- What is Balance Transfer?
Balance transfer is the process of transferring your existing loan amount to another bank for the better rate of interest. Basically, you are taking a new loan to pay off your previous loan at a lower interest rate, which helps you to save on the EMIs.
- Is it going to help me save more money?
Most of the time it does help people to save more on their EMIs but it totally depends on whether the bank, you are planning to transfer your loan, offers you better interest rate with less charges or not. If you were making your payment on times and your records were good with your previous bank, then the new bank will consider offering you less interest rate.
- How much time it takes to process balance transfer?
it depends on your lender bank but generally it takes around 7 to 10 days. Moreover, it is recommended to apply online as it takes less time.
- When should I consider transferring my home loan?
It is advisable to switch the loan early if you want to save more because later on you would have already paid out an ample amount of interest.
- Is there any possibility that I can get more money when transferring my existing loan?
Yes, borrowing more money at the time of transferring your existing loan is called Top-up. You can apply for top-up along with the balance transfer, thus, you will get more loan and more time to repay it.
- Apart from all the financial, KYC and property documents (in case of home loan and LAP), you need to submit few more documents for balance transfer:
-Repayment track of existing loan
-Foreclosure letter (Balance outstanding letter)