Everything You Need To Know About Home Loan Balance Transfer
Posted on July 29th, 2019
The
repayment of a home loan becomes a burden for many because of the
long tenure and the interest rate. If the tenure is long, the
borrower has to keep paying according to the same rate of interest.
On the other hand, the higher rate of interest may also make it quite
impossible for the borrower to repay the loan.
Thus
the solution is to switch your lender and transfer the lance of the
home loan amount. This is known as the home
loan transfer. This proves
beneficial to many.
Let’s
discuss in detail.
Know
how it works
In
this system, as you choose a new lender for your home loan, the new
lender clears your due to the old one in full on your behalf. And in
turn, you get to repay the loan amount as per the EMI of the new
lender. The best part is you get to pay a lower interest rate. For
this reason, one has to choose the right lender. Not all the lender
will give you a lower interest rate. Always compare the rate of
interest of the home loan before you decide to switch to a new lender
for the home loan balance transfer.
Advantages
Of Balance Transfer of Home Loan
- It significantly lowers your EMI helps the borrowers to feel relaxed and pay the amount without much difficulty.
- There is less or no chance of delay in payments as the EMI gets reduced.
- It reflects your credit score positively.
- You can choose a shorter tenure with the new lender.
So
get your suitable lender and switch your home loan balance today!
Additional Read: Home Loan Balance Transfer – The Best Way to Reduce Interest Rate