Loan Against Property Balance Transfer
Loans Against Property Balance Transfer is a facility that allows you to reduce your EMI or interest rate by transferring your outstanding loan from one lender to another. This facility lets you take advantage of lower interest rates available in the market.
So when should you take this facility? You should consider taking the balance transfer facility when your existing lender is charging a higher interest rate in comparison to what other lenders are ready to offer you.
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How to Calculate EMI on Loan Against Property Balance Transfer?
For calculating the Loans Against Property balance transfer EMI, you will need the following details:
1. Outstanding principal amount
2. Current EMI
3. Existing outstanding tenure
4. Interest rate
5.
Required term (months) to pay off the balance transfer amount at the new interest rate
| Particulars | Existing Loan | New Loan |
|---|---|---|
| Outstanding Balance | Rs. 8 Lakh | Rs. 8 lakh |
| Interest Rate (p.a) | 8% | 6.65% |
| Remaining Loan Tenure (months) | 3 years | 3 years |
| Monthly EMI Payable | Rs. 25,069 | Rs. 24,610 |
| Difference in EMI Payable | Rs. 459 | |
| Total Interest Payable | Rs. 1,02,487 | Rs. 85,972 |
| Wow Total Savings | Rs. 16,515 | |
Key Benefits of Loan Against Property Balance Transfer
You’re provided with numerous benefits of a Loans Against Property balance transfer, and some of them are highlighted below
Attractive interest rates
In the competitive edge, when everyone wants to show their best, the banks offer appealing interest rates to attract borrowers, and that’s why for a salaried, the lowest balance transfer interest rate is 6.0%.
Flexible repayment tenure
When you apply for a balance transfer, you have two options: lower your EMI, make repayment painless or shorten the loan tenor, and fast repay the loan. Also, the maximum loan repayment period is 30 years.
Top up facility
While opting for a balance transfer, you can avail top-up loan facility of up to Rs. 5 Cr, and that additional amount can be used for personal or business purposes.
Lower monthly EMI.
By opting to transfer your existing Loans Against Property you end up reducing your money Emi due to the reduction of Loans Against Property rate of interest.
Compare Loans Against Property transfer interest rates of all renowned banks
Compared to all significant banks in India, Axis Bank, ICICI Bank, HDFC Ltd, TATA Capital, and PNB HFL offers the lowest Loans Against Property transfer balance interest rates latest, up to 8.35%.
| Bank Name | Interest Rates | Per Lac Emi | Get Into It |
|---|---|---|---|
| Axis | 10.50% - 11.25% | Rs. 642 | Apply Now |
| ICICI | 8.35% - 9.25% | Rs. 645 | Apply Now |
| HDFC Ltd | 8.50% to 9.00% | Rs. 632 | Apply Now |
| TATA Capital | 10.10% | Rs. 772 | Apply Now |
| PNB HFL | 9.50% - 10.15% | Rs. 675 | Apply Now |
The following table gives you an example of how a Loan Against a Property balance transfer could help you save on the total interest payable:
| Particulars | Existing Loan | New Loan |
|---|---|---|
| Outstanding Balance | Rs. 50 lakh | Rs. 50 lakh |
| Interest Rate (p.a.) | 12% | 8.35 % |
| Remaining Loan Tenure (months) | 12 years | 12 years |
| Monthly EMI Payable | Rs. 4921 | |
| Total Interest Payable | Rs. 44,56,618 | Rs. 29,32,495 |
| Wow Total Savings | Rs. 15,24,123 | |
Key Points To Keep In Mind While Transferring Loan Against Property.
Tenure unchanged
Reduce monthly instalments and save for your future.
EMI amount unchanged
Reduce your tenure and settle the loan in less time.
Maximum tenure
Avail maximum tenure with reduced monthly instalments.
Reduced EMI
Save money with decreased monthly instalments.
