers of up to Rs.15 lakh. Thus, you can easily finance your business with an engineer loan from Bajaj Finserv.

Flexible loan offers

Easy availability of capital is essential for the growth of any business. Bajaj Finserv offers flexibility to engineers while borrowing and repaying. As a customer, you get a flexible line of credit. Such a facility allows a certain limit of credit to you. However, you pay interest only on the amount that you actually use from the total credit limit. Also, you get an option of paying only the interest amount as the Equated Monthly Instalments (EMI). You can pay the principal amount at the end of the year. Such a credit facility also allows you to prepay a part of your loan.

Fewer formalities

Dealing with forms, documents, and papers is an indispensable part of any professional’s life. Bajaj Finserv offers some relief to you while borrowing. You do not need any guarantor or collateral for availing an engineer loan. You just need to submit your income, identity, and employment proofs. Your loan application is likely to get processed and approved within five minutes once these documents are submitted. Also, you may get your loan amount credited to your account within 72 hours.

Convenience at your fingertips

Bajaj Finserv allows you to carry out all the loan transactions online. You can easily apply for an engineer loan in a just a few clicks. You can also have access to all the information related to your loan. For this, you must log into their customer portal.

To sum it up

There are several engineers who need funds to advance and grow their careers. An Engineer loan from Bajaj Finserv can be of help to such hardworking professionals. You get a fair degree of repaying flexibility with such loans. The entire borrowing process is easy and quick. In addition to this, you can get several exciting offers from time to time. One such offer is valid from 26th June to 3rd July. Hurry, before it ends!

Apply for Engineer Loan Online Check Eligibility for Engineer Loan

CA loan flash sale

CA loan flash sale

A Chartered Accountant (CA) loan from Bajaj Finserv offers a plethora of benefits. To name a few, it comes with affordable interest rates, fast approvals and minimum documentation.

If you are a practicing CA, you can avail this loan to set up your own CA firm or expand the scale of operations of your existing firm. So if you have been planning to avail a loan recently, we can give you another reason to do so.

Take a CA loan between 26th June to 3rd July and get an assured Lenovo tablet. Here are the details:

Hurry! Offer valid for a limited period

Bajaj Finserv prioritises customer satisfaction. The new flash sale offer makes CA loans all the more attractive for the customers. Now, if you take a CA loan from Bajaj Finserv, you get an assured Lenovo tablet. This exciting offer has a limited validity. You will be entitled to this amazing gift only if you take a loan between 26th June and 3rd July.

Besides this, Bajaj Finserv’s CA loans offer several other benefits to the customers.

So what are the benefits of a CA loan

Loans up to Rs.30 lakh

Every business requires capital. Bajaj Finserv helps you fulfill such needs. You can find several lenders online. But, Bajaj Finserv offers you the highest loan amount. You can borrow up to Rs. 30 lakh for a tenor ranging from 12 to 60 months. What’s more is that you can get the money at attractively low-interest rates. You can fund your business in the most effective manner with such a CA loan.

Flexi loan offers

If you are a CA looking to finance your business in the most flexible manner, you can opt for a flexi loan. Such a loan allows you a certain amount of credit. You can withdraw money from this line of credit as per your needs. An advantage of this loan is that you pay interest only on the amount that you use, and not for the entire assigned amount. Also, if you have any surplus funds, you can prepay the loan. This can be a good loan option since it helps you save cost. As an existing customer, you are also entitled to certain preapproved loan offers from time to time.

Easy accessibility

The internet has become the need of the hour. It not only saves time but also offers convenience. This is crucial for any business. You can save your precious time by transacting online. You can easily apply for a CA loan on Bajaj Finserv’s website. Moreover, this can be done at any time of the day as per your convenience. To give a first-rate service to you, Bajaj Finserv has an online customer portal. You can log in here to view any loan-related details. You can also use the helpline numbers in case of any difficulty.

Easy approval and quick disbursal

You can get a CA loan from Bajaj Finserv with very few formalities. Such loans are secured. You do not need any guarantor or collateral for availing them. Also, the document requirement is kept to a minimum. You just need to submit your basic identity, income, and employment proofs. The approval and disbursal process is also quick. You can get approvals for your loan within five minutes. Also, you do not have to wait for a long time for your money. It gets credited to your account within a reasonable amount of time.

The bottom line

You can easily enhance your career with a CA loan. Such loans are flexible and easy to avail. The entire borrowing process is hassle-free. In addition to these, you get exciting offers from time to time.

