- You want to secure a lower interest rate.
- You're dissatisfied with your current lender's services
- You want to avail better terms and features offered by another lender.
Key Benefits:
- Lower Interest Rates: The new lender may offer a reduced interest rate, saving you money over the loan tenure.
- Improved Loan Terms: You can negotiate better repayment options or top-up loans during the transfer.
- Fresh Start: This program provides an opportunity to reset loan terms with a lender you trust.
While a home loan balance transfer is a beneficial option, certain restrictions and requirements apply. For instance, the new lender must support balance transfer programs, and your existing loan should have a clean repayment history with at least 12 EMIs remaining. You will also have to pay a fee when transferring your home loan amount from one lender to another. Some lenders offer free balance transfers, while others charge a nominal fee. You should also be aware that transferring your home loan amount to another lender will be treated as a new loan, and the interest rate may change.
Additionally, transferring your loan may involve a fee—some lenders offer free transfers, while others charge a nominal amount. It's important to note that the transfer is treated as a new loan, which may result in changes to the interest rate.
Make informed decisions about transferring your home loan with the Nestaway Home Loan Balance Transfer Calculator. This free and easy-to-use tool helps you evaluate if switching to a new lender is beneficial.
Steps to Use:
- Enter details of your existing loan.
- Provide information about the new loan.
- Click "Calculate" to see results instantly.
- Total Savings: Evaluate overall cash outflow reductions.
- Existing EMI: Review your current monthly installment.
- Promised EMI: See the projected EMI with the new lender.
- EMI Savings: Understand the difference and potential monthly savings.
- Existing EMI
- Promised EMI
- Savings in EMI
- It is easy to use, requiring no involvement of experts. The user only needs to input some key details—such as the existing interest rate and tenure—in order for a prediction about future rates being issued through this solution. You can keep using it again and again with details of different lenders each time.
- A home loan balance transfer calculator helps you understand how much money will be saved after a transfer takes place.
- Using a balance transfer calculator can help you understand the expected monthly payments after transferring the debt.
- A home loan balance transfer calculator enables you to gauge your expected repayment tenure after switching over and make an informed decision based on that.
The Rate of Interest (ROI) varies based on factors such as your CIBIL score, income, age, and overall financial profile. If you meet all the eligibility criteria set by the lenders, you can qualify for the lowest rates available in the market. At present, the lowest ROI in the market is 8% per annum, but this is subject to meeting all conditions specified by the bank. It's advisable to compare offers from multiple banks and financial institutions to ensure you secure the best rate tailored to your requirements.
Loan eligibility is determined by several key factors, including:
- Cumulative Net Monthly Income: The combined net monthly income of the applicant and any co-applicants plays a significant role in determining eligibility.
- Existing Debt Obligations: The total outstanding loans and credit card dues already in your name can impact your eligibility.
- EMI-to-Income Ratio: Most banks follow a guideline where the total EMI obligations, including the proposed home loan, should not exceed 60-70% of your net take-home salary.
The final decision to grant a loan rests with the bank's credit department, and there can be several reasons for rejecting a home loan request. While income is a significant eligibility criterion, other common issues include:
| Possible Issues / Reasons for Rejection | Possible Way Out |
|---|---|
| Several ongoing loans |
|
| Issues in your credit history as reflected in your CIBIL, Equifax reports |
|
| Not meeting the minimum cut-off for or hidden internal credit parameters crucial to evaluating a loan request | Nestaway (in association with AurumKuberX) can re-apply for your loan in one of the other 30 plus lenders that we are affiliated with |
Pre-closure refers to a situation where the customer wants to settle the entire outstanding principal amount in one lump sum. Part prepayment, on the other hand, means the customer intends to repay only a specific portion of the due amount. Please consult our advisor for more details once your loan is processed.
Yes, home loan pre-closures are allowed without extra charges, provided the repayment mode you have chosen is a floating rate of interest and not a fixed one. For part payments, some banks may impose restrictions on the number of times you can make a part payment per year, as well as the amount you can repay in total within a year. Please connect with our financial advisors or the bank's loan advisor to clarify these factors before signing the loan document.