Loan Process Guides

What is the process of balance transfer from an existing bank?

What is the process of balance transfer from an existing bank?

We understand that the term Balance Transfer can be slightly confusing. However, what it essentially means is that one can transfer an existing home loan with outstanding balance of a loan from one bank to another bank. The main reason why people choose to transfer balance is to save interest on the loans and reduce the number of EMIs as one is able to make a switch to a personal loan with a low rate.

Benefits of balance transfer:

There are many benefits to transferring balance from one bank to another that a borrower will experience. Here are a few of them:

  • The borrower can get a lower interest rate  thereby reducing the financial burden.  
  • When one transfers balance from one bank to another, then one can also avail a top up loan in order to pay off high cost credit card dues or even other expenses like travel, vacation or even medical expenses.

To initiate the transfer, follow the below home loan transfer procedure:

  • Start by going to the particular bank’s website
  • There, check out the terms and conditions listed with the interest rate and the processing fee as well.
  • If everything looks good, proceed by applying for the transfer.
  • Fill in all the required fields in the application and once you have completed the form you will then be able to view the loan offer.
  • Now to finish everything off, pay all the fees and then upload all the necessary documents.
  • Now all you have to do is finish the application and then wait for the approval from the bank.

A home loan balance transfer procedure would require one to have the below stated documents:

Things to remember in the home loan transfer procedure:

What a person needs to keep in mind when one is looking to refinance a home loan are the processing fee and the transfer charges of the loan as well. When you do apply for a new bank’s balance transfer, have a look at the interest rates of the banks, and only after the additional charges combined happen to be cheaper than your current bank, decide to make the switch.

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