No borrower would leave a chance to see for a lower your loan repayments even when there are smarter options. We always keep looking for the market or banks providing better schemes for home loan balance transfer. However, many people have little knowledge about what exactly this transfer process is. What Exactly is Balance Transfer of Home Loan? To explain this, suppose you have home loan of Rs 15 lakhs availed for 15 years. After 5 years, the amount remaining Rs 10 lakhs. This is the outstanding balance. With home loan balance transfer it means you are transferring the loan from one bank to another. So How You can Benefit with this Balance Transfer Loan-
Increase in the Home Loan Tenure- When you transfer the balance home loan, you get an extension of home tenure. This can be further beneficial when your income has scaled up. Reduction in Interest Rate- This is the biggest benefit the borrower can have. You will definitely look for a bank that offers the lowest interest rate. Even the smaller reduction of 0.30 to 0.50% would be a huge saving. Reference Read: Extending Home Loan Tenor with Balance Transfer Facility
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AuthorAman Khanna is an experienced financial advisor who is well known for his ability to foretell the market trends as well as for his financial astuteness. He has an MBA in finance from Toronto University as well as years of experience delivering seminars on sound financial practices and debt management. |