Posted by anuragmishra in Finance on April 20th Authentic Devin Funchess Jersey , 2017


Those who have taken home loan will easily understand the pinch of huge EMI amount and how a major part of your EMI will only go to the interest on loan at early stages. This is one of the main reasons why most of them think of home loan balance transfer. Home loan balance transfer is a process of transferring existing home loan into another banks or NBFC. This facility is taken usually if the borrower finds better services and lower interest rates at different bank.


In order to opt for this all you need to do is just to fill the Home Loan Balance Transfer application form along with calculating savings on top up and home loan balance transfer. Balance transfer option is chosen by most people as it will lower the monthly installments by paying lower repayment amount. Helps in saving a lot of interest that can be used on other useful things. It offers attractive interest rates that will turn your home loan to be much easier to the pocket and affordable.


Though there are lots of benefits of home loan balance transfer, the process is not as easy as it is considered. Apart from lot of additional formalities on home loan, it is equally important to keep in mind about the below hurdles:


Tedious Process:


The whole process of getting home loan transferred to a new bank is a very tedious procedure. Not many would like to transfer the home loan to different bank considering the procedure and effort required. The real question rises in every mind to judge whether the transfer will be more beneficial than the effort spent on transferring the loan in itself. Firstly the applicant will have to check with the new bank if they do take home loan balance transfer. If there is opportunity Authentic Shaq Thompson Jersey , then the applicant should check with the existing bank what the alternatives, procedure for loan transfer, fees and other charges are. On the basis of the home loan balance transfer has to be applied.


Open-ended Risk for New Bank:


It offers borrower an opportunity to move the existing loan to a different bank with lower interest rate and better services. There is no ownership transferring involved. It simply moves the home loan from one bank or NBFC to another one for more attractive benefits. Lower interest rates will help in increasing the savings.


Repayment of Fees:


As new bank will consider this as fresh loan application Authentic James Bradberry Jersey , along with re-doing the whole procedure, it is equally necessary to make the fee payments once again according to the percentage on outstanding loan amount. This is one of the main factors that should be considered and thoroughly calculated while applying for home loan balance transfer. The fee in itself can vary between 0.5% and 1% on the outstanding loan amount. Only if there is good savings from the home loan balance transfer it is advisable to make use of this option. Also if the home loan is for short tenure, then there will be not much savings if you considered the additional expense that you will have to bear to transfer loan.


Complicated Procedure: