About Balance Transfers

Everything You Need To Know About Balance Transfers

Why To Transfer My Home Loan?
Due to a high disparity between interest rates for existing and new customers, several home loan customers are unhappy with the high rates they are being forced to pay. But when banks start discriminating between you and its new customers, it’s time for you to transfer your home loan to a lower interest rate and save money. Balance Trasnsfer is the solution.
Balance transfer of loan is the process where a customer transfers his outstanding principal amount to another bank or financial institute primarily for a better rate of interest and also better features. Almost every type of loan - auto, personal, home, education has a balance transfer facility and almost all banks have this facility.
Balance transfer is a very lucrative facility for individuals who have taken a loan, but surprisingly very few avail of it. The problem is very few are aware of it. Every individual that has taken a loan should opt for a balance transfer at least once during the tenure of the loan. Balance transfer reduces you interest rates and finally enables you to save on the interest you have to pay. Also, income levels of an individual are dynamic and what you currently earn maybe more than what you earned two years ago. Balance transfer is a great facility that lets you reexamine your debt, make changes to it and also tweak it according to your requirements.
Most banks also allow a top up loan on your balance transfer, which is particularly the case for personal loans and home loans. However, the prime motive behind balance transfer should be to reduce the burden of your debt and I would not advice one to go for a top up loan, unless absolutely necessary.

Why it makes sense:
For example if you have a loan for Rs. 2, 50,000 for tenure of 3 years at 20% interest rate, your monthly EMI comes to Rs. 9,291. The total interest you would pay for the duration of your loan will amount to Rs. 84,472. If after 1 year you go for a balance transfer and the rate of interest is now reduced to 14%, the principal outstanding on your loan is Rs. 1, 76,299. A balance transfer of the outstanding principle if rounded off to Rs. 1, 80,000, your monthly EMIs will drop to Rs. 8,642 while your total interest payable will drop to Rs. 27,416. For the first year you would have already paid back Rs. 44,039 which meant another Rs. 40,433 was remaining. But with balance transfer your total interest now stands at Rs. 27,416, which means a saving of about Rs. 13,000.

Balance Transfers Apply Now

Document Checklist

Most banks follow the same general rules in terms of document requirement. There may be a few changes in certain cases, in which case, our loan officers will guide you personally to complete the documentation process. Salaried individuals.

  • 1. Form 16 of last 2 years or Income Tax Returns.
  • 2. Salary slips of last 3 months.
  • 3. Last 6 months bank statement reflecting salary credits.
  • 4. ID/ Age Proof - PAN Card/ Passport/ Signature Proof/ Aadhar Card and Residence Proof – Passport/ Utility bills/ Bank Statements.
  • 5. Cheque of Processing Fee.

  • 1. Proof of Business - Shop and Establishment Certificate/ Vat Registration Certificate/ Service Tax Certificate.
  • 2. Last 3 years IT tax returns with profit and loss account and balance sheet duly audited by CA.
  • 3. Existing Loans’ Sanction letters accompanied with repayment track.
  • 4. Business profile on the letterhead of the company.
  • 5. ID/ Age Proof - PAN Card/ Passport/ Signature Proof/ Aadhar Card and Residence Proof – Passport/ Utility bills/ Bank Statements.
  • 6. Cheque of Processing Fee.

  • 1. Age proof of all the partners in the form of PAN Card, Passport or Aadar Card.
  • 2. PAN Card of the company.
  • 3. Residence proof of all the partners – Utility Bills/ Passport/Bank statement/ Registered rent agreement.
  • 4. Proof of Business - Shop and Establishment Certificate/Vat Registration Certificate/ Service Tax Certificate.
  • 5. Latest 3 years Income Tax returns with profit and loss and balance sheet duly audited by CA.
  • 6. Latest 12 months bank statement of the Company and of the Partners’ Savings Bank Account.
  • 7. Existing Loans' Sanction letters accompanied with repayment track.
  • 8. Business profile on the letterhead of the company.
  • 9. ID/ Age Proof - PAN Card/ Passport/ Signature Proof/ Aadhar Card and Residence Proof – Passport/ Utility bills/ Bank Statements.
  • 10. Cheque of Processing Fee.

  • 1. Application form duly filled with photographs of directors.
  • 2. Age Proof of Directors - PAN Card, Aadhar Card, passport.
  • 3. Residence Proof of Directors - Utility Bills/ Passport/Bank statement/ Registered rent agreement.
  • 4. PAN Card of Company.
  • 5. Education Qualification - A professional qualification certificate in case of Doctors/CA/Architects.
  • 6. Proof of Business - Shop and Establishment Certificate/Vat Registration Certificate/ Service Tax Certificate.
  • 7. MOA, AOA, List Of Directors, Share Holding Pattern of the Company.
  • 8. Last 3 years IT returns with Profit and Loss account and balance sheet duly audited by CA.
  • 9. Latest 12 months bank statement of Company of all current accounts and the same for Director’s Savings Bank Account.
  • 10. Existing Loans’ sanction letter with repayment track of company and Individual Directors.
  • 11. Business Profile on the Letter Head of the Company.
  • 12. ID/ Age Proof - PAN Card/ Passport/ Signature Proof/ Aadhar Card and Residence Proof – Passport/ Utility bills/ Bank Statements.
  • 13. Cheque of Processing Fee.

  • 1. Occupancy Certificate.
  • 2. Approved Plan of building.
  • 3. Share certificate copy.
  • 4. Past 13 years Chain of deeds.
  • 5. Nil Encumbrance Certificate - EC (if applicable).
  • 6. Current Sale agreement/ Draft Agreement to sell.

Eligibility Criteria

Eligibility Criteria

  • Your eligibility for Home Loan is determined by the following factors:-
  • Income/ Other Income
    Age
    Qualification
    Property value
    No of dependents
    Bank Balance
    Assets/Liabilities