What is Home Loan Balance Transfer
Sharmaji: Hello Vinodji. I want to understand more about Home Loan Balance Transfer.
Vindoji : Well Sharmaji, Home Loan Balance Transfer allows the borrower to transfer the existing Home Loan to another Bank or Housing Finance Company at a lower interest rate and other additional services / benefits if any.
Sharmaji: How much of the Home Loan can be transferred?
Vindoji : The borrower can transfer Balance Loan outstanding based on the Home Loan Account Statement or Foreclosure statement, subject to Bank or Housing Finance Company’s internal norms.
The balance transfer loan amount is determined taking into account various factors such as Repayment track of Balance Transfer loan, Repayment capacity, Age, Educational qualifications, Stability and continuity of Income, Number of dependents, Co-applicant’s income, Assets, Liabilities, Saving habits, and more.
Sharmaji: What are the other key eligibility factors to keep in mind?
Vindoji : It is important to maintain a good repayment track record of the existing Home Loan.
Further, for the salaried category, up to the maximum age of retirement or 60 years, whichever is earlier is considered for a Home Loan Balance Transfer Scheme. For the self employed category, the maximum age is 70 years.
Sharmaji: Thank you Vinodji for your guidance on Home Loan Balance Transfer.