What is a Home Loan Balance Transfer?
A Home Loan Balance Transfer allows you to move your existing loan balance to a new lender. If you have an existing Home Loan, you can use the balance transfer facility to enjoy a more competitive interest rate and better repayment terms.
You can transfer your existing Home Loan balance to Bajaj Housing Finance and secure a competitive Home Loan Balance Transfer interest rate starting as low as 7.60%* p.a. for a salaried applicant. In addition, you can also avail of a sizeable Top-up Loan and benefit from prompt customer service. The Top-up Loan can be used to finance any housing-related requirements.
We offer simple eligibility criteria and minimal documentation to make it easy for you to transfer your Home Loan balance.
Features of Home Loan Balance Transfer
Sizeable Top-up Amount
When you transfer the balance on your existing Home Loan to Bajaj Housing Finance, you have the option to avail of a sizeable Top-up Loan, which you are free to use for any housing needs you may have.
Part-Prepayment and Foreclosure Facility
Individuals with a housing loan on a floating interest rate face no prepayment or foreclosure charges should they choose to pay off their loan before the end of their tenure. However, note that this may change for individuals and non-individual borrowers who have availed of a loan for business purposes.
Flexible Repayment Tenure
Bajaj Housing Finance offers applicants the choice of a long repayment tenure to ensure comfortable repayment.
Minimal Documentation
A Home Loan application can get lengthy and tedious. To make sure that applicants get the quickest and easiest route to their dream home, we keep our documentation requirements minimal.
Online Account Management
Our customer portal allows you to access the details of your Home Loan with Bajaj Housing Finance anytime.
Online Home Loan Calculators
Before opting for a loan, you need to calculate your Home Loan EMI, eligibility, and other details. For this, we offer tools like the Home Loan EMI Calculator.
Integrated Branch Network
We have a network of branches all over the country. If you are looking for hands-on assistance, visit one of our branches.
Calculate Your Home Loan Balance Transfer Benefits
Benefits of a Housing Loan Balance Transfer
There are various benefits of transferring a Home Loan.
- Lower Interest Rates: One of the main benefits of this facility is the chance to avail of a lower Home Loan Balance Transfer interest rate as compared to the existing interest rate on your Home Loan. This can help you save more during repayment, making your EMIs easier to manage. This can also allow you to pay off the loan sooner.
- Availability of a Top-up Loan: You can also get a Top-up Loan when availing of a Home Loan Balance Transfer. This loan is one that is taken over and above your existing Home Loan amount and comes with flexible end-use. You can utilise it to meet a range of housing expenses. It comes with long repayment tenure and a competitive rate of interest. Together, a Home Loan Balance Transfer and Top-up Home Loan can help you manage your home finances with ease.
- Renegotiation of Loan Terms: A Home Loan Balance Transfer helps you in renegotiating the terms of your Home Loan. This can help you manage your Home Loan better, more cost-effectively and conveniently.
- Better Customer Service and Facilities: You can also consider transferring your Home Loan to enjoy better customer service, be it online account management, digital processes, pre-qualified offers for other financial services, and more. With Bajaj Housing Finance you can manage your loan account anytime and anywhere through our customer portal.
What is the Process of a Home Loan Balance Transfer?
Looking to transfer your Home Loan balance to us? Here’s a simplified breakdown of how the Home Loan Balance Transfer process typically works:
- Start by submitting your balance transfer application to us along with all the required documents. We will verify your documents and assess your eligibility before approving the loan.
- Once the loan is approved, you can inform your current lender about your decision to transfer the loan. You can do this through a formal letter or a balance transfer request form.
- Your existing lender will review your request and issue a consent letter or No Objection Certificate (NOC) if everything is in order.
- Share the NOC and foreclosure letter with us for verification.
Once verified, the outstanding loan amount is paid off to your previous lender. You may have to pay a balance transfer fee at this stage. - After this, your new loan account will be active with us, and you can start paying your EMIs under the new terms.
