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Home Loan Balance Transfer

Your balance transfer on home loan will be treated as a fresh loan.Home Loan Balance Transfer helps you reduce your EMIs by moving your outstanding loan from other financial institutes to the one which offers lower interest rate. Home Loan Balance Transfer or Refinancing or simply Balance Transfer is the process that allows you to benefit from the lower interest rate offered by the other lender. If you have an existing outstanding home loan with one borrower, you can make a home loan transfer, that is, shift the remainder amount to a different borrower who charges a lower rate of interest, the process is termed as a home loan balance transfer or refinancing. This unique home loan transfer service helps a customer avoid high applicable interest rates as listed by one home loan lender and migrate to a lower interest rate structure with another lender.

Best Home Loan Transfer Rates

The following are the best home loan interest rates available:

Banks
Transfer Rates
Current RLLR

SBI

6.95% p.a.

6.65%
HDFC Ltd.
6.95% p.a.
16.20% (RPLR)
LIC Housing Finance Limited
6.90% p.a.
14.70% (LHPLR)
ICICI Bank
6.95% p.a.
6.95%
Axis Bank

7.75% p.a.

7.75%
Bank of Baroda

7.00% p.a.

6.85%
Canara Bank
6.90% p.a.
6.90%
Bank of Maharashtra
7.05% p.a.
7.05%
Union Bank of India
6.70% p.a.
6.80%
Kotak Mahindra Bank
7.10% p.a.
6.75%
United Bank of India
8.00% p.a.
6.65%
IDFC First Bank
7% p.a.
7%
Federal Bank
7.90% p.a.
7.90%
Karur Vysya Bank
8.20% p.a.
7.20%
Dhanalakshmi Bank
7.85% p.a.
7.00%
Karnataka Bank
8.27% p.a.
8.27%
Tamilnad Mercantile Bank
8.45% p.a.
8.45%
PNB Housing Finance Ltd.
9.25% p.a.
8.90% (PNBHFR)

Documents Required

  • Completely filled loan transfer application form
  • For salaried employees: Salary slip of previous 3 months with a break up of gross salary, basic pay, home rent.
  • 6 months bank statement with salary credits before 15 days of loan application

To prove your eligibility, you’ll need to provide certain documents. Though this too is specific to different lenders, the common documents will be:

Identity proof (any of the following)

  • Aadhaar
  • Passport
  • Driving license
  • Voters ID card
  • PAN card

Address proof (any of the following)

  • Copy of Electricity Bill/Water Bill/Telephone Bill
  • Copy of valid Passport/AADHAAR Card/Driving License

Age Proof

  • 12th Marks Sheet
  • 10th Marks Sheet
  • Voter ID
  • PAN

For Self Employed

  • Documents Of Business Existence Proof
  • Bank statement of the loan EMI deduction account for the previous 12 months
  • Loan Statement Copy
  • All relevant documents relating to the property under the possession of the current lender

Self Employed Professionals

  • Academic Qualifications
  • Bank statement of the loan EMI deduction account for the previous 12 months
  • All relevant documents relating to the property under the possession of the current lender

Other Relevant Documents

  • Employer ID Card
  • Duly filled application form with 3 passport size photographs attached
  • Account statements for the previous twelve months showing any other on-going loan from other bank/ financial institution
  • Account statements for all accounts owned by the applicant in any bank

Frequently Ask Questions

If you have a question that deals with clients, customers or the public in general, there is bound to be a need for the FAQ page.

Home loan balance transfer is a facility under which a borrower can have the outstanding amount on a home loan transferred to a new lender, to avail better interest rates.

Loan transfer is mostly done to enjoy a lower rate of interest offered by a different lender, on an existing outstanding amount of home loan.

The maximum amount that can be transferred is the outstanding loan amount.

Transferring one’s home loan is not a good idea if:

  • They have paid more than 50% of your EMI
  • They are planning to leave the property in the foreseeable future
  • The current lender has a prepayment penalty

Applying for a loan transfer is essentially treated the same as applying for a new loan. Therefore, credit score plays a significant role in one’s eligibility. A drop in the credit score might lead to rejection application.

Most lenders today have no penalty in place for loan transfers. However, if they do, one could ask the new lender to take that under consideration. It may vary from lender to lender.

As discussed before, applying for a home loan transfer is treated as applying for a new loan by a lender. Therefore, as in the case of a loan approval, transferring it might take from 15 to 20 days.

Yes, in case if the property value increases from the time the original loan was taken by a borrower, they could apply for a top up, along with their loan to be transferred to a new lender. However, there might be legal charges and processing fees payable.

The loan transfer processing fee can be 0.5% to 1% of the loan amount.

The savings in EMI depend upon:

  • One’s current EMI
  • Existing rate of interest at the current lender
  • Interest rate offered by the new lender
  • Outstanding loan amount of the borrower

These following steps are important to be followed in case of a home loan transfer:

  • Check current rate of interest to calculate savings
  • Calculate and estimate the total cost based on all the fees and charges
  • Shortlist a new lender and also check if a top-up loan is needed
  • Collect all necessary property documents and foreclosure letter from the existing bank
  • Submit loan application with the new lender with photocopies of all property documents
  • Obtain the sanction letter
  • Get disbursement from the new lender via cheque or demand draft, for the existing lender and deposit it
  • Collect and submit all property documents from the old bank to the new one

The following steps must be followed when one is applying for a home loan transfer:

  • Check and ensure the lower interest rates offered by a lender is genuine
  • Ensure that the new lender does not compromise service quality in favour of lower rates
  • Check whether the loan is benchmark rate or prime lending rate. Usually, benchmark rates should be preferred
  • Ensure that the spread is fixed and not variable, which changes only in case the borrower defaults an EMI
  • Calculate all related charges and estimate total costs, including processing fees, documentation charges and stamp duty
  • Go through the loan agreement and ensure a prior notice is issued to or waived by the existed lender

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