A lot of banks and NBFCs offer Home Loan balance transfer as their USP, and no doubt it is beneficial for borrowers. However, the real question is, how can you really benefit from Home Loan balance transfer? Let's find out the answer:
- First thing first, what is Home Loan balance transfer? If you are not happy with the services or the interest rate by your current lender, you have a unique option to switch your lender. Apply for the switch, pay the processing fee and penalty; and you’re done. New lender, new rates, lesser EMI, and lesser payable amount.
- Now, why do you need a balance transfer? Having a Home Loan means a significant part of your monthly income going towards the repayment of your Home Loan. In such situation, any opportunity to save a bit more from the income can make you happy. With Home Loan balance transfer you can switch your lender and avail better interest rates, introducing a drop in your EMI and total payable amount.
There are many benefits of Home Loan balance transfer like low interest rate. A few are mentioned below:
People apply for balance transfer to get lower interest rate, thus, it should be evident that with Home Loan balance transfer you get lower interest rate.
Your repayment tenor will decrease due to a decrease in your payable amount. In addition, the EMI amount will decrease.
CIBIL score and Credit score remains unaffected.
The new lender might offer better customer service.
You can also apply for a top-up loan and use it for maintenance purposes.