Eligibility Criteria for a Home Loan Balance Transfer
If you wish to transfer your existing Home Loan balance to Bajaj Housing Finance for competitive interest rates and other benefits, the following are some of the eligibility criteria that you should meet:
For Salaried Individuals
- You should be an Indian citizen (NRIs included)
- You should be between 23 and 62 years** of age
- You should have a minimum of 3 years of work experience with a public/private sector company, or an MNC
For Self-Employed Individuals
- You should be an Indian citizen (resident only)
- You should be between 23 and 70 years** of age
- You should be able to showcase steady income from an enterprise with a minimum vintage of 3 years
**The upper age limit is considered as age at the time of loan maturity. Additionally, the upper age limit for applicants is subject to change, depending on the property profile.
Note that the eligibility requirements are indicative and can include additional criteria.
Documents Required for a Home Loan Balance Transfer
The following documents*** are required to be submitted for a Home Loan Balance Transfer:
- KYC documents (identity and address proofs)
- Mandatory documents (PAN Card or Form 60)
- Photographs
- Income proof documents, Form 16 or latest salary slips (for salaried individuals) / ITR document and P&L statement of the last two years (for self-employed individuals)
- Previous six months’ bank account statements
- Proof of business vintage of at least 5 years (for self-employed individuals only)
***Please note that the list of documents mentioned is indicative. During loan processing, additional documents may be needed. These requirements will be communicated to you accordingly.
How to Apply for a Home Loan Balance Transfer
To apply for a Home Loan Balance Transfer, simply follow the below steps:
- Visit our online Home Loan application form.
- Submit the required details, such as name, mobile number, and select the type of employment.
- Select the loan type you wish to avail of. (Note: You can choose Home Loan Balance Transfer or Home Loan Balance Transfer + Top-up Loan.)
- Enter your net monthly income. (Note: Click the info icon to learn more about the monthly income you need to enter.)
- Enter the PIN code and the required loan amount.
- Click ‘Generate OTP’ and enter the received OTP in the respective field. After entering the OTP, click ‘Proceed'.
- Populate all the financial details as requested and complete the form. (Note: The fields that you need to fill may vary basis your employment type.)
- Click ‘Submit’ to submit the application form.
Housing Loan Balance Transfer: Interest Rates, Fees, and Charges
The balance transfer facility offered by Bajaj Housing Finance comes with an array of advantages that make the experience of transferring your Home Loan balance smooth and hassle-free.
Interest Rates for Salaried and Professional Applicants
Salaried Floating Reference Rate: 15.10%*
Home Loan Interest Rate (Floating)
| Loan Type | Effective ROI (p.a.) |
|---|---|
| Home Loan | 7.49%* to 10.25%* |
| Home Loan (Balance Transfer) | 7.60%* to 10.35%* |
| Top-up Loan | 7.75%* to 10.40%* |
Interest Rates for Self-Employed Applicants
Self-Employed Floating Reference Rate: 16.20%*
Home Loan Interest Rate (Floating)
| Loan Type | Effective ROI (p.a.) |
|---|---|
| Home Loan | 7.85%* to 10.65%* |
| Home Loan (Balance Transfer) | 8.00%* to 10.80%* |
| Top-up Loan | 9.05%* to 10.85%* |
Salaried individuals and self-employed professionals can also avail of Repo Rate linked Home Loans.
In the current monetary system, the Reserve Bank of India uses the Repo Rate as a money market tool to achieve several fiscal goals for the economy. Any increase or decrease in the Repo Rate affects the ROI of all financial lending institutions. The current Repo Rate is 5.50%*.
For a complete list of our interest rates, please click here.
- The Rate of Interest for each loan is determined considering several factors which includes but not limited to, your profile including employment/profession type, age, industry segment and other details, your credit score, overall indebtedness and repayment track record as provided by Credit Information Companies (‘CIC’), cost of borrowed funds by the Company, credit and default risk in the related business segment in which you operate, historical credit performance of similar homogeneous clients, secured or unsecured loan being sought, ticket size/quantum of loan sought, tenure of loan, location delinquency and collection performance, your existing relationship with BHFL and repayment history, your declared and verified income, borrower group financial strength, nature and value of primary collateral security, etc. The above mentioned variables are considered as key underwriting variables for assessment and risk gradation. The aforesaid is dynamic and gets revised periodically as per the existence and performance of the past portfolio, and hence is subject to change.
