In order to ease the financial burden, many individuals opt for a home loan transfer for a better rate of interest, customer service etc. Now, many factors come into play while initiating this process.
A home loan is no doubt one of the biggest financial responsibilities of an individual. So therefore, it is vital to consider that you are not bound to just one organization for the overall tenure.
What is a home loan?
A home loan is a facility of credit offered by Banks and Non-Banking Financial Companies (NBFCs) to individuals planning to purchase a new home. Not only this but it also is used to build a house on their land or even for renovation/mantainence purposes.
So when you opt for a home loan, a fraction of the principal amount you borrowed, along with interest, is paid each month as EMI (Equated Monthly Installment. Keep in mind that you’ll gain complete ownership of the property after the loan will end.
What is a home loan transfer?
It is moving your current home loan from one lender to another for a better customer experience, interest rate and many more perks. Individuals rising expenditures with each day passing by, as well as inflation, are the prime reasons why this transfer takes place.
Despite the fact that a loan makes things relatively easy for an individual but undoubtedly, it directly impacts personal finances. So, the loan transfer totally makes sense when the rate of interest is high, and there is a longer tenure left to repay the amount.
How to initiate a home loan transfer India?
Well, there is nothing to worry about, as the overall process is quite easy if you are on the right track. Only five simple steps mentioned below are to be taken into consideration.
Inform your current lender
The first and foremost step here is to inform your current lender that you are seeking a loan transfer and mention all the reasons why you are doing so.
A No-objection certificate is to be collected from your lender. This document is essential as the new lender requires it.
Give all the documents to the new lender
Apart from all the essential documents, you also need to submit loan balance, property papers, and interest statements to your new lender for the transfer process.
Final confirmation from the old lender
Once you give all the documents to the new lender, await final confirmation from the old one concerning the closure. This is very important as it clarifies that the loan contract has ended, as have the terms and conditions governing it.
Lastly, sign a contract with your new lender and do all the formalities. Once done, you are now eligible to pay your next month’s EMI to your new lender.
All-in-all, if you are planning a home loan transfer India, I suggest you go for the home loan offered by Bajaj Finserv. Now, I’m not promoting any brand here but believe me, the rate of interest and customer service they offer is just unmatchable. However, readers are free to use any application as per their suitability.