Home Loan Balance Transfer

Home Loan Balance Transfer

Home loan Balance Transfer (HLBT)

Fulfilling the dream of owning a home is one of the biggest achievements in life and requires a huge capital investment. Banks and other financial institutions have fulfilled this aspiration of millions via Home Loans. Usually, Banks charge interest on a Home Loan that can range from 8.35% to 12%. This rate of interest varies based on the eligibility of the borrower and the lending institution.

Every borrower wants to save interest cost. The rate can be reduced either by negotiating with the existing bank or transferring the loan from the current bank to another bank at a reduced rate.

What is Home loan Balance Transfer (HLBT)

HLBT is a process that facilitates the borrowers to shift their existing Home Loan to another bank at a reduced or lower rate of interest. With this, the borrower can pay future EMIs to the new lender at the reduced interest rate.

The process starts with the submission of an application requesting for the foreclosure statement of a home loan with the existing bank. If the bank accepts the application, it will issue a foreclosure letter with current loan details.

Post the foreclosure letter the borrower will file a request for a Home Loan Balance Transfer with the new bank. If the new bank accepts the loan application, all the formalities with the previous bank will be completed and all the new EMIs will be paid to the new bank.

Thus, HLBT is beneficial for the borrowers who have a Home Loan at a higher rate but want to optimize their interest cost.

Reasons for Opting HLBT

There are several benefits that borrowers receive for getting their Home Loan transferred. Some of the reasons could be as follows:
  • Reduced monthly rate of interest
  • Reduced monthly outflow (EMI)
  • The borrowers can also negotiate with their bank to reduce the loan tenure.
  • HLBT helps in the reduction of the amount of money the borrower has to pay interest on during the entire tenure of the loan.
  • Banks also run special NIL fees offer on HLBT products from time to time.

Steps for HLBT

The borrower has to perform the following steps to initiate the process of Home Loan Balance Transfer:

  • A borrower has to submit an application with the existing bank requesting for the foreclosure Statement of a Home Loan.
  • On accepting the application from the borrower, the bank will issue a foreclosure letter including current loan details along with the details of the outstanding loan amount.
  • After receiving the letter from the bank, the borrower will request a Home Loan Balance Transfer to the new bank.
  • On acceptance of the application at the new bank, all the formalities with the old bank are completed.
  • After transferring the home loan, the borrower will pay all the EMIs to the new bank.

Eligibility Check

Docs Required for HLBT

Check List

Why Opt VIVA FA for HLBT

VIVA FA is one of the leading online platforms for financial services that can get you the best HLBT deal with maximum advantages.

VIVA is the oldest market player with more than 8 years of experience of customer satisfaction. The experienced and skilled team of VIVA your financial requirements to get you the best loan offer of the market. The service-oriented professionals provide you support from the initial stage of loan process to the end stage of loan disbursement into your bank account. The key advantage of using the services of VIVA for obtaining an HLBT is the support the team offers after loan disbursement.