What is Home Loan Balance Transfer?

When you opt for a home loan balance transfer from one bank or financial institution to another, you are required to submit some documents to determine your financial stability and creditworthiness. Here is a snapshot:

• Salaried
• Self-Employed

Document Type	Salaried
Application Form
Identity Proof PAN (Mandatory) Voter ID Passport Driving Licence Aadhar Card
Address Proof Passport Voter ID Driving Licence Aadhar Card
Income Proof Salary Slip/Certificate Form 16/ITR Bank Statement
Property Documents Copy of complete chain of property documents (as applicable) Copy of approved property plan (if available)
Other Documents List of paperwork from a lending institution for a balance transfer Foreclosure Letter from the previous lender Documents related to running loans along with the last 6 months bank statements

Document Type	Salaried
Application Form
Identity Proof PAN (Mandatory) Voter ID Passport Driving Licence Aadhar Card
Address Proof Passport Voter ID Driving Licence Aadhar Card
Income Proof Salary Slip/Certificate Form 16/ITR Bank Statement
Property Documents Copy of complete chain of property documents (as applicable) Copy of approved property plan (if available)
Other Documents List of paperwork from a lending institution for a balance transfer Foreclosure Letter from the previous lender Documents related to running loans along with the last 6 months bank statements

Interest rates play a crucial role when evaluating a loan. Higher interest rates on home loans can increase monthly expenditures in EMI payments. Therefore, it becomes essential to choose a lender that offers reasonable and cost-effective interest charges to ensure a more manageable financial burden.

A borrower can avail of the home loan balance transfer at attractive and low-interest rates.

Fees & Charges For Home Loan Balance Transfer

The home loan balance transfer charges include a processing fee and other associated charges applicable to home loans and secured business loans. For loans up to ₹5 Lakh, an additional charge of ₹2500 is taken as part of transaction/legal handling services.

Before you apply for a balance transfer, here is an easy checklist for you to follow:

• Negotiate: Before changing your lender, try negotiating with your existing lender for the interest rates.

• Check credentials: Make sure to do a thorough check on the attractive interests offered.

• Calculate the cost of home loan balance transfer: Take note of all the fees involved and then evaluate the final costs.

• Credit rating: Keep a check on your credit rating to know if you are eligible.

• Terms and conditions: Read the T&C thoroughly.

The process to apply for a balance transfer is simple, quick and convenient. All you have to do is follow the below-mentioned simple steps:

• Step 1: Apply here to start the process

• Step 2: Fill in your details carefully, including your name, mobile number and property location

• Step 3: Once you fill out this form and submit it, a dedicated representative from IIFL Home Loans will get in touch with you in no time

• Step 4: Once contact is initiated, the representative will assist you with the product information and the detailed application form

• Step 5: After this, you will be required to submit the detailed application form providing your details such as income, employment and existing property details

• Step 6: Once you do this and we receive your application, your application will be processed without delay. Post-approval, you will be required to pay your processing fees online

• Step 7: Once you are done with this, you will be required to submit the required documents online

Your repayment schedule plays an important role in your loan. Therefore, it is important to make the right decision and not be hasty about it. Here are the few modes via which you can settle your loan repayment:

Step-up repayment

This method involves borrowers starting payments with a smaller amount and gradually increasing them, as your career progresses.

Step-down repayment

This mode of repayment involves larger EMI payments, to begin with, that gradually become smaller over time. This approach directs more of the payments allocated towards the principal, enabling borrowers to pay down the loan faster as they progress through the repayment period.

Prepayment

This method allows the borrower to repay the entire loan, either partially or fully before the loan tenure. This reduces the EMI payments but might entail some prepayment penalties depending on the lender’s policies.

Late repayment

Some lenders might allow you an EMI holiday, giving you a temporary break from paying the EMIs. This allows financial relief during the initial stage. However, the deferred interest and EMI need to be paid later on.

Fixed and flexible installment plan

In a fixed EMI plan, your EMI remains constant for a fixed period. This ensures you are safe from market fluctuations if the interest is likely to rise. At the same time, in a floating EMI plan, the EMI fluctuates as per the market.

Lump sum repayment

This method is handy if you have a large chunk of cash and want to get rid of your debt as early as possible. Your payment will first be adjusted for the interest and then go toward the loan principal.

Balloon repayment

This is a lump sum repayment method, but your installments are scheduled at fixed intervals during the tenure.

Linking your loan and savings account

It is a good way to reduce the interest liability. The higher the funds in your account, the lower the interest you owe.