- Lease Rental Discounting Loans
- Loans Against any Property availed for Business Purpose, i.e., working capital, debt consolidation, repayment of business loan, expansion of business, acquisition of business assets or any similar end usage of funds.
- Loan for purchase of Non-Residential Properties.
- Loan against security of Non-Residential Property.
- Top up Loans for business purpose, i.e., working capital, debt consolidation, repayment of business loan, expansion of business, acquisition of business assets or any similar end usage of funds.
Other Fees and Charges
| Type of Fee | Charges Applicable |
|---|---|
| Processing Fee | Up to 4% of the loan amount + GST as applicable |
| Loan Statement Charges | Nil |
| Interest and Principal Statement Charges | Nil |
| EMI Bounce Charges | Refer to the table provided below for the full break-up |
| Penal Charges | Click here to know about the penal charges |
EMI Bounce Charges
| Loan Amount | Charges |
|---|---|
| Up to Rs.15 Lakh | Rs.500 |
| More than Rs.15 Lakh and up to Rs.30 Lakh | Rs.500 |
| More than Rs.30 Lakh and up to Rs.50 Lakh | Rs.1,000 |
| More than Rs.50 Lakh and up to Rs.1 Crore | Rs.1,000 |
| More than Rs.1 Crore and up to Rs.5 Crore | Rs.3,000 |
| More than Rs.5 Crore and up to Rs.10 Crore | Rs.3,000 |
| More than Rs.10 Crore | Rs.10,000 |
Prepayment and Foreclosure Charges
Individuals with Home Loans linked to floating interest rates pay no additional charges on the prepayment or foreclosure of the housing loan amount. However, this may change for individual borrowers and non-individual borrowers who have loans for business purposes.
For individual and non-individual borrowers with floating interest rate loans for non-business purposes:
| Particulars | Term Loan | Flexi Term Loan | Flexi Hybrid Loan |
|---|---|---|---|
| Part-prepayment Charges | Nil | Nil | Nil |
| Full Prepayment Charges | Nil | Nil | Nil |
For individual and non-individual borrowers with floating interest rate loans for business purposes and all borrowers with fixed interest rate** loans:
| Particulars | Term Loan | Flexi Term Loan | Flexi Hybrid Loan |
|---|---|---|---|
| Part Prepayment Charges | 2%* on Part Payment Amount | NIL | NIL |
| Full Prepayment Charges | 4%* on Principal Outstanding | 4%* on the available Flexi Loan Limit | 4%* on Sanctioned Amount during Flexi Interest Only Loan Repayment Tenure; and 4%*on the available Flexi Loan Limit during Flexi Term Loan Tenure |
*GST as applicable will be payable by the borrower in addition to the prepayment charges, if any.
**Nil for Home Loans closed by borrowers out of their own sources. Own sources refer to any source, other than borrowing from a bank/NBFC/HFC and/or a financial institution.
Note: In the case of dual-rate Home Loans (fixed for the initial period and then floating), the foreclosure/part-prepayment charges will be applicable as per the status of the loan as on the foreclosure/part-prepayment date.
Purpose of Loan
The following loans shall be classified as loans for business purpose:
Differences Between a Home Loan and Home Loan Balance Transfer
A Home Loan is a loan availed of in order to purchase a property. To increase your chances of getting approved for a Home Loan at favourable terms, you need to meet our Home Loan eligibility criteria and provide certain documentation.
A Home Loan Balance Transfer is a refinancing option that allows you to transfer your existing Home Loan balance for better loan terms. Additionally, you can also avail of a Top-up Loan with a balance transfer to fund other housing finances.
Even though a housing loan and a Home Loan Balance Transfer serve the same purpose of financing a property purchase, they still have a few differences. For instance, a housing loan requires property evaluation, and in this aspect, a balance transfer may be easier. But a housing loan balance transfer also requires you to submit all the required documents such as the address, age, and income proofs among others.
You can transfer your Home Loan for a more competitive Home Loan interest rate that can help you save more on your total interest outgo. However, the main aim of the initial Home Loan is to finance the purchase or renovation of a residential property.
