Why a home loan balance transfer can work wonders for you

Why a Home Loan Balance Transfer Works Best 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 and 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. Take these factors into consideration to benefit from your home loan refinancing.

  1. Do Your Research: Conduct an extensive research on the various lenders out there and the interest rates that they offer. You are sure to find many deals, so be sure to choose the lender who offers the lowest interest rate. Apart from low interest, choose lenders who offer favourable terms and 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 may require multiple documents. Organize and collate all your important documents like the loan sanction letter, present loan agreement, address proofs, identity proofs, 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.
  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.
  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 documents 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 To 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 includes not only a processing fee 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 Rate Is Based on MCLR: Due to the recent economic scenario, the MCLR rate is low. Since the RBI has asked lenders to revise their home loan interest rates based on MCLR, new borrowers stand to gain a lot. During your balance transfer, find out if the new lender’s interest rate 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 a low interest rate 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 8.85% and benefits like flexible repayment and a top up loan that can come in handy when you need additional finances.

Transfer your Home Loan Online Home Loan Balance Transfer Calculator

How to apply for Personal Loan

Wish to apply for a personal loan? Choose whether you want to apply online or offline and then fill up the application form with all required information. Submit your loan documents, namely ID and Address Proof, Employee ID, salary slip for last 2 months and salary bank account statements for last 3 months. Confirm the date and time for lender verification and once this is done, sign the loan agreement only after reading it carefully. Your money will then be disbursed within 72 hours. If you want to apply for a personal loan, you have to choose between online and offline application channels first. Thereafter, fill in all necessary information on the application form and provide all necessary documents like KYC documents, Employee ID, bank statements for last 3 months (salary account) and last 2 months’ salary slips. Get the verification done by confirming the date and time swiftly and thereafter, sign the loan agreement after carefully reading through it. The funds will be disbursed within 72 hours after completing these steps.

Calculate your home loan EMI with home loan calculator

It is important to know how much you can afford as the EMI when applying for a home loan. Bajaj Finserv offers a simple EMI calculator where you have to key in the home loan amount you desire, interest rate offered by the lender and toggle the loan tenor option to see how the EMI fluctuates. Planning one’s finances is the need of the hour when applying for a home loan. Instead of landing in a soup in the future, use the Bajaj Finserv EMI Calculator to work out the EMI that you can afford. Simply enter the loan amount you need, the interest rate offered by your lender and choose the tenor to get the EMI amount. You can toggle the tenor option and see how the EMI keeps changing. This simple step will help you attain greater peace of mind. Steer clear of financial pitfalls in the long run and enjoy greater peace of mind with the Bajaj Finserv EMI Calculator.

Myths About Fixed Deposits

Cumulative-non cumulative Fixed deposit

Are you seeking safe investment avenues which give you assured returns, flexible payout modes and most importantly, high rates of interest? Investing in a fixed deposit is the best solution. A cumulative fixed deposit has higher interest rates and the interest is paid at the time of maturity. This is the best solution if you wish to boost your savings and invest for a long-term goal. A non cumulative fixed deposit, on the other hand, ensures regular income through interest payouts at periodic intervals and is ideal if you wish to manage your regular expenditure. A fixed deposit gives you safe and assured returns at high rates of interest. A cumulative fixed deposit works best for you if you are looking to invest for the long haul or simply grow your savings. The interest rates are higher and paid out only at the time of maturity. However, if you are looking to earn a regular income from your fixed deposit, go for a non cumulative FD where the rates of interest are determined by the frequency of payouts. This will help you manage your regular expenditure more smoothly.

Tax benefits on a home loan

First-time homebuyers who take a loan to buy their houses can get several tax benefits. Not only are there deductions up to Rs. 1,50,000 and 2,00,000 on annual principal and interest repayments respectively, but you can also get deductions under Section 80C for stamp duty and registration costs. You can claim deductions up to a maximum of Rs.2 lakh and Rs.1,50,000 on your interest and principal repayments annually along with deductions on payments made for registration and stamp duty under Section 80C as well. You can also claim deductions on interest paid in the pre-construction phase and also an added deduction of Rs.50,000 under Section 80EE if your home is valued at less than Rs.35 lakh.

