Balance transfer

 

  • Are you running a high interest loan?

  • Do you feel over-charged by your existing lender?

  • Your friend has recently got a new loan at a much lower interest than what you are paying currently?


Why wait !!

 

You can easily shift your loan to a lender which offers better terms, has good market standing and a long term business outlook…..

 

Overview:

Balance Transfer (BT) or Refinance is a loan extended to take over your existing loan to another bank / lender. Reducing interest rate and raising additional loan are 2 biggest reasons why one would want to shift to another lender. Any type of Home Loan / Loan Against Property can be re-financed by another lender at better terms and with additional finance. Loanbroker.in provides the home loan transfer or Balance Transfer in Delhi/NCR

 

 

Points to Ponder – Before you shift:

  • Difference in Interest rate – Larger the difference, the more it makes sense to shift your loan. Also most of the existing loans are linked by Banks to their respective Benchmark rates viz. PLR, FRR, MRR etc. With effect from 1st July 2010, RBI made it compulsory for Banks to link all loans to Base Rate by adding a margin to it. No loans can be offered below the Base Rate. Base Rate gives a much more transparent picture of a Bank’s cost of funding. Thus it makes a lot of sense to convert one’s loan linked to the old PLR to the new Base Rate.

 

  • Foreclosure Charges – Another important factor is to check the exit clause of your existing loan. Most banks do not charge anything if you close the loan from your own funds. However in case of a balance transfer, they normally charge between 2 – 5% of the current Principal outstanding. This is the biggest hindrance to a balance transfer and can wipe out the entire savings on account of difference in interest rate.

 

  • Processing Fees of the new Lender – For the new lender a refinanced loan is like a new loan attracting usual processing fees and other charges.

 

  • Top-up Loan – The new lender tends to offer additional loan in the form of a Top-up at either same Home loan interest or higher rate. This is another advantage of transferring existing loan with another lender.

 

Contact us for the balance transfer or home loan transfer.

Check out our Balance Transfer calculator to determine savings made if you decide to shift