A home loan can help you get your dream home quickly. These secured loans are for a long term and hence can go up to 20-25 years. During the course of this tenure, there is a high possibility that the interest rates can get higher than the one you initially took the home loan. Hence with each passing year, you might pay a higher EMI and might not be in a position to increase your savings.
With Ruloans, you don’t need to worry about such a situation. We have a solution that can help you lessen your loan burden. The solution is a “Home Loan Balance Transfer”.
What is a Home Loan Balance Transfer?
A home loan balance transfer is when you shift your ongoing home loan from your current lender to a new lender.
Why would you use this facility?
It is highly possible that your lender might increase the interest rates and this can affect your monthly EMI. Hence you can look for other lenders who have better deals and are offering lower interest rates. Choose the best lender as per your needs and save a lot of interest money. The lender might also help you with better terms and another facility of a top up loan which you can use to fulfill your short term needs.
What are the steps in loan balance transfer process?
Compare options: Have you decided to take a loan transfer? That’s good. Your first job would be to check the number of lenders in the market and check what interest rates the other lenders are offering. Post this, you can also check the different charges and terms that are being offered. After this, compare all these 3 parameters and choose your best lender.
Negotiate with your current lender: Once you have decided the lender of your choice don’t go right away with the process. Please talk to your current lender first. Explain the terms that another lender is offering. Request your current lender to provide you with these terms. If negotiating with them works, then you save yourself a lot of time and money. If the negotiating doesn’t work then you can shift your loan to the new lender and save money.
NOC from current lender: If you have made up your mind on shifting to a new lender, then your next task in the process would be to get a “No Objection Certificate” from the current lender. Once you get that, you can go ahead with the process and talk to the new lender.
Document collection: Once the process begins, it is important that you get all the property documents, post dated cheques (if any) and any other such documents. This needs to be submitted to the new lender. Either this or else your current lender will transfer these documents to the new lender.
Close your loan with the current lender: Once the new lender gets all the documents, they will pay off the remaining loan amount to your old lender.
Repay your new loan at lower EMI: Since the new process has been completed, you can pay your loan EMI which will be low and save more money.
