Home Loan Balance Transfer

KYC Documents

Proof of Identity & Address

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Income Documents

Proof of Income

• For Salaried

  • Last 3 months salary slips
  • Form 16
  • Bank statements from the previous six months and pay stubs
  • Documentation of the collateralized property

• For Self Employed

  • ITR for the previous two years, with computation
  • CA audited financials wherever applicable
  • 6 months primary bank statement

Property Documents

Land & property related documents

• Property-Related Documents

  • Stamped agreement of the sale / Sales Deed or the letter of Allotment
  • NOC from the builder / housing society
  • Possession Certificate
  • Detailed Construction cost estimation
  • Bank Account Statement
  • In case of Constructed Apartment - Occupancy Certificate

Co-applicants

Co-applicant is mandatory. Additionally, Woman co-applicant is mandatory in certain cases

Co-applicant can be spouse or any first blood relative like parents, siblings, children who hav attained age of maturity (s.t income-ownership grid)

All co-owners of property should be on loan structure

Friends cannot be co-applicants (allowed only if they are coming in the capacity of Partners / Directors / Shareholder)

Passport Size photographs

What is a 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.

Who Can opt for a Home Loan Bank Transfer?

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.

What are the advantages of a home loan balance transfer?

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.

Home Loan Bank Transfer: Does It Avail of Tax Benefit?

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.

Is it possible to merge more than two loans?

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.

How long does a home loan balance transfer take?

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

What is the balance transfer process?

The process for transferring the balance is simple:

• Request your current lender for the documents to refinance the loan.
• Get the consent letter and document from the present lender and submit them to the new lender.
• Transfer the outstanding amount to the new lender.
• Closure of the old account. Future payments will be made to the new lender.
• The old lender will hand property documents to the new lender, which marks the end of the process.

Can I transfer a home loan before full disbursement?

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.

What are the charges to transfer a home loan to Piramal Finance?

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.

Why You Need to Transfer Your Home Loan

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.

• Once you refinance your home loan, you can reduce the interest rate.
• This step will either keep the EMI the same while shortening the loan tenure or keep the loan tenure the same while reducing the EMI amount.
• Conclusively, the overall cost of your home loan will reduce by transferring it to another bank.

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.