Balance Transfer Overview

Getting a Home Loan is easy, but when suddenly macro-economic changes in the economy lead to a fall in interest rates, the existing borrowers may feel that they are paying a higher rate of interest than the market would be offering. To reduce existing interest rates, you have two choices, either requesting the existing bank to reduce the rate of interest or opting for a Balance Transfer for your outstanding existing Home Loan amount.

BT Features & Benefits:

As Borrower you would want to shift your existing loan for any or all of these reasons:

♦  Lower Rate of Interest and other terms of the new Lender

♦  Enhanced loan amount given by the new Lender

♦  Better Product Variant being offered by the new Lender like Home Loan OD A/c

♦  Better services being offered by the new Lender

♦  Better Brand image of the new Lender

Process Steps:

Steps involved in the Balance Transfer

♦  Calculate your interest & cost savings based on your current interest rate. Click here

♦  Shortlist a new bank based on schemes, offers and interest rates, and decide if a top up loan is needed. Click here

♦  Apply for the home loan balance transfer with the new bank and submit requisite property documents and other related documents. Apply here

♦  Obtain sanction letter to execute new loan agreement

♦  Get disbursement from the new bank, by way of cheque or demand draft in favour of your current bank, and then deposit the same

♦  Obtain and deposit property documents from old bank to new bank

BT Eligibility:

Click here to Quickly check your Home Loan Eligibility....

Balance Transfer (BT) eligibility criteria are the same as applicable to a New Home Loan or New Loan Against Property application process. In addition to the normal checks, the new Lender will also check the following factors:


Existing Track Record:-

♦  This is the single most important thing which a new Lender will check before granting approval for taking over the loan. The existing track record can be checked from any of the following documents:

♦  Loan Account Statement of the existing lender showing EMIs paid track record

♦  Bank statement of the Borrower showing debits of EMIs paid since inception of the loan

♦  CIBIL report showing the past EMI paid record for each month with delays if any


Property Cost & Market Value:-

♦  With time, property market value can increase or decrease. The new lender will check the current Market value of the property before granting loan. The maximum loan which can be given as Balance Transfer is same as follows:

Home Loan Amt.

Maximum Funding

Upto 30 lacs:

Upto 90% of Property Market Value

From 31 - 75 lacs:

Upto 80% of Property Market Value

More than 75 lacs:

Upto 75% of Property Market Value


Various types of documents are required to submitted for a Balance Transfer Application:

♦  KYC Documents 

♦  Income Documents 

♦  Bank Statements 

♦  Existing loan details

♦  Property Documents

Generally the documents required are almost similar across all Banks; however they may differ with various banks depending upon specific requirement etc. 

For a Detailed list of Documents required - Click here....

BT Interest rates - Special Offers:


Balance transfer rates are similar to new loans interest rates for both Home Loans and Loan Against Property:

For Special offers on Balance transfer of existing Home loans, Click here...

For Special offers on Balance transfer of existing LAP, Click here…

BT Fees & Charges:

The same set of fees and charges are normally applicable to a Balance Transfer as mentioned here for Home Loan or Loan Against Property

However many Banks and lenders have special offers with Zero fees or charges on Balance Transfer of Home Loans:


HDFC Home Loan Refinance Balance Transfer Campaign - Zero Processing Fees: 

Salient Features:

♦  For Salaried Profiles and Self-Employed Professionals

♦  For both Residents and Non-Residents

♦  Zero Processing Fees

♦  Top-up Loan upto Rs.50 lacs @ same Home Loan interest rates

♦  Limited period offer with Terms & Conditions

Top-up Loans (With BT):

A Top-up Loan means an additional loan which you can get on your existing Home Loan or Loan Against Property or Business Loans. This is given based on a clear track record of the existing EMIs being paid and also based on property market valuation. The rate of interest is slightly higher or the same as compared to the existing home loan or loan against property or business loan. The Top-up loan funds are paid in the account of the Loan borrower itself unlike a Home loan where the funds are paid in the account of the seller. These top-up funds can be utilized for any personal or business purposes.



A Top-up loan can be availed on your existing loan to meet any of these purposes:

♦  To meet any personal requirement say marriage in family, vacation etc.

♦  To acquire any personal asset like white goods, car etc.

♦  To meet any business expansion for working capital

♦  To meet any business requirement for machinery loan or equipments


Top-up Maximum Loan Amount:

♦  Upto 10% to 100% of the Home Loan Amount is treated as Top-Up

♦  Above is subject to Income criteria, Property Market Value and Existing loan tracd record


Top-up Loan Tenure: 

 ♦ Upto 30 years depending upon the remaining period of your existing home loan or loan against property


Applicant and co-applicants for a Top-up loan:

♦  Same set of applicants and co-applicants as in the main Home Loan or Loan Against property need to apply for a Top-up loan


Tax Benefit on Top-up Loan: 

♦  Tax benefit is available u/s 24 only if the Top-up is utilised for the purpose of Home Improvement or renovation or extension. 

♦  A Businessman profile can avail deduction of interest paid on Top-up loan u/s 37 if the funds are utilised for Business purposes.

Top-up Loans Eligibility:

To get a Top-up loan, some eligibility criterias need to be fulfilled as follows:

♦  Top-up is available on a running home loan or loan against property

♦  You should have paid atleast 6 EMIs to be eligible for a Top-up loan

♦  The EMIs paid track record should be clear with negligible number of bounces

♦  The property in question should be 100% complete

♦  Income Criteria will be checked like normal

♦  LTV or Loan to Value ratio should be upto 75% of the Property Market Value. This includes both the existing loans principal outstanding and the Top-up loan.


Home Loan Top-up Interest Rate and Fees:

♦  Interest rate on Top-up is very competitive as compared to a Loan Against Property or Unsecured Business Loan. Following are the rates being offered by few key Banks:


Top-up Amt

Rate of Interest



Upto 100% of Home Loan Amt upto 50 lacs



Axis Bank

Upto 30% of Home Loan Amt




30% to 100% of Home Loan Amt




Upto 100% of Home Loan Amt



SBI Bank

Upto 100% of Home Loan Amt



To know all Banks Home Loan + Top-up Interest Rates, Click here…


Top Up Loan Documentation:

Documents required for a Top-up with Balance Transfer or Internal Top-up is the same as for normal Home Loan.

Click here to view the Documentation for Top-up Loans