When to Consider a Home Loan Balance Transfer?
Here are some scenarios where a Home Loan Balance Transfer can be beneficial:
-
A Lower Interest Rate:
Availing of a Home Loan Balance Transfer allows you the opportunity to negotiate a more favourable interest rate. -
Changed Repayment Tenure:
When you transfer your Home Loan balance, you can seek a shorter or longer repayment tenure, subject to eligibility. -
Need for Additional Funds:
When availing of a Home Loan Balance Transfer, you have the option to avail of additional finance through a Top-up Loan. This amount comes with end-use flexibility and can be used for any housing-related expense.
While a balance transfer offers several advantages, borrowers should calculate potential savings and consider all involved costs.
*Terms and conditions apply.
Home Loan Balance Transfer: FAQs
A Home Loan Balance Transfer is when you transfer an existing Home Loan from one lender to another. The feature helps you obtain lower interest rates, more pocket-friendly terms, and even a Top-up Loan for other housing expenses such as home renovation.
A Home Loan Top-up, or simply a Top-up Loan, is the additional loan you can avail of when you transfer your Home Loan to a new lender. Get a sizable amount as a Top-up Loan by transferring your current Home Loan to Bajaj Housing Finance. The amount comes with flexible end-use, a competitive interest rate, and a long repayment tenure.
Yes, a Home Loan Balance Transfer is a good idea, when you can avail of a new Home Loan at better interest rates than your existing loan. This helps you save on total interest outgo. Refinancing a Home Loan with Bajaj Housing Finance offers you several benefits, such as a Top-up Loan, low interest rates, and long repayment tenure.
A Home Loan Balance Transfer can be availed of by any salaried or self-employed borrower who meets the new lender’s Home Loan eligibility criteria. For a balance transfer loan, you should not have outstanding dues on your existing loan with your existing lender. Connect with Bajaj Housing Finance to get a competitive Home Loan Balance Transfer interest rate.
Bajaj Housing Finance charges a nominal processing fee of up to 4% + GST as applicable.
Avail of a Home Loan Balance Transfer to enjoy the benefits of a low interest rate, manageable EMIs, a longer loan tenure, and a Top-up Loan for housing expenses. You can also consider transferring your Home Loan balance if you are offered attractive pre-qualified offers.
Avail of a Home Loan Balance Transfer only when your savings exceed the other charges, such as processing and documentation fees. Also, consider transferring the loan during the initial repayment tenure as this is the period when you pay most of the EMI amount towards interest.
There is no limit when transferring the Home Loan balance. The loan amount you are offered depends on your profile and the property in question. Transfer your existing Home Loan to Bajaj Housing Finance and get a sizeable Top-up Loan with end-use flexibility.
It takes around 5 to 10 days, in general, to refinance your Home Loan. This timeline also depends on how quickly you get the foreclosure letter and list of documents from your existing lender.
Yes, you can avail of a sizeable Top-up Loan worth Rs.1 Crore* or higher, basis eligibility, along with a balance transfer loan to meet a range of housing-related financial requirements. Get a Home Loan Balance Transfer and Top-up Loan from Bajaj Housing Finance at competitive interest rates, with a flexible repayment tenure.
Home Loan Balance Transfer can have both positive and negative effects on your credit score, depending on how you manage the process. Here are some possible effects:
Positive Effects: Firstly, a Home Loan Balance Transfer can lower your loan amount balance and improve your credit utilisation ratio, which is a key factor in determining your credit score. Secondly, if you transfer your Home Loan to a lender offering lower interest rates, you may be able to save funds on interest charges, which can help you pay off your loan faster and improve your credit score. Thirdly, if you are struggling to repay your Home Loan, transferring the balance to a lender offering better repayment terms can help you reduce your debt obligation and improve your credit score.
Negative Effects: Applying for a Home Loan Balance Transfer will result in a hard enquiry on your credit report, which can temporarily lower your credit score.
While it is possible to use the Home Loan Balance Transfer facility multiple times, paying the processing fee multiple times may not make it a feasible option.
Yes, Home Loan Balance Transfer applicants can get tax benefits as per the old tax regime under Sections 80C, 24(b), and 80EE.
