A home loan balance transfer is one of the most efficient ways to reduce housing loan liabilities. However, only eligible applicants who meet these following requirements can avail the benefits of this facility.
Eligibility Criteria
Individuals can qualify for loan transfer facility by meeting these requirements -
- Applicants should either be ready to occupy or has already occupied the property in question.
- The borrower must have paid over 12 loan instalments.
- Applicants must have a high credit score. If one’s credit rating falls between availing a home loan and refinancing it, the balance transfer can be problematic.
- Individuals with a clean credit history and a stable income source are more likely to get their balance transfer application approved and receive better terms of service.
Other than these, lending institutions may require borrowers to have a minimum specified monthly income to benefit from this credit.
Required Documents
Home loan borrowers also need to submit these documents to transfer loan balance -
- KYC documents.
- Proof of address.
- Proof of income like salary slips, bank statement, ITR, registration certificate of business, etc.
- Foreclosure letter from a previous lending institution.
- Copy of crucial property documents.
Note that different financial institutions may require borrowers to meet additional requirements to avail this facility.
Nevertheless, to streamline the process, applicants should determine the qualifying criteria and required documents beforehand. Also, they must find out the accompanying rates and home loan balance transfer charges RBI guidelines in detail to determine whether transferring loan balance will work in borrowers’ favour or not.
They can use the home loan balance transfer calculator to gain better insight into the process. Generally, a balance transfer is highly beneficial during the initial stages of credit repayment, when the interest component remains higher in EMIs.
