Balance Transfer as the name suggests is transferring your existing loan from one institution to another.
We keep you informed on the rate you are paying and the best rate available in the market. This is to ensure that our borrower isn’t paying at extra interest.
Why does a borrower transfer the loan?
Better rate of Interest: This is the primary reason for a borrower to opt for a balance transfer of its existing loan. With ‘NIL’ foreclosure charges on all home loans it is economically viable for a borrower to transfer the loan with little effort of completing the documentation.
Top-up Loan: Second biggest reason for balance transfer is requirement of additional funds over and above the existing loan. With few banks offering Top-up loans at home loan rates, it becomes a very attractive option.
Benefits of a balance transfer:
Lower rate: Transferring a loan to a lower rate can result in huge savings for the borrower. You can use our balance transfer calculator to check the amount of money you save before you opt for a balance transfer.
No Cost: As be the government directive, no institution can charge a fore closure fees on a loan running on a variable rate. Hence, the cost for a borrower on a balance transfer loan is “NIL”
Top-up at Home loan rates: A lot of banks offer a Top-up loan when you transfer your existing loan with them. The top-up loan by most banks is offered at the same rate that of a home loan. You can check our page on “Balance transfer with Top-up Loan” for further details.
Documentation Required for Balance Transfer:
Apart from the list of documents mentioned under our documentation link, following additional documents are required in a BT case: