What is Home Loan Balance Transfer?

Home Loan Balance Transfer is a facility that allows you to reduce your EMI or interest rate by transferring your outstanding home 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 home loan balance transfer facility when your existing lender is charging a higher interest rate in comparison to what other lenders are ready to offer you.

How to Calculate EMI on Home loan Balance Transfer?

The amount of money you can save will depend on the following factors:
1. Outstanding principal amount of Home loan.
2. Current EMI
3. Existing Outstanding Home Loan tenure.
4. Interest rate
5. Required term (months) to pay off the home loan 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 Home Loan loan Balance Transfer

The main benefit given by home loan balance transfer is interest savings. By taking a home loan balance transfer, you get the facility of the outstanding home loan to another lender who is offering lower interest rates. Of course, you must compare the costs and benefits before taking this facility.

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One bank to another.

Reduce monthly installments and save for your future.

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EMI amount unchanged

Reduce your home loan tenure and settle the home loan in less time.

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Upto 1% Processing Fee

There is usually a processing fee of up to 1% of the transferred home loan amount, payable to the new bank.

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Lower Interest Rates In Market

Avail maximum home loan tenure with reduced monthly instalments.

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Reduced Monthly EMI

Save money with decreased monthly instalments.

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Attractive interest with 30-year tenure

Interest rates that maximise your savings

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Quick processing

Swift transfer of loan

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Minimal documentation

Reduced number of documents for easy home loan balance transfer application

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Top Up Loan

Enhance your home loan with Top Up Loan upto 100%

Compare Home loan balance Transfer Interest Rates of All Major Banks

Home loan balance transfer is important because you can get low interest Rate.

Bank Name Floating Interest Rates Per Lac Emi
SBI Home Loan 6.70% Onwards Rs.645 Onwards Apply Now
HDFC Home Loan 6.70% Onwards Rs.645 Onwards Apply Now
ICICI Bank Home Loan 6.70% Onwards Rs.645 Onwards Apply Now
Axis Bank 6.70% Onwards Rs.645 Onwards Apply Now
PNB Housing Finance 7.35% Onwards Rs.689 Onwards Apply Now
Bajaj Home Finance 6.70% Onwards Rs.645 Onwards Apply Now
IDFC First Bank 6.70% - 8.90% Rs.645 - Rs.797 Apply Now
Indiabulls 8.99% onwards Rs.804 Onwards Apply Now
Tata Capital Home Finance 6.70% Onwards Rs.645 Onwards Apply Now
Equitas 9.50% Rs.841 Onwards Apply Now
Standard Chartered 6.99% onwards Rs.665 onwards Apply Now

Key Points To Keep In Mind While Transferring Home Loan Balance Transfer.

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Tenure unchanged

Reduce monthly installments and save for your future.

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EMI amount unchanged

Reduce your tenure and settle the home 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.

Home Loan Balance Transfer Process

Take the following steps if you wish to avail Home loan balance transfer facility:

Check your existing home loan agreement and make sure it allows home loan balance transfer.


Shortlist a new bank that is ready to offer you a lower home loan interest rate with your comfort.


Compare the cost of home loan balance transfer with expected interest savings from home loan transfer.

Get a letter from existing lender along with documents specifying outstanding home loan balance.


Submit these documents along with all other required documents which required to the new lender.

Once your new lender approves the home loan, they will make payment towards your old home loan and close it.

Eligibility Criteria for Home Loan Balance Transfer

You need to meet certain key eligibility criteria to avail the Home loan balance transfer facility. Eligibility for home loan balance transfer on home loans is mainly dependent on the borrower’s capacity to repay and his/her credit worthiness or credit health. The Home loan eligibility calculator can also help potential borrowers know their eligibility to transfer their outstanding home loan balance. Some common criteria that hold true for home loan balance transfer of home loan to most banks include:

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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.

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 Home loan Balance Transfer

When you apply for home loan balance transfer, it's almost like applying for a new home 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 home loan balance transfer:

Complete The Form

Completed appliction form for home loa Balance Transfer’

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 home loan including a letter of consent.

Balance Transfer Documents

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