A home loan balance transfer is a crucial feature introduced by NBFCs, which aids customers in numerous ways. With easy options for an online balance transfer, any borrower can easily transfer their home loan balance to a different NBFC. In the process, you can avail better features which include revised and more convenient interest rates.
There are numerous advantages which accompany such home loan balance transfers. It is crucial to check a few features before opting for the change in financial institution via transfer.
Rate of interest: One of the most crucial factors to check before transferring a home loan balance to a new NBFC is this interest rate, which mostly decides the change in EMI. One must be careful not to check only the individual rates offered by NBFCs but also to compare the other charges.
Foreclosure options: A very useful way to reduce the interest paid on a home loan is to opt for transfer to a NBFC that has foreclosure options. This facility enables you to clear the outstanding loan amount in one go.
Prepayment options: Another option of paying a lump sum after an online balance transfer, this enables a customer to pay a chunk of the repayment in a single go.
The main features discussed above primarily reduce the overall interest and EMI paid by individuals on their home loans. Consequently, one must carefully check all the details before actually opting for a transfer scheme.
Similar Read: Understand the Benefits of Home Loan Balance Transfer