Apply for CA Loan Online Check Eligibility for CA Loan

Make effective use of your fixed deposits: Get a car loan

Make effective use of your Fixed Deposits: Get a car loan

Fixed deposits have been the apple of every investor’s eye for many years now. There are a number of reasons for this—the most prominent among them being the independence from market fluctuations. Apart from that, the key benefits of investing in fixed deposits include zero volatility, complete stability and a much higher interest rate for senior citizens. FDs also inculcate a habit of saving your money rather than spending it, as opposed to the modern financial methods like credit cards. And unlike the share market, fixed deposits are completely risk-free.

Although these are all the usual benefits of fixed deposits, there are also some that are relatively lesser-known. One such remarkable benefit is the option of using your fixed deposit to take a car loan. It’s simple, uncomplicated, and very easy-to-use. Just check if you’re eligible and apply directly. You can even do it online.

Need to buy a car? Don’t worry, your Fixed Deposit has your back

If you’re in the market for a car but worried about dipping into your savings or applying for a loan to fuel your dream, check out the following benefits of utilizing your Fixed Deposit to pay for it instead!

  • The most important factor in your favour if you choose to use your Fixed Deposit for buying a car, is that borrowing against an FD is considered as an overdraft option in the world of car financing. This means that it isn’t even termed as a loan, since the money in your FD is yours after all. You’re just using it as security.
  • Another beneficial factor is that the rate of interest charged from you is significantly lower than if you acquired a car loan. Since loans against fixed deposits are secured loans, you will be charged an interest merely 2% to 2.5% higher than the one you get on your FD. If you consider the average interest rate on fixed deposits to be around 8%, your car loan against fixed deposit will only be around 10 to 10.5%.
  • Additionally, you won’t be charged any processing or miscellaneous fees if you use your fixed deposit. Therefore, you can rest assured with the fact that you’re only paying for what you bought.
  • And if you’re someone who likes to be in control of the situation (and who doesn’t?), car loans against fixed deposit are your best bet. This is because where regular car loans are involved, the one who provides you with the funds is the legal owner of your vehicle. This means that if, due to unforeseen circumstances, you have to default, your lender can claim your car as their own. Conversely, in fixed deposit financing of your car, you continue to stay the one and only person in charge of the car. All that happens is the amount due gets withdrawn from your fixed deposit account.
  • Even if you’re a cautious person who prefers to pre-pay your dues, fixed deposits are still your best friends. You can go ahead and pre-pay all the amount you want with no worries about having to cough up any pre-payment charges.

Find out more about high interest Fixed Deposits offered by Bajaj Finance and take the prudent decision to finance your loan while saving money. For more information, visit:

Know More FD Interest Rate

Why a home loan balance transfer can work wonders for you

Why a Home loan balance transfer can work wonders for you

A home loan balance transfer occurs when a borrower with an existing home loan transfers the loan to a different lender. You can choose to transfer your home loan because of numerous reasons. Normally, this is done by borrowers in case they find the high interest rates of their existing lender too high to continue with. Though there are numerous advantages of home loan balance transfer, it can be a stressful process. So maintain a high level of caution proceed carefully.  

Tips to make a home loan balance transfer work in your favour

The success of a home loan transfer depends on numerous factors. If these factors are carefully dealt with you can benefit from home loan refinancing.

