Home Loan Balance Transfer

The process of transferring the existing principal loan amount on your new house to a new bank is called a home loan balance transfer. It is a way of reducing interest rate payments. Balance transfers are recommended during the early years of your home loan tenure if your lender’s interest rate is comparatively higher than others in the market. You can also do a balance transfer to shift between floating and fixed interest rates and get a higher amount with a loan top-up.

If you’re a loan borrower with an existing home loan from another HFI/bank where you have a good payment track record of at least one year, you can opt for a home loan balance transfer from Piramal Finance.

If you have been regular in your EMI payments and maintain good records with your lender, you stand a chance of resuming your EMI payments with a new bank at a lower interest rate. You also have the added advantage of taking a loan top-up, which is an additional loan amount the new bank will offer which can increase your tenure.

Yes, under the Income Tax Act of 1961, the home loan bank transfer scheme entitles you to tax benefits on the interest and principal amounts. Since the benefits fluctuate and change every year, it’s essential to consult our loan counselor for details on the tax benefits that you can get from the home loan transfer.

Yes, with the home loan balance transferred to a new bank, you can combine your other home loan installments as one to avail the benefits of lower interest with the new bank.

The lender will have to assess your home loan eligibility again, so the process duration usually ranges from 7 days to 3 weeks.

The process for transferring the balance is simple:

You can switch your home loan to another lender even if it has been partially disbursed. You will be able to transform your partially disbursed into a fully disbursed loan. You can also change your pre-EMI into an EMI

You are also paying a substantial interest rate because, allegedly, it is determined by the standard rate rather than the MCLR or the Marginal Cost of Funds Rate. This must be transformed into an MCLR rate. It is best to switch to the new institution with the entire loan balance if they offer a lower MCLR than the existing bank does since it has a reduced interest rate.

You will have to bear a processing fee, a part-payment/ pre-closure charge, and other fees for transferring your home loan to Piramal Finance. You can obtain details about all the charges by clicking here.

Struggling to manage your existing EMI payments? Many people face a new challenge every month to make timely EMI payments, which affects their peace of mind and happiness levels. A balance transfer from your existing loan to one with Piramal Finance can ensure that you remain creditworthy throughout the tenure of your home loan. It can provide peace of mind by helping you navigate through challenging times at a more comfortable pace.

We at Piramal Finance always advise our customers in Bharat to consider the balance transfer fees and processing charges while refinancing their home loans. If you find the interest rate of the other bank, along with the extra charges, to be less and cheaper than your existing loan, it’s your go-to signal to refinance the loan.