There’s no time as auspicious as Diwali to buy yourself a new home. Come November and you’ll find newspapers covered with all sorts of Home Loan offers. But what if you’ve already taken up a Home Loan? Is there any way to take advantage of these festive offers on your existing loan?
Of course there is! A Home Loan balance transfer can help you exploit these discounts and offers without any hassle. But before you shift your existing loan, here’s everything you need to know about a Home Loan balance transfer.
Know about a Home Loan Balance Transfer
Small Changes for a Big Difference:
Home Loans are not short-term investments and they usually involve large sums of money. Even if the new interest rates differ by just a single percentage point, it can lead to a lot of savings over the course of your loan. You’ll have to spend considerably less while clearing out the rest of your EMIs, especially if you go with a balance transfer during the early stages. To help you get on your feet after taking the loan, lenders like Bajaj Finserv also offer 3 EMI-free months after you opt for their services.
How a Balance Transfer Works:
The loan balance transfer process is simple. Your current lender will need to provide you with an NOC and the details of the outstanding amount on your loan. The new lender clears out the outstanding amount and your property documents are transferred to them. When you opt for a Home Loan Balance Transfer, make sure the benefits you get from the institution are worth it. With companies like Bajaj Finserv, you get to avail of a host of features like online account access, nil foreclosure charges, and part prepayment facility and refinancing.
How do You Get One?:
Applying for a balance transfer is similar to applying for a regular loan. You need to fulfil the eligibility criteria with your new lender and have a strong credit score. If you meet all their requirements, you’re good to go ahead and switch over your loan for a better deal.
Are there More Fees to Pay?:
Yes, you will have to pay a processing fee to the new lender which ranges from 0.5%-1% of the loan amount, but most lenders cap this amount at INR 5000. You may also need to pay a prepayment fee to your existing lender, but most financial institutions have waived this fee. But even if you calculate all these extra expenses, you’ll still save up a lot more in the long run.
If you’re not happy with your current loan, transfer your Home Loan this Diwali with to another financier. Websites of NBFCs like Bajaj Finserv are where you should check out the offers on Home Loans during Diwali and start afresh with their exciting Home Loan balance transfer offers.
Keep in mind the fact that the faster you apply for a balance transfer, the more money you save. This is because you would’ve already paid a major part of your interest in the beginning. But it’s not just the interest rate which might lead you to switch your Home Loan. A balance transfer is a good way to increase the tenure of your loan or get a top-up if the price of your property has gone up in the period between application and disbursement.