Reasons Behind the Success of Home Loan Transfer in India
Posted on July 24th, 2020
With respect to the present lending industry, home loan transfer of balance has become a feasible option for existing borrowers to avail of reduced interest rates. Your housing loan can be refinanced when the new lender repays the balance due to your previous lender. Subsequently, the borrower starts paying the EMIs for the remaining outstanding to the new lender as per their interest policy.
Benefits employed by the balance transfer-
- Low-interest rates - One of the key reasons for home loan balance transfer is a lower rate of interest offered by the new lender. It decreases the EMIs and often the tenor as well leading to more monthly savings.
- Better terms and conditions - Existing borrowers who have maintained a good track record of repayment and a healthy credit score can negotiate the policy. This enables them to enjoy additional features and benefits on the home loan. Opt for a lender that applies feasible part prepayment and foreclosure facility.
- Home loan top-up - This financing option can be availed on the borrower’s home loan transfer. It serves as a convenient option for those looking to cover up their additional expenses.
- It comes with no end-user restriction.
- No additional documentation.
- Borrowers are eligible for tax benefits on this top-up loan.
- Interest rates charged on this additional credit are attractive.
Borrowers should opt for financial institutions that offer a comparatively higher amount of top-up over and above their home loan.
Home loan customers must know everything about loan balance transfer before availing it. There may be associated fees and charges with this facility.