The necessity of taking a home loan has risen because of the increasing prices of houses. However, these loans have a high rate of interest, and most of the people feel EMI as a burden. There are instances when people take a home loan but do not want it to continue for a long time with the same lender.
Then comes home loan transfer into the picture, which is a convenient option for people falling in middle and low-income groups. Here is all that you must know about this facility: -
Reasons Behind the Transfer of Loan Balance
- Not getting a good service from the existing lender
- Interest rate is higher as compared to the prevailing market rate on similar kind of home loan
- Too many additional charges levied by the lender
- Monthly EMI is too high, and the lender is not providing you with an option to get it changed
- The tenure of the loan is now not suitable due to your current financial situation
Benefits of Home Loan Transfer
- You can get the loan transferred to a lower rate of interest
- The EMI amount will reduce and will not put too much burden on your monthly budget
- You can enjoy better services from the new lender
- The tenure can be adjusted as per your convenience
- There can be additional facilities like reduction in foreclosure charges, online updates related to the loan, online facilities, smart banking, etc which might not be offered by your previous lender.
However, you must ensure that you have a cost-benefit while you are transferring the loan or you will be at a loss.
Also Read: Understand – Why Home Loan Balance Transfer Is Beneficial?
