Home Loan Balance Transfer & Topup

    A Home Loan Balance Transfer is a loan transfer process where you transfer your outstanding home loan balance from your existing lending institution to a new lender. It facilitates savings in terms of interest payments when you opt for a lender who offers to charge you a lower rate of interest than what your current lender charges you. This migration known as Home Loan Balance Transfer may also be termed as Refinance, or Balance Transfer.

    Your current lender will charge you a foreclosure or prepayment charge predetermined in your Home Loan agreement. In the course of the transfer, your new lender may charge processing fees and stamp duty on your loan agreement, if applicable.

    Home Loan Balance Transfer Features

    Achudha loans offers you a range of lenders who offer you loan balance transfer facility, and the eligibility criteria may vary accordingly. However, the basic criteria such as your repayment capacity or creditworthiness, etc., are the same, some of which are discussed in brief below. You may use Achudha loans’ Personal Loan Eligibility Calculator to determine you eligibility for a loan balance transfer.

    Age
    Salaried: 21 years to 60 years of age
    Self Employed: 21 years to 60 years of age
    Employment
    Salaried:Employee of any Private, or Public Company, or Public Sector Undertaking with 1 year to 3 years of Experience, and 1 year with Current Employer
    Self Employed: Person with Income as Stipulated by the Lender with 3 years of Experience
    Income
    Salaried:Minimum Rs. 15,000 for Mumbai, or Delhi Resident, and Minimum Rs. 20,000 for rest of India
    Self Employed:Turnover of Minimum Rs. 24,00,000, and differs for Professional and Non-Professionals
    Other
    You need to have Credit Score of minimum 750
    Your current outstanding loan amount must be at least Rs. 50,000 to initiate the Balance transfer process
    You must have clean record of 12 EMI payments

    Salaried Individuals

    If you are a salaried person, you will need to provide the following documents along with the other common documents.

    • 6 Months Bank Statement
    • 3 Months Salary Slip
    • Statement of Current Personal loan from Lender

    Self Employed Individuals

    If you are a self-employed person, you will need to provide the following documents along with the other common documents.

    • PAN Card / GST Number
    • 3 Years Balance Sheet with Profit and Loss Statement
    • Individual and Business 6 Months Bank Statement
    • Statement of Current Personal loan from Lender

    Balance Transfer Charges

    When you choose to transfer the outstanding balance of your existing personal loan, you will have to pay a few charges depending on the bank or NBFC you’ve taken the loan from. Your current lender will charge you an amount when you transfer personal loan to another bank, and the new lender will charge you another amount for processing your personal loan balance transfer. The charges other than personal loan balance transfer interest rate chargeable in brief are as follows.

    Foreclosure Charges

    The amount charged by your existing lender for transfer of the outstanding amount of your personal loan to another lender may be known as a Foreclosure Charge. A foreclosure charge levied on your principal loan outstanding varies from lender to lender from 0% to 4%. Some even charge a flat foreclosure charge based on the loan agreement.

    Processing Fees

    Processing Fees are another feature of a Personal Loan Balance Transfer that has to be paid; which may be a flat fee, or Rs. 500 to 4% or your loan amount. Your new lender will charge you this fee to cover costs of stamp duty agreement, etc., if applicable.

    Calculation of Personal Loan Balance Transfer

    Before you consider a Personal Loan Balance Transfer as an option, you may use Achudha loans’ Personal Loan Balance Transfer Calculator online to compute your EMIs, and the interest amount payable. This tool enables you to compare and match the interest rates, loan tenures, and other charges to opt for the best balance transfer on offer.