Loan Against Property Balance Transfer Process
For switching your lenders for repaying a Loans Against Property, you can do in the following way:
Check your existing Loans Against Property agreement and make sure it allows balance transfer
Shortlist a new bank that is ready to offer you a lower interest rate with your comfort.
Compare the cost of balance transfer with expected interest savings from loan transfer.
Get a letter from existing lender along with documents specifying outstanding loan balance.
Submit these documents along with all other required documents which required to the new lender.
Once your new lender approves the loan, they will make payment towards your old loan and close it.
Eligibility Criteria for Loan Against Property Balance Transfer
You need to meet certain key eligibility criteria to avail the Loans Against Property balance transfer facility. Eligibility for balance transfer on personal loans is mainly dependent on the borrower’s capacity to repay and his/her credit worthiness or credit health. The personal loan eligibility calculator can also help potential borrowers know their eligibility to transfer their outstanding personal loan balance. Some common criteria that hold true for balance transfer of persona Fees And Charges Of All Major Banks
Salaried & Self Employed
You must be a salaried employee of any private limited company or public sector undertaking or self-employed with a minimum turnover as per the current policy.
Age
You must be between 21 to 60 years of age.
Minimum Income
You must have a minimum salary of INR 25,000 in case you reside in Mumbai/Delhi or INR 20,000 for rest of India.
Experience
You must have a at least 1 year of work experience.
CIBIL score
You must have a CIBIL score of at least 750.
Terms and Conditions
You can opt for an EMI of a maximum 65%, as a percentage of your income subject to specific terms and conditions.
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Check Your eligibility for Loan Against Property.
How much loan you are eligible for?
Fees and Charges of All Major Banks
The list of charges that you need to pay for a home loan are as follows:
- Application Charge/ Initial Processing fee – Non-refundable
- Processing fee
- Administrative fee
- Technical /Valuation Charge
- Legal /Title Charge
- Stamp Paper/Franking fee on the loan agreement
- Notary Charge
- Property Insurance Charge
- Cersai Charge
- Loan Insurance Charge
| Bank Name | Processing Fee | Prepayment Charges |
|---|---|---|
| SBI Home Loan | 0.35% of loan amount + GST, Nil for Govt. Employees | Nil |
| HDFC Home Loan | Up to 1.25% of the loan amount or ₹ 3,000 whichever is higher, plus applicable taxes | Nil |
| ICICI Bank Home Loan | Flat Rs 3000 /- + AT | N.A. |
| Axis Bank | Up to 1% of the Loan amount subject to minimum of Rs.10,000/- | Nil |
| PNB Housing Finance | 0.50% Or 10,000 + GST , whichever is higher. | Nil |
| Bajaj Home Finance | 0.50% Or 10,000 + GST , whichever is higher. | Nil |
| IDFC First Bank | 0.20% + 18% GST | |
| IndiaBulls | 0.50% to 1.00% + GST | Nil |
| Tata Capital Home Finance | 0.50% to 1.00% + GST | Nil |
| Equitas | Up to 1% of the Loan amount subject to minimum of Rs.10,000/- | Nil |
| Standard Chartered | Rs.10000 + GST | Nil |
List of Documents for Loan Against Property Balance Transfer
When you apply for balance transfer, it's almost like applying for a new loan. Therefore, you might have to submit all the documents that you may have submitted with the old lender. Take a look at some of the key documents required to apply for balance transfer:
Completed appliction form for balance transfer of home loan.
Applicant's latest passport-size photographs.
1. Address Proof
2. Age Proof
3. Income Proof
1. Birth certificate
2. 10th marksheet
3. Driving license
4. PAN
5. Voter ID
1. Aadhar Card
2. Voter ID
3. Driving license
4. Passport
1. Bank statements
2. salary slips
3. Form-16
4. IT returns
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Documents related to existing loan including a letter of consent.
1. sensen Letter
2. Statment of Account
3. List of Orginal Document
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