How to transfer the home loan from one bank to another bank ?

When we transfer our home loan from one bank to another, then it is termed as Home loan Balance transfer.When you opt for a balance transfer, your new bank , on your behalf, would write a cheque to your previous bank after conducting due diligence.Once the cheque has been cleared and all the documents of your property are collected, the debt liability moves to the new bank.You would be able to save a lot of bucks in balance transfer if the new lender offers the home loan at low interest rates.

While transferring loan, watch out for any prepayment penalty. The existing bank might try to impose prepayment penalty. Although, by law, neither a bank, nor a financial institution can impose a prepayment penalty on loan taken at floating interest rate. A bank/NBFC can however, impose a prepayment penalty on the loan closure only if the interest rate is fixed rate.

What are the steps that are required for transferring the home loan from one bank to another bank?

1. You need to apply for the balance transfer at the new bank

2. Once the balance transfer has been approved,go to the existing bank to inform about this decision and ask for LOD and foreclosure letter.

3 Make a Co-ordination between your new bank and the earlier bank so that the agreement is signed and the money is transferred.

4. It takes arounf 15-20 days from the old bank to give the original documents. The original documents are picked up directly by the lawyer representing the new bank. But you must keep in touch with both of them so that the documents are handed over properly and securely. Obviously, these are your documents!!!

5. The EMI, paid in the form of ECS to current bank is stopped and is deducted starts from the new bank.

What are the documents required for home loan?

Various banks and financial institution require following list of documents for the loan against property.You can apply loan against property by following the steps below:

1. Application form along with a photograph is required for both salaried as well as self-employed.

2. Identity and residence, proof of the applicant is compulsory.

3. Latest salary slips in case you are salaried customers and proof of business existence in case you are self-employed.

4. Last 6 months bank statement in case you are salaried or self-employed customer.

5. Processing fee cheque for both salaried and self-employed customer.

There are various agencies that offer hassle free loan against property like Brickloans that would help you save your precious time and effort.Do check for the following above points before you opt for the loan against property.

BrickLoans is a FinTech company focused on only Home Loans. We make fresh loans/existing loan transfer easier for you. All you have to do is contact us and we will take care of the entire process. Founded by Ex IITians and professionals with corporate experience and pedigree. We operate in following cities Mumbai, Pune, Chennai, Gurgaon, Noida, Bangalore and Hyderabad

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