  1. Do your research: Conduct an extensive on the various lenders out there and the interest rates that they offer. You are sure to find many deals and incentives, so be sure to choose the lender who offers the lowest interest rate. Apart from low interest, choose lenders who who offer favourable terms and grant incentives on loan transfers.
  2. Ensure you have money to pay for interim security: When performing a transfer it is natural for a lender to want security to protect its interests. Hence, certain lenders may ask for an interim security to be transferred to them during the transfer process from the old lender to the new lender. Though this payment is usually refundable, it is important for you to make financial provisions required for paying for this security deposit.
  3. Collect all your important documents: After choosing a lender, your next move should be proceeding with the application procedure. This will require numerous documents. Organize and collate all your important documents like the loan sanction letter, present loan agreement, address proofs, identity proofs and photographs, stamp duty and registration of your property, IT returns, etc. Remember that you will need all the documents needed to apply for a fresh loan.
  4. Get ready for the lender to verify all details: Once all the essential documents have been submitted, the new lender will perform a verification of all your details including your credit score. It is important that you prepare for this inspection and clear the verification tests of your lender to prepare with the transfer without a hitch.
  5. Make sure you get all the appropriate approvals: Once you are through with the formalities of the new application, it is important to get the approvals of both your old lender and your new lender. Submit a formal application of loan transfer with your existing lender and get a consent letter or no objection certificate regarding your transfer. Then make sure the new lender gives you the approval too.
  6. Collect and sign your loan agreement: You new lender will give you a draft of your new loan agreement, which you will need to sign. Then you will receive a formal letter that sanctions the loan. Keep the agreement and the loan sanction letter carefully with you for future reference.
  7. Make sure the property documents are transferred: Once you get the application of transfer done, your existing lender will need to transfer important property paperwork to the new lender. This is an important step, and you should make sure that your documents do not get misplaced during the process.
  8. Pay the balance and confirm the same with your existing lender: Based on when you transfer the loan, you will need to pay off any balance dues to your old lender. Before you move to the new lender, ensure that you have paid whatever is owed, and that you have a receipt to prove it.
  9. Do not agree for a longer repayment tenor with the new lender: Even at a lower interest, increasing the tenor drags out the EMIs and makes you end up paying more interest. Try to repay your new home loan quicker, and since reduced interest leads to reduced EMIs, you can actually do this without breaking a sweat.
  10. Make sure you’re aware of the cost of the transfer: Balance transfer usually include not only a processing fees and stamp duty, but also legal and technical charges, valuation and verification fees, etc. Your existing lender may also levy a penalty. Make sure there are no hidden costs and you know exactly what you are paying. Then see if doing the transfer still saves you money.
  11. Find out if the new home loan interest is based on MCLR: Due to the recent economic changes, the MCLR rate is low. Since the RBI has asked lenders to revise their home loan interest based on MCLR, new borrowers stand to gain a lot. During your balance transfer, find out if the new lender’s interest is based on this lending system—and also find out how much the interest will increase in the next year. This will ensure that you not only pay low interest, but are also prepared for the future.
  12. Enquire about a top up loan: Doing a balance transfer may also give you access to a cheap top up loan that you can use for a reason of your choosing. With low interest and long repayment tenor, this can be of great help to you. Make sure your new lender offers you a good top up loan down the line by enquiring about it when you make the transfer.

Do a Balance Transfer with a trustworthy company like Bajaj Finserv, which offers low interest rates of about 8.50% and benefits like flexible repayment and a top up loan that can come in handy when you need additional finances. For more information, click here.

Be smart and go over this checklist before signing up for a home loan

Be Smart and go over this checklist before signing up for a home loan

Today, every lender is competitively adjusting home loan interest rates. Hence, if you are a borrower, there has never been a better time to seek a home loan. And just in case you already have a home loan, but your lender is charging uncharacteristically high interest rates, it would be prudent consider a home loan balance transfer and shift to a lender offering lower rates.

Checklist for securing an appropriate home loan

Here are a few things you should consider when opting for a home loan:

  1. Evaluate whether a home loan suits your purpose: Do you require the loan specifically for your new home or is there any other reason behind it? Applying for a home loan is only sensible if you require it for residential purposes. If you are considering it to make an investment, the demonetization and reduction in home loan interest rates will not benefit you since experts say there may be a correction in the real estate market soon.
  2. See if your interest rates are based on MCLR: MCLR is the marginal cost of funds based lending rates. Lenders that use this have lower home loan interest rates. Such systems also offer the borrower a notification of when the interest rates are reset. However, it is imperative to keep in mind even borrowers under the MCLR-system will see a low rate only for a certain time since a majority of home loans have an interest reset date of six months to 1 year. This means that only those who availed loans between April 1, 2016, and June 1, 2016, will benefit from the recent rate reduction.
  3. Analyse your income and affordability: Since your interest rates payments are made directly from your monthly income, before you apply for a home loan, it is important to analyse how much interest you can afford and plan accordingly.
  4. Carefully organize and submit all documents: The eligibility documents for a home loan include an address proof, identity proof, employment proof, salary slips and bank statements. Keep this ready for a quick and fast application process.
  5. Retain knowledge of tax benefits: The government provides tax deduction to new home loan borrowers under section 24, 80C and 80EE. These sections provide a deduction of up to Rs.2 lakh under section 24 for interest paid on self-occupied property, Rs.15 lakh under section 80C for home loan principal repayments and up to Rs.50,000 on home loan interest under Section 80EE for first time borrowers under certain conditions.