Why is personal Loan eligibility important?

“Want your lender to approve your personal loan application within 5 minutes and disburse funds within 72 hours? This is only possible if you use the free online personal loan eligibility calculator from Bajaj Finserv before applying. Fill in all your details and click the Check Eligibility button to learn about the loan amount that you are eligible for. Failing the eligibility check or not having required documents can lead to lengthy delays in loan approvals or total rejection. Bypass this negative impact on your credit score and use the Bajaj Finserv personal loan calculator for greater convenience.
Bajaj Finserv offers a free, online personal loan eligibility calculator where you only have to enter your details and click the Check Eligibility button to learn about the amount that you are eligible for. Checking eligibility before applying for a personal loan will help you get your loan approved in 5 minutes.”

When should you go for a top-up Loan?

 

What happens when you have to deal with unforeseen expenditure? Instead of considering a personal loan or asking friends and family members for help, you can apply for a hassle free top-up loan over and above your existing home loan from Bajaj Finserv. Get the benefits of low-interest rates, minimal paperwork, zero pre-payment charges, and loans up to 70% of your property’s market value. You can take a top-up loan over and above your existing home loan from Bajaj Finserv. This comes in handy whenever you have to take care of any unforeseen expenditure right from renovating your home to funding your child’s higher education aspirations. Get loans up to 70% of the market value of your property at low-interest rates and with minimal paperwork.

How to apply for an FD online and offline?

How To Apply For An FD Online and Offline?

To apply for a fixed deposit online, all you need to do is fill in your details on the relevant website forms. The procedure to open a fixed deposit account can be completed quickly, without performing any unnecessary legwork or visiting a bank or financial company in person. However, for those who prefer a more face-to-face application, it is also fairly simple to apply for a fixed deposit offline. Both online and offline procedures to open an FD have been designed with simplicity and effortlessness in mind to aid investors across the board.

Procedure For An Online Application for FD

Here is the procedure to apply for a fixed deposit account online:

  1. The first step is to log on to the website of the financial institution you wish to open an FD account with. Visit the website and download the online application form. This application consists of various sections. Ensure that you fill in all your details carefully.
  2. After you complete the online form, the next step is to save a copy on your computer in PDF format.
  3. Once you submit the form, a representative will get in touch with you to collect the necessary documentation such as your photos and IDs.
  4. Before the arrival of the representative, you will need to print out your form, affix photographs wherever required and sign the applicable fields. Along with that, you will also need to attach your KYC documents like ID proofs, address proofs, etc.
  5. After you have given your availability details, an official will arrive at your address and both verify and collect your documentation.
  6. After handing over the rest of the documents, all you have to do is submit the CTS compliant cheque with the amount you plan to invest as an FD.
  7. Your FD is now created!

Also Read: Documents Required and Eligibility Criteria For Starting a Fixed Deposit

Procedure For An Offline Application for FD

Many investors may find the offline procedures for application more suitable. Here are the steps to submit your offline application:

  1. The first step is getting the FD application form. You can visit your bank or financial company of choice and ask for the form.
  2. Fill in all the details under the relevant sections. Be cautious: read and understand all the sections clearly before filling it in.
  3. After you complete this, attach photos and sign wherever required.
  4. The list of what documents needed may be given to you verbally or in written formats. Make photocopies of all the relevant KYC documentation like address proof, identity proof, etc.
  5. Attach these documents to your application form and submit it at your nearest branch.
  6. Along with your complete application, do not forget to submit a cheque containing your FD amount.

That’s all that is required!

Avail a high-yielding FD scheme from Bajaj Finance now. With easy online application and offline application at over 200+ Bajaj Finance office across India, Bajaj Finance makes starting an FD account a breeze. Choose between a cumulative or non-cumulative FD to suit your requirements and calculate your returns using the convenient fixed deposit calculator.

Know More about FD Interest rates

Invest in FD @8.05% High Interest Rate

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