Karur Vysya Bank offers one of the most competitive and affordable home loans in the market. So, if you currently have an ongoing home loan at high-interest rates, then switching your home loan to KVB can help you reduce the overall home loan burden significantly.
For your reading: What is home loan refinancing?
Here are 5 reasons to transfer your home loan to KVB:
- Lower Interest Rates – Currently, home loan interest rates at KVB start from 7.35% and ranges up to 9.55%. If you have an ongoing home loan at a higher rate than the one offered by KVB, you can consider a balance transfer to reduce the loan outgo.
- No Prepayment Charges – KVB doesn’t levy any prepayment penalty or foreclosure charges for all home loans at floating interest rates. So, if you plan to pre-close your home loan before the ongoing tenure, then you can go for a balance transfer to KVB.
- Get a Longer Tenure – KVB offers home loans for long tenures ranging up to 25 years. If you have taken a home loan for a short term, say 5 or 8 years, you can extend the tenure when transferring the ongoing loan to KVB.
- Top-up Home Loans – KVB also offers top-up home loans for home loan balance transfers. If you require additional funds for a home renovation or extend your property, transferring an ongoing home loan to KVB helps you access additional funds.
- Easy and Seamless Process – KVB offers 100% digital, paperless home loans. The digital home loan makes it easy to complete the balance transfer, track your home loan repayments and repay EMIs.
Points to Keep in Mind before a Home Loan Balance Transfer
- A home loan balance transfer offers the maximum benefits when you do it at the beginning of the tenure. For example, let’s say you have had an ongoing home loan for 20 years. Transferring it during the first 5 to 8 years of repayment helps you maximise your savings.
- Calculate the costs of transfer as well as savings you get with the balance transfer. Ideally, you should go for a balance transfer only when the savings are higher than the transfer cost. Ensure to check the pre-closure charges and other penalties with your current lender to decide if the balance transfer is a smart move financially.
- Make sure to check your eligibility with the new lender before going for a balance transfer. Sometimes you may find that you’re not eligible for a balance transfer with your preferred lender.