Home loan balance transfer or takeover is a financing solution that allows borrowers to maximise loan affordability with better terms of service. The Reserve Bank of India, from time-to-time issues necessary guidelines to regulate such facilities and improve benefits for borrowers.
Following is an elaboration on the home loan balance transfer charges per RBI guidelines to help gain a better perspective of how the facility is regulated by the apex financial institution of India.
A home loan balance transfer involves foreclosing a loan account with the current lender and opening another account with a new lender. It can involve several formalities and documentation, along with additional charges, such as the processing fee, among others.
The RBI guidelines for home loan balance transfer aim to regulate these charges to make the facility affordable for borrowers. As per the RBI guidelines for home loan takeover, any foreclosure initiated on home loans availed of under floating interest rates does not attract any additional charge.
Borrowers may, however, need to pay a prepayment penalty at the rate of 1% to 3% for a home loan balance transfer in case the loan is availed under the fixed-rate system. When opting for a home loan takeover, use the home loan transfer calculator to better assess eligibility and the savings made thereafter.
Along with the takeover of housing loan RBI guidelines, it is also essential to know what a home loan takeover comprises to make the most of this financing facility. A home loan takeover or balance transfer is a facility that allows existing borrowers to switch to a new lender offering reduced home loan interest rates and other improved terms of service.
The facility enables borrowers to enjoy the benefit of reducing market rates and improve their affordability. A home loan balance transfer facility comes with several other attractive benefits:
Bajaj Housing Finance offers competitive rates on the home loan balance transfer facility to make funding affordable for borrowers. Eligible applicants can also avail of fresh loans at attractive rates and lucrative features and benefits.
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Last update on 11-Mar-2021
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