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

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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%.

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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.

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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.

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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.

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Tenure unchanged

Reduce monthly instalments and save for your future.

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EMI amount unchanged

Reduce your tenure and settle the loan in less time.

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Maximum tenure

Avail maximum tenure with reduced monthly instalments.

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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

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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.

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Age

You must be between 21 to 60 years of age.

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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.

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Experience

You must have a at least 1 year of work experience.

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CIBIL score

You must have a CIBIL score of at least 750.

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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.

Check Your eligibility for Loan Against Property.

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How much loan you are eligible for?

Eligibility :
Eligibility Criteria :

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:

Complete The Form

Completed appliction form for balance transfer of home loan.

Photo

Applicant's latest passport-size photographs.

Identity Proof

1. Address Proof
2. Age Proof
3. Income Proof

4.Age proof

1. Birth certificate
2. 10th marksheet
3. Driving license
4. PAN
5. Voter ID

Address Proof

1. Aadhar Card
2. Voter ID
3. Driving license
4. Passport

Income proof

1. Bank statements
2. salary slips
3. Form-16
4. IT returns

Letter of Consent

Documents related to existing loan including a letter of consent.

Outstanding Letter

1. sensen Letter
2. Statment of Account
3. List of Orginal Document