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3 Min 14 Oct 2023
how home loan balance transfer works
Highlights
  • Facts About a Home Loan Balance Transfer
  • Benefits of a Home Loan Balance Transfer
  • Eligibility Criteria for a Home Loan Balance Transfer
  • How to Apply for a Home Loan Balance Transfer?

What is a Home Loan Balance Transfer?

A Home Loan Balance Transfer is the easiest way to possibly avail of a lower interest rate, thereby saving more over the course of your tenor and managing your EMIs more comfortably. Opting for a Home Loan Balance Transfer is a smart way to get a reduced interest rate.  

Home Loan Balance Transfer is a facility that lets you enjoy an attractive interest rate and other benefits by requesting a transfer of your Home Loan balance amount to a new lender at a reduced cost. Your new lender pays the loan on your behalf, and you repay the loan amount with the added benefit of availing a Top-up Loan, basis eligibility. 

Before you decide to transfer your Home Loan balance, you should have all the necessary information at your disposal to make an informed decision and do what’s best for your financial health.

How Does a Housing Loan Balance Transfer Work?

To apply for a Home Loan Balance Transfer, follow the process given below: 

  1. Once a borrower decides to shift their loan to another lender, the first thing they should do is inform their current lender of their decision.  
  2. Then, your current lender will review the application and provide a no-objection certificate.  
  3. After that, you will have to submit this NOC letter and your Home Loan transfer application to your new lender. The new lender will then require documents to process your application. These documents may include KYC documents, property-related documents, proof of income (salary slips, Form 16, and ITR), business continuity proofs, etc. Then, your new lender will approve your application and open your loan account with them. 
  4. Upon approval, the new lender will pay off the outstanding loan amount to your old lender so that your previous loan account can be closed. Here the borrower will be required to pay a Home Loan Balance Transfer fee.  
  5. Once this is done, you can start your loan journey afresh and start paying your Home Loan EMIs to your new lender. 

Facts About a Home Loan Balance Transfer

Below are the features of a Home Loan Balance Transfer:

  • It lets you migrate your Home Loan balance to a new lender who offers better loan terms and benefits
  • You also stand to benefit from a sizeable Top-up Loan, which helps you meet expenses that may or may not be related to a property.

Additional Read: Things You Need To Know Before Foreclosing Your Home Loan

Benefits of a Home Loan Balance Transfer

With attractive interest rates, a Home Loan Balance Transfer offers:

  • Lower Home Loan EMIs
  • A sizeable Top-up Loan
  • A flexible repayment tenor
  • No part-prepayment and foreclosure charges**

**Valid for individual borrowers with floating interest rate Home Loans

Eligibility Criteria for a Home Loan Balance Transfer

Before applying, you should fulfill the eligibility criteria for a Home Loan Balance Transfer. 

  • You must be a salaried, professional, or self-employed individual with a record showcasing timely payment of the EMIs on your Home Loan to date 
  • It is ideal to ensure that you have a strong credit score before applying for a Home Loan Balance Transfer

How to Calculate Savings on a Home Loan Balance Transfer?

Borrowers can use the Bajaj Housing Finance Home Loan Balance Transfer Calculator to efficiently calculate the savings they stand to make if they switch their lenders. Here’s how to use it: 

  1. Select your existing Home Loan lender
  2. Select your property location
  3. Select the start date of your Home Loan
  4. Use the slider to select your Home Loan disbursal amount
  5. Use the next slider to select your repayment tenor
  6. Select your current interest rate next
  7. Use the last slider to select the new Home Loan interest rate that is offered to you

The loan window calculates the savings you can make if you transfer your balance on the same terms and your Top-up Loan eligibility. 

Also Read: Reasons to Opt for Home Loan Refinancing 

How to Apply for a Home Loan Balance Transfer?

Here is a step-by-step breakdown of the Bajaj Housing Finance Home Loan Balance Transfer application process to guide you:

  1. Visit the Home Loan application form
  2. Select your employment type and your Home Loan type
  3. Provide other KYC details, such as name, PIN code, and mandatory documents such as PAN or Form 60
  4. Provide income details
  5. Select your current Home Loan lender
  6. Submit your Home Loan Balance Transfer application successfully

A Bajaj Housing Finance representative will be in touch with you shortly.

*Terms and conditions apply

Additional Link: Can I Apply for a Second Home Loan?

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DISCLAIMER:

While care is taken to update the information, products, and services included in or available on our website and related platforms/websites, there may be inadvertent errors or delays in updating the information. The material contained in this website and on associated web pages, is for reference and general information purposes, and the details mentioned in the respective product/service document shall prevail in case of any inconsistency. Users should seek professional advice before acting on the basis of the information contained herein. Please take an informed decision with respect to any product or service after going through the relevant product/service document and applicable terms and conditions. Neither Bajaj Housing Finance Limited nor any of its agents/associates/affiliates shall be liable for any act or omission of the Users relying on the information contained on this website and on associated web pages. In case any inconsistencies are observed, please click on contact information.

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