Benefits of opting for home loan balance transfer.
Posted by Anurag Mishra on March 30th, 2017
The amount of home loan involves significantly huge amount, the interest rate at which the home loan is availed is a matter of concern when you take a home loan. Various banks and non banking financial institutions have been providing home loans across India at a lower interest rate which ranges between 9-10%. Even the processing fee for the home loans is minimal which 1-2 % of the loan amount is. Hence, the interest rate is the deciding factor on how affordable the loan will be.
As the amount involved in the home loans is huge the tenure of the repayment is generally more. You can ask the bank which has offered you the loan for a lower interest rate or you can go for home loan balance transfer of the existing home loan where you will shift the home loans to a lesser interest rate. Even a 0.50 % of reduction in the reduction rate can help you save lot of money which can be utilized for other purposes.
What is home loan balance transfer?
Home loan balance transfer is the process which allows you to avail the benefit of lower interest rate offered by the lender. When you have taken a loan you can shift the remaining amount to a lender which is offering comparatively lesser interest rate. This is also known as refinancing. This feature allows the person to avoid paying more for a loan with a higher interest rate and migrate to a lower interest structure offered by another lender.
What are the features of balance transfer?
What are the reasons to apply for balance transfer?
The most important thing you can do is save money when you opt for balance transfer. The difference between the interest rates, the tenure for the repayment of the home loans and the remaining loan amount are the three important factors.
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About the AuthorAnurag Mishra
Joined: December 13th, 2016
Articles Posted: 108
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