All About Home Loan balance Trasnfer

Why should you choose home loan balance transfer facility by Poonawalla Housing Finance?

A home loan is a convenient option for individuals looking to purchase their dream home, especially when there’s a significant decline in interest rates. However, for those with an existing home loan, there’s always the option to consider a home loan balance transfer to cushion the burden of large EMIs every month.

By opting for a home loan balance transfer, you can move your outstanding loan amount to a new lender, benefit from lower interest rates, and reduce your equated monthly instalment (EMI) payments. For those looking for a lender offering attractive interest rates with convenience, Poonawalla Housing Finance offers interest rates starting at just 9.50% p.a. With these competitive rates, you can fulfil your plan to purchase your dream home without the burden of huge EMIs.

Understanding home loan balance transfer

Home loan balance transfer, also known as home refinancing, is a convenient process to transfer your current outstanding loan amount to a different lender, which may be a bank or a housing finance company. It is best to choose this facility during initial stages of your home loan tenure, so you can get the maximum benefit of lower interest rates.

If you meet the required eligibility criteria, you can easily proceed with a home loan balance transfer to the new lender of your choice. Make sure you choose the right lender, so you get to reap the benefit of lower interest rates, convenient facilities, and an easier repayment schedule.

For those looking for easy home loan balance transfer facilities, Poonawalla Housing Finance is a great choice. You can enjoy a flexible repayment tenure, affordable interest rates, minimal documentation, and benefit from zero foreclosure/prepayment charges.

Home loan balance transfer or top-up loan: What should you choose?

While home loan balance transfer is a good option for all individuals, it is particularly helpful for those running low on funds. With reduced monthly EMIs, a home loan balance transfer at lower interest rates and a flexible repayment option can be a great solution.

However, some individuals also consider taking a top-up loan to resolve liquidity crunch in their present situation. While both home loan balance transfer and top-up loan facilities are great options, it is important to understand your own needs before you choose either of these facilities.

While a home loan balance transfer can help you repay the loan amount at a lower interest rate, a top-up loan facility can help you manage additional expenses, which may arise anytime. The table below can help you understand the differences between these two loan options easily. Read on to know more.

Considerations Home Loan Balance Transfer Top-Up Loan
Purpose It is a process of shifting your outstanding home loan balance to an appropriate lender offering a bunch of benefits. It is an additional loan that can be availed to manage funds during a crisis.
Documentation The borrower chooses loan transfer either to repay the amount at lesser interest rates or when he is not happy with the customer services provided by the current lender. Since the bank or NBFC already has your documents, there is no need to submit documents again.
Rate of interest It lets you enjoy the lower interest rates offered by a new lender. This helps in saving a lot of money on interest payments. It comes with rates of interest you’re already paying for an ongoing home loan.
Availability This feature can be availed after paying a certain number of EMI payments with the previous lender. This can be availed at any time during your home loan tenure.

As you can see, top-up loans and home loan balance transfers fulfil all your considerations, differently. If you’re looking for a financial cushion for your monthly EMIs, you should choose a home loan balance transfer facility. However, if you’re planning to fund any additional home-related expenses, a top-up loan may suit your needs better.

Factors to consider before opting for home loan balance transfer

If you’re looking for a home loan balance transfer, it is important to consider these factors, to evade any adverse economic impact:

  • Make sure you read the fine print carefully before you choose any attractive home loan interest rate offers so that you don’t end up paying more than you save.
  • Try to move to a new lender in the initial tenure, as a transfer in the later stage may not be as lucrative as one in the beginning.
  • Check additional costs that include stamp duty fees, documentation fees, etc. Also, find out about the penalty charges, if any.
  • Make sure your new lender’s repayment tenure options are conducive to your repayment capacity.

Additionally, check for facilities that enhance your convenience. Look for online application processes, doorstep document pickup facilities, and more.

By choosing to transfer your outstanding home loan to the right lender, here’s what you stand to gain:

  • Unburden yourself from paying hefty EMIs at a higher rate of interest
  • Save money for future needs, by reducing huge EMIs
  • Enjoy attractive foreclosure and prepayment terms, and avoid paying additional charges
  • Get flexible tenure options to suit your repayment capacity
  • Enjoy value-added services, such as online processes, top-up loan facilities, and more

However, it is important to choose the right lender, so you can get higher savings, without having to undergo arduous application processes or submitting multiple documents.

Transfer your outstanding home loan to Poonawalla Housing Finance

A home loan balance transfer is a great way to reduce your overall interest outgo, which helps you save money and reduce the burden of hefty monthly EMIs. By choosing to move your existing home loan balance to Poonawalla Housing Finance, you can reap the following benefits:

  • Reduced equated monthly instalment (EMI) payments: Get reasonable balance transfer rates starting at just 9.50% p.a. with Poonawalla Housing Finance. Thus, you can enjoy significant savings, which help in reducing your monthly instalment.

  • Associated tax benefits: Moving your outstanding balance to Poonawalla Housing Finance can also help you enjoy tax benefits. Under Section 80C and Section 24, borrowers can get a tax deduction on the principal amount up to Rs. 1.5 lakh and a deduction on their interest amount up to Rs. 2 lakh.
    Section 24B of the Income Tax Act lets the borrower to avail of tax benefits on home loan balance transfer if the borrower has also availed top-up loan. Thus, borrowers can claim a maximum redemption of Rs. 30,000 on the interest paid for the top-up loan every financial year. These tax benefits can be enjoyed right until you pay off the entire loan amount.

