How to Calculate EMI on Home loan Balance Transfer?
The amount of money you can save will depend on the following factors:
1. Outstanding principal amount of Home loan.
2. Current EMI
3. Existing Outstanding Home Loan tenure.
4. Interest rate
5. Required term (months) to pay off the home loan balance transfer amount at the new
interest rate :
| Particulars | Existing Loan | New Loan |
|---|---|---|
| Outstanding Balance | Rs. 8 Lakh | Rs. 8 lakh |
| Interest Rate (p.a) | 8% | 6.65% |
| Remaining Loan Tenure (Years) | 3 years | 3 years |
| Monthly EMI Payable | Rs. 25,069 | Rs. 24,610 |
| Difference in EMI Payable | Rs. 459 | |
| Total Interest Payable | Rs. 1,02,487 | Rs. 85,972 |
| Wow Total Savings | Rs. 16,515 | |
Compare Home Loan Interest Rates of All Major Banks
An Important component and deciding factor in Home Loan is the Rate of interest. There are
different types of Home Loan Rates of interest
available in the market and before deciding on the rate
you should understand the advantages and disadvantages.
An Home Loan interest rate charged by a lender to a borrower for Home Loan is given,
generally
expressed in percentage. Interest rates are directly proportional to the amount of risk
asssociated with the borrower.
The annual interest rate refers to the rate that is applied over one year. Interest rates
can be applied over different periods, such as monthly, quarterly, or bi-annually. However,
in most cases, interest rates are annual.
Compare Present home loan rate of interest , Home Loan processing fees, Home
Loan Maximum tenure of major
banks like ICICI Bank Home Loan, Axis Bank Home Loan, TATA Capital Home Loan, HDFC bank Home
Loan, SBI Home Loan, Yes Bank Home Loan, PNB Housing Home Loan, and many more
to choose from. We have provided you a table for home loan comparison among the best home
loan in India at the lowest Home Loan interest rate.
| Bank & NBFC | Interest Rates | Per Lac EMI | |
|---|---|---|---|
| SBI Home Loan | 8.55%* Onwards | ₹772 Onwards | |
| HDFC Home Loan | 8.60%* Onwards | ₹776 Onwards | Apply Now |
| ICICI Bank Home Loan | 8.60%* Onwards | ₹776 Onwards | Apply Now |
| Axis Bank Home Loan | 8.60%* Onwards | ₹776 Onwards | Apply Now |
| PNB Housing Home Loan | 8.50%* Onwards | ₹768 Onwards | Apply Now |
| Bajaj Finance Home Loan | 8.30%* Onwards | ₹754 Onwards | Apply Now |
| IDFC First Bank Home Loan | 8.45%* Onwards | ₹765 Onwards | Apply Now |
| Indiabulls Home Loan | 9.00%* Onwards | ₹804 Onwards | Apply Now |
| Tata Capital Finance Home Loan | 8.65%* Onwards | ₹779 Onwards | Apply Now |
| Equitas Home Loan | 10.50%* Onwards | ₹914 Onwards | Apply Now |
| Standard Chartered Home Loan | 8.55%* Onwards | ₹772 Onwards | Apply Now |
Key Benefits of Home Loan Balance Transfer
The main benefit given by home loan balance transfer is interest savings. By taking a home loan balance transfer, you get the facility of the outstanding home loan to another lender who is offering lower interest rates. Of course, you must compare the costs and benefits before taking this facility.
One bank to another.
Reduce monthly installments and save for your future.
EMI amount unchanged
Reduce your home loan tenure and settle the home loan in less time.
Upto 1% Processing Fee
There is usually a processing fee of up to 1% of the transferred home loan amount, payable to the new bank.
Lower Interest Rates In Market
Avail maximum home loan tenure with reduced monthly instalments.
Reduced Monthly EMI
Save money with decreased monthly instalments.
Attractive interest with 30-year tenure
Interest rates that maximise your savings
Quick processing
Swift transfer of loan
Minimal documentation
Reduced number of documents for easy home loan balance transfer application
Top Up Loan
Enhance your home loan with Top Up Loan upto 100%
Key Points To Keep In Mind While Transferring Home Loan Balance Transfer.
Tenure unchanged
Reduce monthly installments and save for your future.
EMI amount unchanged
Reduce your tenure and settle the home loan in less time.