 

Checklist for choosing a home loan balance transfer

If you’ve already secured a home loan but are unhappy with your current lender or your home loan provisions, consider switching to a different company. The checklist is largely similar to when you apply for a home loan, with the following additions:

Is it essential for you to change institutions? Make a thorough list of the problems you are facing with the lender and ask yourself: Is a home loan balance transfer is the only way to sort out these problems? The various problems you might face could include high interest rates, bad customer service, prepayment charges, etc. If you are facing such problems with your lender, see if there is another mode of tackling these problems. For example if your lender is charging high interest rates, try to initiate a dialogue and see if your lender arrives at a mutually beneficial solution.

Consider the tenor: Avoid indulging in any sort of changeover or home loan balance transfer if you are reaching the end of the tenor. A transfer is as good as applying for a new loan and has a tedious application procedure. All this hassle is not worth it if you have already made numerous successful EMI payments towards your current loan and have only a little bit of the tenor remaining.

Retain all the relevant documents: In addition to the documents required when applying for a home loan, get approvals from both previous and new lenders by submitting no objection certificates and letters of consent.

Bajaj Finserv can help you get the most suitable home loan, or even help you out with the ideal home loan balance transfer with rates as low as 8.50%! You can start immediately by applying for a home loan by clicking here.

When and why you should transfer your home loan

When and why you should transfer your home loan

Demonetisation is playing a key role in the steady decline of home loan rates in the current economy. Additionally, shifting your home loan from base rate to MCLR will help you switch to lower interest too, since MCLR reflects the Reserve Bank of India’s cut in repo rates, while base rates remain unaffected by an increase or decrease in repo rates. Since the MCLR system was put in place in April 2016, most banks have decreased their home loan interest rates to reflect MCLR, and based on the reduction in home loan prices across India, other lenders like NBFC and financial companies have lowered their rates too. Thus, it is the next time for new borrowers to take a home loan and the right time for existing borrowers to benefit from a home loan balance transfer.

Here’s more information you will need if you are an existing home loan customer and want to save on your monthly EMI payments.

What is the ideal time for a home loan balance transfer?

  1. When there are no transfer costs: When opting for a home loan balance transfer, the lender will probably charge you for the transfer. If you are switching to a lower floating interest rate, your lender is likely to charge you 0.5% to 1% on your outstanding amount. This cost can be negotiated with your lender to arrive at a mutually favourable agreement. It is advisable for you to look for other options if all your negotiations are proving fruitless.
  2. When the tenor remaining is significant: The tenor for a home loan ranges from anywhere between 10 to 25 years. However, if you have already made a majority of your EMI payments and are in the last quarter of repaying your loan, avoid doing a balance transfer. This is because low interest will not save you much money, since the second half of your tenor mostly consists of repaying the principal and the first half consists of paying off your home loan interest. Thus, you will save a lot of money when you switch a t the beginning or first half or your repayment tenor.
  3. When the outstanding principal amount is high: Perform a home loan balance transfer when the outstanding principle amount is high enough. Only when you haven’t repaid most of the principal amount can you benefit from the lower rates of interest offered by a new lender. If you have a small amount of outstanding principal it is unwise and futile to apply for a home loan balance transfer.
  4. Times during which the MCLR is at its lowest: Certain economic scenarios cause a reset in the interest and the MCLR is one such factor. The MCLR is the minimum rate of interest below which lenders usually cannot lend. Now that banks are revising home loan interests based on MCLR, this is good news for most home buyers and loan borrowers, as it lowers interest costs. So make a home loan transfer when the MCLR is low to make your home loan cheaper.

Primary benefits of a home loan balance transfer

 There are numerous advantages of home loan balance transfer; some of them are listed below:

  • A home loan balance transfer lets you opt for a lender that offers lower interest rates and thus can save you some income
  • Allows you to experience the new and possibly better customer service
  • An informed home loan balance transfer can save you from paying expensive EMIs
  • It is possible that your new lender could offer you incentives like cheaper or zero cost prepayment options and other added benefits
  • A home loan transfer can also give you a good top up loan at an affordable rate as further financial assistance

Looking for the right home loan balance transfer? Consider Bajaj Finserv which offers a low interest, an affordable top up loan as well as benefits such as a 3 EMI holiday. Apply for a balance transfer right away by following this link:.

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