Top 5 Lenders for Home Loan Balance Transfer

Home loans are long-term loans for a tenure ranging up to 30 years, and hence our significant portion of income goes towards paying the home loan EMI’s and interests. Having considered that, it is always advisable to choose the lending institutions for getting a home loan carefully. It would be wise to decide about a housing loan lender based on parameters like home loan interest rates, other charges like processing fees, prepayment fees and procedure of getting a home loan. If you have already chosen the best institutions on the said parameters, it is commendable; however, if you haven’t, you still have ways to make up for your mistake. 

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Choosing home loan balance transfer: Well, who wouldn’t want to pay lesser EMI’s on their loans. A home loan balance transfer is one of such methods to reduce the cost of EMI’s of the loan. It is a facility provided by banks and financial institutions to pay the outstanding balance of your home loan to another institution at a lower interest rate. Another good part is you can also get additional benefits like top-up home loans.

What are other benefits of home loan balance transfer:

• As you have already submitted documents with the existing bank to get a home loan. You don’t need to submit documents to the new lender.
• It is a misconception that transferring the loan to another institution will impact your CIBIL or credit score negatively. However, a home loan balance transfer does not affect your credit score.

Top lenders for home loan balance transfer:

State Bank of India: Based on the interest rate, SBI bank can be considered as one of the top lenders for a home loan balance transfer. It provides a home loan at 7.35% along with a processing fee of 0.20% for a tenure up to 30 years. You can also get a top-up loan depending on your loan amount and eligibility.

Bank of Baroda: Presently, Bank of Baroda provides the lowest interest rate for home loan at 7.25%. The minimum amount for processing fees for home loan transfer is Rs. 10,030. You can get a home loan for up to 30 years. Further, the rate of interest for BOB is linked to external benchmarking rate RLLR.

 Citibank: You can also consider Citibank as one of the top lenders for a home loan balance transfer as it does not charge any processing fees on home loan balance transfer. Also, the rate of interest on a home loan is 7.50% pa. You can get a home loan from Citibank for 25 years.

Central Bank of India: It also provides home loan at a lower interest rate of 7.25% for a tenure ranging between 5 years to 30 years. The processing fees for a home loan is 0.50% of the home loan, and the maximum amount that you need to pay as a processing fee on your home loan is Rs. 20,000.

HDFC Bank: Based on the interest rate and processing fees, HDFC bank can be considered as another of the top lenders for a home loan balance transfer.  You can get a home loan balance transfer at 7.50% rate of interest for a tenure of 30 years. The minimum amount that you need to pay as processing fees for a home loan is Rs. 10,000.

Conclusion: Before deciding about home loan balance transfer, you must compare the interest rates of different lending institutions along with other charges like processing fees, legal charges etc. Also, you need to ensure that the total costs of switching do not exceed the present cost of the home loan. You can also negotiate with the existing lender to get the loan at a lower interest rate.

Summary:Top 5 Lenders for Home Loan Balance Transfer

A home loan balance transfer is one of viable methods to reduce the cost of EMI’s of the loan. It is a facility provided by banks and financial institutions to pay the outstanding balance of your home loan to another institution at a lower interest rate. Another good part is you can also get additional benefits like top-up home loans.

Top lenders for home loan balance transfer:

State Bank of India: It provides a home loan at 7.35% along with a processing fee of 0.20% for a tenure up to 30 years. You can also get a top-up loan depending on your loan amount and eligibility.

Bank of Baroda: Presently, Bank of Baroda provides the lowest interest rate for home loan at 7.25%. The minimum amount for processing fees for home loan transfer is Rs. 10,030.

 Citibank: It does not charge any processing fees on home loan balance transfer. Also, the rate of interest on a home loan is 7.50% pa. You can get a home loan from Citibank for 25 years.

Central Bank of India: It also provides home loan at a lower interest rate of 7.25% for a tenure ranging between 5 years to 30 years. The processing fees for a home loan is 0.50% of the home loan.

HDFC Bank:  You can get a home loan balance transfer at 7.50% rate of interest for a tenure of 30 years. The minimum amount that you need to pay as processing fees for a home loan is Rs. 10,000.