Skip to main content

Home Loan Transfer

 

Frustrated with the bank from which you have taken home loan? This is the case with many of us and home loan transfer is recommended to such individual's. Another term for home loan transfer is refinancing or balance transfer. It is basically transferring the outstanding loan amount (principal loan amount) from one bank to the other of your choice.

When is home loan transfer recommended?

There are many reasons when you should think about transferring a home loan as listed below:

  • One of the main reason why home loan transfer is recommended is when the banks continue to charge higher interest whereas other banks offer the loan at low interest rates. This results in loss to the borrower.\
  • If you think that existing loan tenure is too short then you can ask bank to increase the tenure length but on the other hand reduce the EMI. However if banks do not consider your case, then you can consider a transfer.
  • If you have made EMI payment on time then you can ask the bank to reduce the rate. However if banks deny this, then choose another bank.
  • Service issues with the bank.

But the loan transfer is a win and loss situation for both the banks but a win situation for the customer in the long run. New bank will benefit, since they are getting a new customer and on the other hand existing bank will lose a customer which eventually is loss making for them. However not everything is an easy process as there are many procedures and conditions involved with both the banks as follows:

  • Existing lender: They are most likely to delay issuing the no objection certificate (NOC) or consent letter which states the balance amount on the loan. Remember that getting all the home loan documents is not easy and you should be ready for multiple follow-ups. ECS cancellation and post dated cheques will also be cancelled.
  • New lender: Any credit application i.e. loan or credit card involves rigorous back ground check by the banks. Although getting a new customer especially for a home loan which is highly profit making for the bank, they do not take any risk in providing a loan to a risky person who can become non-performing asset for them. And in order to identify such applicants, banks will check your credit rating with CIBIL i.e. they will gather data for all the credit applications you have taken or have applied to evaluate whether you are credit worthy enough. In addition to this, banks will also check all the legal documents of the property amongst others. If your property is resale one, the more documentation would be demanded by the bank. Apart from these, banks will also consider age, annual income amongst other factors.

Even if you pass the above test, there are further important points you should be aware of and most important being the various charges such as:

  • Processing fees: It can be either a flat fee or 0.5% (ideally) of the loan amount.
  • Legal fee
  • Stamp duty: Ideally 0.1%
  • Valuation fee
  • Documentation fee

Points to consider before moving to another bank:

Nothing comes for free and this applies to home loan refinancing as well. Before you finally decide to move, negotiate with the existing bank. If your repayment history is clear they might accept your conditions in order to avoid losing a customer.

  • Interest rate should not be the only reason for balance transfer and if that is the only reason for the transfer, then do a savings calculation with new and old interest rate along with the above mentioned fees.
  • Also remember to read all the terms and conditions, hidden charges of the new and existing bank.
  • Check whether the interest rate offered is not for only a limited period.
  • If you were unhappy with the service of the existing bank then check whether similar issue exists with the new bank or not. Make use of social media page of the bank.
  • If existing bank, agrees to reduce the interest rate then verify whether it is at no extra cost. And also whether the interest rate is for the full loan tenure and not short term.

Almost every Indian bank offers this facility so go for it and save money.

Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds

Top 10 Tax Saving Mutual Funds to invest in India for 2016 or Best 10 ELSS Mutual Funds in india for 2016

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. Franklin India TaxShield

4. ICICI Prudential Long Term Equity Fund

5. IDFC Tax Advantage (ELSS) Fund

6. Birla Sun Life Tax Relief 96

7. DSP BlackRock Tax Saver Fund

8. Reliance Tax Saver (ELSS) Fund

9. Religare Tax Plan

10. Birla Sun Life Tax Plan

Invest in Best Performing 2016 Tax Saver Mutual Funds Online

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

---------------------------------------------

Leave your comment with mail ID and we will answer them

OR

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

OR

Leave a missed Call on 94 8300 8300

Popular posts from this blog

Post Office Deposits Interest Rates

Best SIP Funds to Invest Online   SIPs are Best Investments when Stock Market is high volatile. Invest in Best Mutual Fund SIPs and get good returns over a period of time. Know Top SIP Funds to Invest Save Tax Get Rich For further information on Top SIP Mutual Funds contact  Save Tax Get Rich on 94 8300 8300 OR You can write to us at Invest [at] SaveTaxGetRich [dot] Com

LIC Leave Encashment Plan

LIC Leave Encashment Plan       Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015 1. ICICI Prudential Tax Plan 2. Reliance Tax Saver (ELSS) Fund 3. HDFC TaxSaver 4. DSP BlackRock Tax Saver Fund 5. Religare Tax Plan 6. Franklin India TaxShield 7. Canara Robeco Equity Tax Saver 8. IDFC Tax Advantage (ELSS) Fund 9. Axis Tax Saver Fund 10. BNP Paribas Long Term Equity Fund You can invest Rs 1,50,000 and Save Tax under Section 80C by investing in Mutual Funds Invest in Tax Saver Mutual Funds Online - Invest Online Download Application Forms For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call --------------------------------------------- Leave your comment with mail ID and we will answer them OR You can write to us at PrajnaCapital [at] Gmail [dot] Com OR Leave a missed Call on 94 8300 8300 --------------------------------------------- Invest Mutual Funds Online Invest Any Mutual Fund Online Download Mutual Fund Application Forms fro

Power of Compounding in Investments

Power of Compounding in Investments Invest Rs 1,50,000 and Save Tax up to Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds. Save Tax Get Rich Top 10 Tax Saver Mutual Funds for 2017 - 2018 Best 10 ELSS Mutual Funds to Invest in India for 2017 1. DSP BlackRock Tax Saver Fund 2. Tata India Tax Savings Fund  3. Birla Sun Life Tax Relief 96 4. ICICI Prudential Long Term Equity Fund 5. Invesco India Tax Plan 6. Franklin India TaxShield  7. Reliance Tax Saver (ELSS) Fund 8. BNP Paribas Long Term Equity Fund 9. Axis Tax Saver Fund 10. Sundaram Diversified Equity Fund Invest in Best Performing 2017 Tax Saver Mutual Funds Online Invest Best Tax Saver Mutual Funds Online Download Top Tax Saver Mutual Funds  Application Forms For further information contact  SaveTaxGetRich on 94 8300 8300 OR You can write to us at Invest [at] SaveTaxGetRich [dot] Com OR Call us on 94 8300 8300

MF SIP Top Up Online

Mutual Fund SIP Top Up Online As your monthly income grows, so should your savings. With this facility, you can increase your existing monthly SIP contributions. This can be done on a half-yearly and yearly basis. And you can top up with a minimum of Rs.500 per installment or multiples of Rs.500 as per your convenience.

Kotak Banking Exchange Traded Fund (ETF)

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300 Kotak Banking Exchange Traded Fund (ETF) Kotak Mahindra Mutual Fund has launched Kotak Banking Exchange Traded Fund ( ETF ). The fund aims to provide returns before expenses that closely correspond to the total returns of stocks belonging to the CNX Bank Index , subject to tracking error. For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call Leave a missed Call on 94 8300 8300 Leave your comment with mail ID and we will answer them OR You can write back to us at PrajnaCapital [at] Gmail [dot] Com --------------------------------------------- Invest Mutual Funds Online Invest Any Mutual Fund Online Download Mutual Fund Application Forms from all AMCs Download Mutual Any Fund Application Forms --------------------------------------------- Best Performing Mutual Funds Largecap
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now