Did you know that Housing Loan interest rate has been dipping? However, if you already have an existing Home Loan account, you can’t avail the benefits of this factor because you have a fixed interest rate on them.
Nonetheless, you don’t have to lose heart as an option in the form of Home Loan balance transfer is here to help you not only avail a lower housing loan interest rate but even many more advantages.
In the same context, let’s help you know some vital aspects of Home Loan balance transfer to make your existing Home Loans even more affordable.
What is Home Loan Balance Transfer?
If you see that the House Loan interest rate in the market has dipped, but you are unable to make the most of it, you can apply for Home Loan balance transfer. The balance transfer is nothing but switching your current Housing Loan account from an existing with a higher rate of interest to a new lender with a lower interest rate.
The facility helps you bring down the overall expense of your existing House Loan and channelize the savings towards other goals in life. The balance transfer also helps you avail the benefit of a top-up loan of up to Rs.50 to help you manage other needs.
The provision of a Home Loan balance transfer with leading online non-banking finance companies (NBFCs) helps you avail 3-EMI holiday. Yes, you are entitled not to pay any EMIs for three consecutive months so that you can manage your monthly cash flow.
Home Loan Balance Transfer Benefits
1. Lower Rate of Interest
A leading online lender’s Home Loan balance transfer with a top-up loan option helps you ensure significantly lower interest rates.
2. Drop in Tenor or EMIs
If the rate of interest goes down, and the tenor remains intact, the EMIs may drop. To pay the Home Loan early, you get to retain the amount of the EMI while lessening the tenor.
3. Your CIBIL Score may be Improved
There is also a higher possibility of your CIBIL or credit Score to improve when you opt for the Home Loan balance transfer. Why? A successful transfer of your housing loan account means that your finances are on track and so does your credit score. What’s more, when you have lowered EMIs to pay, you tend to avoid all delays and make timely payments which also keeps your CIBIL Score on track and strong!
4. Chances of Availing Improved Lender Services
When you switch to a new lender, there are chances that your customer service of the new lender will help you avail better Home Loan services.
The Bottom Line
If you are still paying an expensive Home Loan interest rate, you can opt for the balance transfer and keep your Housing Loan reasonable and manageable.