Loan Balance Transfer
The borrowers loan can be transferred from one lender to another. But the type of loan that’s most commonly transferred is home loan & Loan against Property, since the amount is big and repayment tenure long. Even a slight reduction in rates can mean substantial savings in the long run.
Why transfer the balance?
Get relatively lower interest rates & Fees then your existing loan
Enjoy better services than the existing lender
Get a top-up or additional loan.
Moves from a non-banking financial company (NBFC) to a bank
What should you do?
Check the terms and conditions of the new lender carefully.
Ensure that the lower rate isn’t just a short-term promotional offer.
Read the terms and conditions properly.
Avoid teaser loans as the rates are low in the initial years and higher for the rest of the period.
Before switching, check if the existing lender will reduce rates.