Are you regretting the home loan that you have already taken? You can use home loan transfer online or through a loan app. You can get better interest rates, tenure and loan conditions than the loan previously taken. You can compare different app interest rates and choose your renewal accordingly.
You have to consider a couple of factors before going for a balance transfer, like negotiation potential with the existing lender, your credit score, how the transfer will affect the same and the charges involved in such a transfer.
What is a home loan balance transfer?
A home loan balance transfer is a facility that is available with almost every lender, which allows the borrower to transfer their loan from one lender to another, also known as refinancing. Its most crucial advantage is the value of negotiation that a borrower can hold with its current lender.
The availability of such an option enables you to get a better deal, with or without the same lender. It helps in altering your loan term and even getting better interest rates.
What are the factors affecting Housing loan eligibility?
There are certain factors that play a role in deciding the housing loan eligibility, some of them being:
● CIBIL Score
Your score matters a lot; you will only get a loan if your score is at least 750. Keep in mind that the ideal score is 750 or above.
● Age
You must be of a certain age if you want to get a loan. For instance, a salaried applicant must be between 23 and 62 years old, and a self-employed applicant must be between 25 and 70 years. The upper limit is considered at the time of loan maturity.
● Credit history
An essential factor that plays a significant role in eligibility is your credit history, whether you’ve been a defaulter or repaid your loan on time.
What are the benefits of home loan transfer?
● Low interest rates
The primary purpose of transferring a loan is to preferable interest rates that you get elsewhere. If interest rates had dropped to when you first took the loan, refinancing could help you secure a low-interest rate.
● Altered tenure
You can transfer the balance if you want a tenure renewal. For instance, if you need a tenure change from 30 to 15 years, you can opt for a balance transfer.
● Changing lenders
You can change your lender as and when you require it by doing a home loan balance transfer, if you get a good and sustainable deal elsewhere. If you are dissatisfied with your current lender, you can find a relatively more preferable one and make the switch.
● Debt consolidation
Home loan transfer can also consolidate other debts like credit card debt and help you bring all expenses under one umbrella. This also helps in lowering the overall interest rates and benefits the borrower.
● Top-up loan
You can avail of a top-up loan while you change your lender, as the repayment tenures are long and flexible. These top-ups come with zero end-use restrictions.
How have mobile apps impacted home loan transfer charges?
These mobile apps have made the loan transfer process incredibly convenient and easy to use. You can check your housing loan eligibility through a calculator via the loan app and decide whether or not to proceed with the loan balance transfer.
The home loan transfer charges have reduced with the help of loan apps, the need to physically go to financial institutions has been eradicated, thus saving time and effort.
Which is the best app for home loan transfer?
I used the Bajaj Finserv app for my home loan transfer, and it has been of great help to me as it is a user-friendly and convenient option, among others. The interest rates charged are comparatively meager, EMIs are small, and a flexible tenure is offered.
Conclusion
You need not be dreaded with your current loan arrangement anymore. If you find a better option, make the balance transfer right away.
This option helps you switch and shed your burden by a bit, allowing you to breathe. Home loan transfer charges are minimal; you need to find an appropriate and favourable plan that fits your financial planning goals.