Understand How Transfering Home Loan Balance Can Get You Extra Funds
Posted on July 6th, 2020
A home loan balance transfer is considered to be one of the most borrower-friendly facilities as it offers several benefits to an individual. From reduced interest rate and a shorter tenor to gaining additional funds, balance transfer has provided immense convenience to loan borrowers.
Reputed lending institutions also offer a top-up loan while you opt for balance transfer and is regarded as an effective method to accumulate additional funds. Several other reasons why home loan transfer is an excellent benefit extended by the lenders are listed below -
- Minimum formalities
The process is quite simple but you can avail the balance transfer facility only if you have repayed the home loan EMI for a period of 6 months or 1 year as demanded by your current lender. Also, if you have a decent credit history of timely repayments, lenders will be willing to extend you the home loan balance transfer facility.
- No end-use restriction
A top-up loan comes with no end-use restrictions, meaning you can utilize the loan amount for any personal or professional purpose as per your requirement. Starting from your education, medical expenses to funding your education, you can fulfill your urgent monetary requirement with a top-up loan.
Hence, instead of availing another loan separately, a home loan top-up through balance transfer can be a cheaper option to acquire extra funds. The rate of interest will be lower and the whole loan amount will be spread over a longer tenor. This will, in turn, ease the repayment of such loans as well.