Balance Transfer: The most common ways to reduce interest rates. Balance transfer of a loan happens when the entire unpaid principal loan amount is transferred to another bank for a lower rate. While Balance transfer customer can avail a benefits to top-up loan for his other financial needs subject to market value of the property and customer repayment capacity.
Any salaried, self-employed professional or self-employed non-professional with an outstanding Home/LAP loan which has been regularly serviced can avail for a home/LAP loan balance transfer. Though all loan Banks/NBFCs have different criteria, few basic ones are as follows:
You must be of Indian nationality and of an age 21 to 60 years. Whereas, self-employed individuals are eligible for the transfer up to 65 years.
Your credit score should not fall in the run-up to your loan transfer application. Irrespective of your credit score during the initial loan application, if the score dips by the time of transfer, banks might reject your application for refinancing.
There should not be any deviation in the property which was funded by the current lender.
You should either be employed by your current organization for a certain number of years or your company should have been operating for a time period specified by the lender. This period is generally 2 years.
You should have some monthly repaying capacity or the required minimum salary.
Some banks may also require a minimum gross family income specified by the lender.
1. Avail a lower interest rate.
2. Can avail top-up loan also while availing Balance Transfer with almost same interest rate.
3. Top-up loan can be use for any other financial needs like Child higher education, medical treatments, child marriage, Home improvements, dream vacation and financial support for your business etc.
4. Your can balance transfer with top-up any of your loan like Home loan, Loan against property, Business loan etc.
Documents Required Balance Transfer (Can be downloaded from here )
For salaried individuals:
Passport Size colour photograph for borrower and co borrower.
Proof of identity and residence proof such as Aadhar Card, Voter ID Card, PAN Card, Passport.
Salary slips of past 3 months.
Latest Form-16 issued by current employer.
Six month salary credit bank statements.
A cheque covering the administrative costs/processing fees incurred by the bank in processing the application.
For Self-employed Businesspersons:
Proof of identity and residence proof
Educational qualification certificates, degrees, diplomas, and other academic credentials
IT Returns of the three years preceding the one in which loan is applied for.
Bank statements of six months preceding the one in which loan is applied for
For Self-employed Professionals:
Identity and Address proof documentation
Certificates that prove your academic qualifications/credentials
All registration/licensing certificate pertaining to your profession
Business existence proof/business profile details
Previous 3 years' balance sheets as well as Profit & Loss Statement of the company.
Acknowledged Income Tax statements of the company and self for previous 3 years
Last 6 months' bank statement.
B. Property Documents
Latest Sale Deed with all the previous link documents.
Building sanction plan and Proceedings.
Latest Property tax receipts.
Layout copy, land use Certificate and LRS copy(for Open Land only).
C. Documents from the existing lenders.
List of Original Documents(LOD),
Loan track record/ loan statement of account,
Loan Foreclosure letter.
Calculate the loan amount that you will be eligible for and its free.
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