Steps to Follow for Home Loan Balance Transfer to a New Bank.
Posted by Anurag Mishra on April 6th, 2017
Transferring your home loan balance is an option if you think that you can get the same at a lower interest rate from a new bank than the former. You may transfer the home loan for various reasons (financial causes, unsatisfactory customer service from the existing bank etc.), but doing it the right way is what we are going to explain in the following post.
1. Analyze the Cost Benefits
Here is how you can judge the viability of your home loan balance transfer as per the cost benefits:
2. Obtain NOC from your Current Bank
The second step involves getting an NOC (no objection certificate), from the current bank along with:
It may take a few weeks or less to obtain the NOC. The existing bank may try to retain you from transferring the home loan balance by offering a reduction in the interest rate. Sometimes, you can take this offer and bargain with another bank, and decide on the best deal.
3. Apply for Home Loan Transfer with the New Bank
After receiving all the documents, you can apply for home loan transfer with a new bank of your choice.
4. Bank Checks your Eligibility and Credit Worthiness
The bank evaluates your loan application to decide your eligibility status, and it may enquire you further on details. An extensive background check is maintained for credit approval, and shall include:
5. Submit Documents at the Chosen Bank
Now you have to carry out documentation procedure with the bank you choose. This is done at both ends- with the old and the new bank to complete the switching process.
While all the above-explained process is about a manual home loan balance transfer process all performed by yourself, you can rather opt to get the home loan transfer done from hdfc.com, which helps you to smoothly sail through this process online, without any difficulties.
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About the AuthorAnurag Mishra
Joined: December 13th, 2016
Articles Posted: 108
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