With the latest changes in the lending system of financial institutions, many borrowers want to shift from one lender to another to avail lower interest rates under the MCLR regime. The housing loan balance transfer is one such facility that allows individuals to shift their outstanding loan amount from one lender to another offering lower interest rates and consequently pay lower EMIs.
Documents required to avail the loan balance transfer facility
If you are looking to avail a home loan balance transfer facility, you need to furnish the following documents -
A letter of consent from your existing lender with respect to the transfer of your home loan.
A letter of foreclosure. This is the letter your existing lender will provide once your balance transfer process is complete, and the new lender has cleared off the outstanding debt amount. This letter states that there is no outstanding credit amount and the loan has been foreclosed on a specific date.
A no-objection certificate stating that your existing lender has no issues with loan takeover.
Home loan statement.
Property documents.
Documents required for home loans, to be submitted to the new lender including KYC documents, proof of income, salary slips, etc.
Apart from these, you will also need to submit other documents as required by your lender. Make sure you check the list of all the required documents to make sure there are no hassles in the process of housing loan balance transfer.
