Many times applicants tend to opt for Home Loans with a long tenor but having a fixed rate of interest. As a result, when the rate of interest goes down, the benefits are not passed on to them. Also, their requests then, for converting their interest from fixed to floating is turned down. It is quite natural in such cases to feel the need to start afresh with a new lender.
Thankfully, this has been made possible with the introduction of Home Loan transfer. What this means is that applicants can now switch to another lender which can be any financial institution and the balance amount of their loan gets transferred. They can look forward to many benefits, one of the most important of which includes top-up loans.
Some of the other benefits include paying lower interest rates as compared to the former lender, longer repayment tenor, better customer services, drop in the monthly installment amount, and most importantly, the CIBIL score improves.
The process for Home Loan transfer is very easy. First the applicant needs to visit the website of the financial institution from where the balance transfer is to be availed. Next, a few details needs to be filled out in an application form which is online and there is thus no need to visit the branch. Next, a representative will get in contact to collect some more details and collecting the required documents.
The charges involved for Home Loan transfer are minimal but on the bright side you can look forward to better services and the interest rate of your choice with your new lender.