Mrs. Nidhi Jain, a Pune resident, was living life on the edge these days! She had taken a home loan 2 years before from a known online home loan financing companies, and everything was smooth. She was paying the EMIs on time, but one visit to her friend Roshni Sahay changed everything.
Roshni had also availed a home loan from a reputed non-banking finance company (NBFC) and paying lesser EMIs. Even her home loan interest rate was lower than that of Nidhi. Hence, Roshni was able to manage her housing loan account well and even could manage her other expenses.
When Nidhi compared the same with Roshni, she found that she is paying more and that’s what is holding her back from not being able to focus on other financial goals. She discussed the same with Roshni who suggested her to opt for home loan balance transfer and pay lower EMIs.
Nidhi followed her advice and transferred her home loan account to Roshni’s NBFC and is happy today as she is managing home loan and other expenses without stress.
If you are still paying high home loan interest rates and feeling the financial blues just like Nidhi, even you can transfer your home loan to a new lender and live stress-free.
Let’s provide you some quick insights on home loan balance transfer and its benefits in brief:
What is home loan balance transfer?
If you are unhappy with your existing home loan interest rates just as the case discussed above, you can switch your home loan account to a new creditor. Yes, if you find that a new lender is offering you an affordable home loan interest rate deal, you can opt for balance transfer and avail reasonable housing loan interest rate, lower EMIs, and many more benefits.
Top up loan facility
Lenders understand that buying a home also brings some unforeseen expenses and that’s where you can avail a top-up loan along with balance transfer at a lower rate. You can expect to borrow up to Rs.50 lakh on a longer tenor and reduced interest rate to help you fulfill your other financial needs.
Part prepayment facility
This facility of the home loan balance transfer lets you prepay any amount not be less than the 3-EMIs’ total. However, there is no limit on the maximum amount and subject to the clearance of your first EMI.
Zero foreclosure charges
During the tenor of your home loan, you get to foreclose the home loan anytime. Lenders usually do not charge any foreclosure charges. You can use the home loan foreclosure calculator available at a lenders’ website to know more.
3 EMI Holiday
You could find many online lenders especially non-banking finance companies (NBFCs) offering you a 3 EMI holiday facility when you do home loan balance transfer. It means that after switching the home loan account, you need not pay home loan EMIs for the next three months. A 3 months grace period is given to home loan balance transfer customers that help them plan or manage their monthly expenditures and gives them a cushion to plan their finances.
Flexi loan facility
The facility lets you pay interest only on the amount that you have utilized out of your total principal figure. Hence, it helps you to pay lesser EMIs.
Online account access
When you do home loan balance transfer, lenders let you manage and access your home loan information online through their digital customer portals. The information helps you know your interest rates, upcoming EMI due dates, how much you have paid and how much more to pay. This information helps you streamline the home loan account without hassles.
The Bottom Line
Why pay a higher home loan interest rate when you can switch your home loan account using a home loan balance transfer and save on your EMIs?
You can do a quick comparison of the home loan interest rates on a third-party website and avail the best deal! Happy home loan management!