  • Longer tenure: With Poonawalla Housing Finance’s home loan balance transfer, you can choose a longer repayment tenure. Thus, this gives you the flexibility to spread your EMIs for a longer tenure, thereby reducing the pressure of monthly instalments.

  • Lower interest rate: Poonawalla Housing Finance offers attractive interest rates, starting at 9.50% p.a. This is a great interest rate, which helps in reducing the borrowing cost in the long run, so you can manage your finances easily. In addition to reducing EMIs and increasing your monthly savings, you can also choose to reduce the repayment tenure to settle your loan in less time.

  • Top-up loan facility: For those looking for additional financing needs, Poonawalla Housing Finance also offers borrowers the facility to apply for a top-up loan on their existing home loan.

  • Online facilities: Transferring your outstanding home loan balance to Poonawalla Housing Finance is a good option, and it offers the convenience of online application process.

  • Quick loan approval: By applying online for the home loan balance transfer, you can expedite the approval processes, which help in quick sanction.

  • Complete transparency: Our home loan balance transfer procedure is completely transparent, and you get to benefit from hassle-free processing, zero hidden charges/prepayment charges, or foreclosure charges.

  • Fast disbursal: Upon verification and sanction, the remaining amount is disbursed into your account at the earliest, which helps you manage your financing needs easily.

  • Minimal documentation: If you’re worried about the endless documentation processes that impede your application processes, Poonawalla Housing Finance can put your worries to an end. You need minimal documentation, when transferring your existing home loan to us. Thus, with a quick online process and minimum documentation, you’re all set to fund your housing needs easily.

  • Home loan EMI calculator: For those who’d like to plan their home loan balance transfer thoroughly beforehand, Poonawalla Housing Finance offers an easy-to-use Home Loan EMI Calculator. With this online EMI Calculator, you need to simply enter the principal amount, tenure, and you get to determine the EMI amount, and the overall interest amount you need to pay, as per the new interest rate.
    Thus, you can calculate your savings beforehand, and compare the overall EMIs and interest amount with that of your current lender. It is best to use this EMI Calculator in advance, so you can plan better.

Easy eligibility criteria for home loan balance transfer

Choosing to transfer your existing home loan balance to Poonawalla Housing Finance is a great option that helps you save more and enjoy better facilities. What’s more – the eligibility criteria for a home loan balance transfer to Poonawalla Housing Finance is very easy.

Here’s a look at the basic eligibility parameters which can help you improve the chances of a hassle-free, faster loan processing:

Parameters Requirements
Employment type Salaried, self-employed, and non-individuals like a partnership or private limited companies
Age
  • For salaried and self-employed: 21 years at the time of loan application and maximum age should be 65 years or the retirement age, whichever is lower.
  • For non-individuals: The minimum age of key directors should be 25 years and a maximum of 65 years or the retirement age.
Citizenship Indian
Income
  • For salaried: Rs. 25,000 per month
  • For self-employed: annual income should be around Rs. 3 lakh
  • For non-individuals: annual turnover to be around Rs. 10 lakh
Experience/Vintage
  • For salaried: 1 year
  • For self-employed: 2 years in the current business
  • For non-individuals: business stability of 3 years

In addition to the above parameters, here are some factors that you need to ensure, before applying for a home loan balance transfer to Poonawalla Housing Finance:

  • Maintain a healthy credit score of 750 or above
  • Repay your existing loan advances to expedite loan approvals

It is also best to apply for a home loan balance transfer in the initial tenure, so you can maximise your savings with us.

Checklist of documents to apply for home loan balance transfer

It is easy to apply for a home loan balance transfer with Poonawalla Housing Finance. All you need to do, is submit the following documents for quicker approval, sanction, and disbursal.

  • KYC documents (applicable for all applicants): Your valid ID and address proofs include Aadhar card, PAN card, driving license, passport, voter’s identity card.

  • Account statement: Operative bank account statement for last 6 months for self-employed professionals and non-individuals.

  • Income proof: Latest 3 months’ salary slip and Form 16 for the salaried category. Income Tax Returns along with computation for last 2 years, profit/loss statement and balance sheet for last 2 years for self-employed applicants and non-individuals.

  • Other required documents: Employment ID card issued by NREGA, foreclosure letter of loan, property papers, and List of Documents (LOD) from existing financer, not more than 12 months old from login date along with a copy of property documents as per LOD.

How To Apply For Home Loan Balance Transfer

With Poonawalla Housing Finance, you can easily transfer your home loan balance either offline or online. All you need to do, is to follow these instructions:

  • Step 1: Visit Poonawalla Housing Finance’s official website or nearest branch
  • Step 2: Check your eligibility for availing home loan balance transfer feature
  • Step 3: Fill in all the details in the form
  • Step 4: Upload the required documents
  • Upon successful verification, the loan amount is disbursed into your bank account

Now that you know what a home loan balance transfer is, make sure to weigh all the factors carefully before opting for the move. Feel free to visit our official website to check out the features and benefits to make an informed decision.

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