You can only transfer your home loan to another bank any time after the lock in period ends for the same. The lock in period for a home loan usually ranges from 6 months to 1 year. You can check with the lender you have borrowed from regarding the lock in period for the same. This process of transferring your home loan to another bank is known as a home loan balance transfer and can help you save on EMIs in the long run.
To apply for a home loan balance transfer, you can speak to the executives of your current bank where you have taken a home loan from and ask for a no objection certificate for the home loan balance transfer. Your current bank will then provide a No Objection Certificate (NOC) along with the details of your present outstanding home loan amount. The No Objection Certificate and outstanding details must then be submitted to the bank you wish to transfer your home loan to. There is generally a small processing fee that must be paid for the home loan balance transfer. Your current bank will then clear all your payments and your further EMI payments will need to be made to the new lending bank you have transferred your home loan to.
A home loan balance transfer is very advantageous if the interest rate difference is very vast and if you have a long tenure for the home loan left. If the interest rates vary mildly or if your loan tenure is going to end soon, then it might not be very advantageous as you will need to pay a processing fee and other small charges, thereby increasing the cost of the home loan balance transfer.
Documents needed:
1 ID proof
• Aadhar card
• Passport
• Voters ID
• Driver’s License
2 Address proof
• Aadhar card
• Passport
• Voters ID
• Driver’s License
3 Income proof
• Salary slips
• Bank statements showing salary credits (up to 6 months)
• Form 16 and IT returns
4 Documents for balance transfer loan
• Property documents
• Outstanding balance letter from current lender
• No objection certificate from current lender
Other documents that could be asked for are employment contract or appointment letter, passport size photographs of the individual, application form for balance transfer.
These documents can vary slightly based on the lender. So, it is best to check with the lender you want to apply for a home loan balance transfer with.
To apply for a home loan balance transfer, click here.