Balance Transfer is a facility offering the customer a choice to transfer the outstanding balance of the loan availed for better terms & conditions. Balance Transfer helps to move from higher rate of interest to lower rate of interest or increase in loan component as Top up.
- Are you paying more EMI/interest than others?
- Do you need additional loan on the existing?
- You want to alter your EMI amount or Loan Tenure?
- Are you not satisfied with your existing bank for any other reason?
If the answer to any of the above questions is Yes, then you may want to go for a Balance Transfer.
How much loan amount is borrowed?
Generally total balance transfer is sanctioned. The maximum loan that can be sanctioned varies among banks and housing finance companies.
What is the fixed rate of interest?
Some HFC’s have fixed rate of interest which means that the interest rates remain unchanged for the entire duration the loan. This basically means that you do not benefit, even if the rates of interest drop in the market.
What is a floating rate of interest?
This is the rate of interest that fluctuates according to the market lending rate.
What is the repayment tenure?
Repayment period options range generally from 5 to 20 years.
How to select the cheapest home loan?
Keep the loan period constant and calculate the total amount paid for the home through the different loan options available.