Maximum tenure
Avail maximum tenure with reduced monthly instalments.
Reduced EMI
Save money with decreased monthly instalments.
Home Loan Balance Transfer Process
Take the following steps if you wish to avail Home loan balance transfer facility:
Check your existing home loan agreement and make sure it allows home loan balance transfer.
Shortlist a new bank that is ready to offer you a lower home loan interest rate with your comfort.
Compare the cost of home loan balance transfer with expected interest savings from home loan transfer.
Get a letter from existing lender along with documents specifying outstanding home loan balance.
Submit these documents along with all other required documents which required to the new lender.
Once your new lender approves the home loan, they will make payment towards your old home loan and close it.
Eligibility Criteria for Home Loan Balance Transfer
You need to meet certain key eligibility criteria to avail the Home loan balance transfer
facility. Eligibility for home loan balance transfer on home loans is mainly dependent on
the
borrower’s capacity to repay and his/her credit worthiness or credit health. The Home loan eligibility calculator can also
help potential borrowers know their eligibility to
transfer their outstanding home loan balance. Some common criteria that hold true for home
loan
balance transfer of home loan to most banks include:
Salaried & Self Employed
You must be a salaried employee of any private limited company or public sector undertaking or self-employed with a minimum turnover as per the current policy.
Age
You must be between 21 to 60 years of age.
Minimum Income
You must have a minimum salary of INR 25,000 in case you reside in Mumbai/Delhi or INR 20,000 for rest of India.
Experience
You must have a at least 1 year of work experience.
CIBIL score
You must have a CIBIL score of at least 750.
Terms and Conditions
You can opt for an EMI of a maximum 65%, as a percentage of your income subject to specific terms and conditions.
Fees and Charges of All Major Banks
The list of charges that you need to pay for a home loan are as follows:
- Application Charge/ Initial Processing Fee – Non-refundable
- Processing Fee
- Administrative Fee
- Technical /Valuation Charge
- Legal /Title Charge
- Stamp Paper/Franking Fee on the loan agreement
- Notary Charge
- Property Insurance Charge
- Cersai Charge
- Loan Insurance Charge
| Bank & NBFC | Processing Fee | Prepayment Charges |
|---|---|---|
| SBI Home Loan Transfer | 0.35%* + GST of Loan Amount | NIL |
| HDFC Home Loan Transfer | ₹2000 + GST | 2%* of the O/S Amount + GST |
| ICICI Bank Home Loan Transfer | ₹3717/- Onwards | 2%* of the O/S Amount + GST |
| Axis Bank Home Loan Transfer | 2%* Onwards | 2%* of the O/S Amount + GST |
| PNB Finance Home Loan Transfer | 0.50% + GST of the Loan Amount | 2%* - 5%* of the Amount + GST |
| Bajaj Finance Home Loan Transfer | 2%* Onwards | 2%* of the O/S Amount + GST |
| IDFC First Bank Home Loan Transfer | 1%* Onwards | ₹500 or depends upon the O/S Principal Amount |
| IndiaBulls Home Loan Transfer | 0.50% Onwards | 2%* of the O/S Amount |
| Tata Capital Home Loan Transfer | ₹999 + GST of the Loan Amount | 2%* of the O/S Amount + GST |
| Equitas Home Loan Transfer | 1%* Onwards | 2%* of the O/S Amount. |
| Standard Chartered Home Loan Transfer | 0.5%* - 1%* of the Loan Amount | 1%* - 5%* depending on the 0/S Amount |
List of Documents for Home loan Balance Transfer
When you apply for home loan balance transfer, it's almost like applying for a new home loan. Therefore, you might have to submit all the documents that you may have submitted with the old lender. Take a look at some of the key documents required to apply for home loan balance transfer:
Completed appliction form for Home Loan Balance Transfer
Applicant's latest passport-size photographs.
1. Address Proof
2. Age Proof
3. Income Proof
1. Birth certificate
2. 10th marksheet
3. Driving license
4. PAN
5. Voter ID
1. Aadhar Card
2. Voter ID
3. Driving license
4. Passport
1. Bank statements
2. salary slips
3. Form-16
4. IT returns
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Documents related to existing home loan including a letter of consent.
1. Sanction Letter
2. Statment of Account
3. List of Orginal Document