A home loan balance transfer is a significant financial decision that helps borrowers sail through the high-end expenses related to the construction of their dream house. However, it would be difficult for the borrower to tide over the repayment term if they are levied a higher interest rate on the current loan amount.
In such scenarios, borrowers can conveniently opt for a home loan balance transfer with Bajaj Finserv. and get an affordable interest rate, extended loan tenor, customized repayment choices, etc., making their repayment easy and affordable and helping them save on interest and principal amount. However, before availing of a home loan balance transfer, borrowers should have a well-rounded idea regarding its benefits.
Know the benefits of a home loan balance transfer with Bajaj Finserv.
Borrowers can reap the following benefits by opting for a home loan balance transfer:
- Lower interest rate: The primary benefit of refinancing the outstanding loan amount is to fetch a lower home loan interest rate, which not only helps in reducing the overall cost of borrowing but also lowers the EMI pay-outs.
- Access to top-up loan: Borrowers can get bestowed with a top-up loan, helping them access extra loan amount on and above the existing loan quantum and use it to fund any expenses other than compensating for housing-related costs. For instance, borrowers can use the top-up loan amount to fund medical exigencies, child’s education, etc.
- Revising loan tenor: While availing of a home loan balance transfer facility, borrowers can choose a shorter loan tenor if they want to foreclose the loan amount faster. However, borrowers can choose an extended loan tenor if they are tied with other existing liabilities.
- Receive better terms and services: Refinancing loan amounts with a new lender may help borrowers receive customised repayment options, better customer service, access to online loan management tools and portals, and more.
Borrowers willing to avail this effective refinancing facility must know how a home loan balance transfer works and keep the necessary documents in order.
- Nil foreclosure and prepayment charges: Borrowers with a floating interest rate on existing home loan amount are not levied prepayment and foreclosure charges while opting for a home loan balance transfer facility with Bajaj Finserv. This minimises the loan expenditure and helps borrowers manage other financial obligations efficiently.
- Enhances credit score: Borrowers choosing lower interest rates and better loan terms will be able to manage and repay loan amounts on time, which will, in turn, enhance the credit score.
- Online application: Borrowers opting for home loan balance transfer are allowed to manage their loan status online. They can conveniently apply for this facility online comfortably and keep track of the home loan process, including loan details, due EMIs, etc.
Furthermore, borrowers can opt for a part-prepayment facility, enabling them to repay the loan amount in parts, which helps lower EMI liabilities.
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However, before going ahead with a home loan balance transfer facility, borrowers must know certain things to keep track of while doing a home loan balance transfer. For instance, shifting the loan amount towards the end of the loan tenor will not prove worthwhile. Moreover, borrowers should ascertain that transfer charges are minimum, allowing them to compute the overall affordability of the borrowing.
They can look for the specially-tailored pre-approved offers extended by leading financial institutions like Bajaj Finserv.. These offers are available on a wide range of financial products like home loans, loans against property etc., helping expedite the loan application process and reducing the hassles of documentation. Willing borrowers can check the pre-approved offers by submitting their names and contact details.
To recapitulate, a home loan balance transfer enables existing home loan borrowers to shift their loan amount to another lender, offering better interest rates and other loan terms. However, borrowers willing to opt for a home loan balance transfer must conduct a cost analysis and consider the loan tenor, making an informed decision.