What is Home Loan Balance Transfer?

Home loan balance transfer is the additional feature provided by financial institutions on instant home loan online as well as home loan offline to release the burden of the borrower. The home loan borrower can transfer the ongoing home loan to another bank that is offering less home loan BT interest rate or longer tenure as per demands. The applicant can shift to another financial institution for a current home loan after completing the lock period. There is no limit on time transferring a home loan balance, but the borrower should keep in mind the credit score.

A home loan transfer is the smart solution for the applicant who wishes to switch to a better offer from another financial institution for a home loan. The loan can be resumed in other applied banks hassle-free. My Mudra is offering a swift balance transfer for a home loan with minimal documentation. Apply online, get the documentation done online, and enjoy a quick home loan balance transfer. The home loan balance transfer can impact the CIBIL score if the borrower opens a new card. CIBIL score is an important factor for a loan, it is therefore important to boost CIBIL score to increase the chances for approval of loan.

When to use Home Loan Balance Transfer?

Home Loan Balance transfer offers various perks to the applicant, like maximizing the tenure or reducing interest rates. The applicant can transfer the ongoing home loan with minimal documentation within a few hours. Mentioned below are the instances where the home loan balance transfer can be a smart decision.

1. Lower Interest rates: The CRR and bank rates are regulated by the Reserve Bank of India from time to time. This fluctuates the interest rates, so if the applicant has information of a potential lender that is offering less interest rate. Then it is ideal to choose for home loan balance transfer.

2. Terms and conditions: The applicant should be aware of all the terms and conditions before opting for the transfer of the balance of home loan. Choose the lender that offers low charges for transferring and make an ideal choice.

3. Higher outstanding loan amount: When the outstanding loan amount is high, it can be beneficial to transfer a home loan from one bank to another. As the loan matures and the principal amount is paid down, a home loan balance transfer can help reduce the applicant's EMIs. Additionally, using a Home Loan EMI Calculator allows you to estimate your new monthly installments in advance, ensuring smarter financial planning before making the switch.

4. Authorization of the property: Check for the points made by the banks on the authorization of the property. Every bank has different rules and regulations, usually, banks authorize the undisputed property and build by a credible builder.

5. Home loan balance transfer and top-up: Opting for the bank that is offering maximum top-up on home loans is a sustainable decision for the borrower.

Eligibility Criteria for Home Loan Balance Transfer

Mentioned below are the detailed eligibility criteria for home loan balance transfer. Before getting to know the home loan balance transfer process, go through the eligibility criteria for home loan transfer. Refer to the points below.

1. Entitled Borrowers:

• Salaried employees: Government / Semi government / PSU / Private / MNCs / Proprietorship /Partnership businesses.
• Self-employed: Proprietor / Partners / Directors Self Self-employed professionals such as a Chartered Accountants, Company Secretaries & Doctors
• Business: Partnership or Private Limited firms engaged in Manufacturing, Servicing or Trading

2. Age:

• Salaried person: The person should be 21 years old at the time of loan application and his maximum age should be 65 years.
• Self-Employed: Applicant must be a minimum of 21 years of age at the time of application and should be a maximum of 65 years at loan maturity.
• Business: Proprietor / Key Partner / Main Director must be a minimum of 25 years at the time of loan application and should be a maximum of 65 years at loan maturity.

3. Income:

• Salaried person: Net monthly salary should be Rs.20,000.
• Self-employed: Gross annual income should be of minimum Rs.3 lakh.
• Business: Annual turnover should be a minimum of Rs.10 lakh.

4. Experience/ Vintage:

• Salaried: Minimum 1 year of work experience
• Self-employed: Minimum 2 years in current
• Business: Business stability/vintage of minimum 3 years in the same business

5. Citizenship:

• Salaried: Individuals with Indian citizenship
• Self-Employed: Individuals with Indian citizenship
• Business: Proprietor / Partners / Directors with Indian citizenship

Documents Required for Home Loan Balance Transfer

Mentioned below is the list of documents required for home loan balance transfer for salaries, self-employed, and business entities. 

Documents Required for Salaried Individuals

1. Identity Papers

• PAN Card
• Aadhaar Card
• Passport (Valid)
• Driving License with Photo
• Voters Identity card issued by the Election Commission of India
• Job Card issued by NREGA duly signed by an officer of the State Government

2. Address Proof

• Aadhaar Card
• Passport (Valid)
• Driving License with Photo
• Voters Identity card issued by the Election Commission of India
• Job Card issued by NREGA duly signed by an officer of the State Government
• Letter issued by the National Population Register containing details of name and address

3. Income Documents:

• Salary slip for the past 3 months
• Form 16
• Bank Account Statement
• Latest 6-month bank statement showcasing salary deposits.

Documents Required for Self-Employed Individuals

1. Identity Papers:

• PAN Card
• Aadhaar Card
• Passport (Valid)
• Driving License with Photo
• Voters Identity card issued by the Election Commission of India
• Job Card issued by NREGA duly signed by an officer of the State Government

2. Address Proof:

• Aadhaar Card
• Passport (Valid)
• Driving License with Photo
• Voters Identity card issued by the Election Commission of India
• Letter issued by the National Population Register containing details of name and address

3. Income:

• Income Tax Returns for the last 2 years
• Profit/Loss statement and balance sheet for the past 2 years

4. Bank Account statement:

• Operative bank account statement for the latest 6 months.

Documents Required for Business

1. Identity Papers:

• Firm/Company PAN Card
• GST Registration Certificate (If applicable) and Other Applicable Registration
• KYC of Partners / Directors PAN Card and Aadhaar Card

2. Address Proof:

• Electricity bill for owned premises
• Rent agreement for Rented premises
• Passport for Partner / Directors

3. Income Documents:

• Income Tax Returns along with calculations for the last 2 years
• Profit/Loss statement and balance sheet for the past 2 years
• GST Returns

4. Bank Account Statement:

• Running bank account statements for the last 6 months.

Home Loan Balance Transfer Interest Rate and Other Charges

The home loan balance transfer interest rate is mentioned below. Be aware of all the charges and make a smart decision by choosing the best bank to transfer your home loan.

How to Apply for Home Loan Balance Transfer?

Apply for a home loan balance transfer easily with My Mudra. Follow the steps mentioned below and get your home loan at the lowest interest rate or transfer the remaining balance of your home loan.

1. Visit the website of My Mudra and go to the section of Home Loan.
2. Click on the Apply Now Button and fill in the information.
3. You will instantly receive a call from our executive who shall guide you through the process.
4. Instant home loan transfer process is possible with My Mudra.

Conclusion

A loan is not a burden on your shoulders it is a planned decision that can quench your financial thirst and make you stable financially. A home loan balance transfer is the smart way of switching your existing home loan to the bank which offers the home loan with less transfer charges, low-interest rate, and higher tenure of the loan. An applicant can transfer the ongoing home loan after the completion of the lock period. My Mudra, one of the top fintech companies in India is offering home loan balance transfer at your convenience with paperless documentation, lower interest rates, and the highest tenure.

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