Mr. Subhash Das, a resident of Kolkata, had availed a Home Loan from a leading non-banking finance company 2 years before. Everything was smooth; he was paying the EMIs on time until the time he saw an ad of another lender on TV offering lower rates.
He thought of going for a Home Loan transfer so that he could avail a lower Home Loan interest rate and also apply for an additional top-up loan to cover other needs. He did it and is able to make his loan even more affordable. His loan EMIs have gone down helping him cater to other needs and goals in life.
If you are one of the many Housing Loan seekers who are willing to opt for a Home Loan Balance Transfer, you can do it like Subhash and make your ongoing housing loan affordable.
Let’s provide you four major reasons to opt for a balance transfer!
A Quick Look at Major Home Loan Transfer Reasons!
You can grab many reasons if you decide to switch your Home Loan account to a new lender such as:
- Helps to Cut Down Home Loan Rates
Home Loans run for years and decades, and the baggage of paying Housing Loan rates along with EMI amount could be stressing for borrowers. Thus, even if you are able to bring it down by a margin, it can help you lower down the EMIs and provide relief. That’s the top reason a loan borrower switches his/her loan account from one lender to another. As a result, shifting to a new lender offering better Home Loan interest rates make your loan affordable.
- Assists You Avail Better Home Loan Services
Different Housing Loan service providers may have different services and techniques of asking for penalties and charges. Hence, before going for a balance transfer, assess the services of your current lender. If the existing lender has higher pre-payment charges or can’t give other flexibility, check if your new lender is offering it. You should also check if the new lender offers you online account management of the Home Loan so that you can track its progress right from anywhere and 24/7.
- Gives You Extra Loan Opportunity
Most of the Home Loan lenders offer an extra loan facility in the form of a top-up loan when you switch your account to them. A top-up loan offers you a high loan amount up to Rs.50 lakh which you can use for covering other financial purposes in life. What’s more, the interest rate for such a loan is just 1-2% more than your Housing Loan rates. It also comes with almost a tenor matching your Housing Loan. Hence, you can easily manage it and repay in smaller EMIs and never feel the financial pinch of another loan.
- Changes in your Financial Status
An increase or decrease in your monthly income may affect your ability to manage your EMIs. Hence, if your monthly income has gone down due to any factor or if you have some other obligation to care, you can look for a Home Loan transfer. Yes, when such a situation arrives, you can look for a lender offering lower Housing Loan rates to suit your needs. As a result, a balance transfer can let you pay lower EMIs and better manage a situation. On the other hand, if your income has increased, you can either go for a balance transfer or reduce the tenor of the loan. Reducing a loan tenor helps you pay larger EMIs, but you also keep off paying compounding interest.
The Bottom Line
You just read some vital benefits of switching your House Loan from one lender to another via the balance transfer. If you think that can help you as per your needs and financial status, go for it and make the most of it. Happy Home Loan management!