Regretting
your decision of taking a Home Loan from your existing bank? You can opt for a
Home Loan Balance Transfer to another financial institution to avail a lower
rate of interest and better services.
Home Loan
Balance Transfer is an ideal option for people who are not satisfied with their
current lender and want to change their loan terms and conditions. However, the
main reason why people opt for a Balance Transfer is to enjoy a low rate of
interest. This move is supported by the RBI that announced an amendment in 2014
asking banks and NBFCs to stop imposing foreclosure and prepayment charges on
borrowers who have availed Home Loans at floating rates of interest. This step
has also compelled banks and NBFCs to reduce biasing between old and new
customers.
This
amendment came as a huge relief to Home Loan borrowers. So, now you can
transfer your Home Loan without paying a huge penalty. If you want to opt for a
Home Loan Balance Transfer from HDFC to SBI , here’s a comparative analysis of
their interest rates and terms.
|
HDFC
|
SBI
|
|
Interest Rate Range
|
9.55% - 9.60%
|
9.45%
|
|
Interest Type
|
Floating
|
Floating
|
|
Processing Fee Range
|
0% to 0.5% (max. ₹10,000)
|
0.35% (max.₹10,000)
|
|
Loan Amount
|
5 L - 10 Crs
|
15 L - 10 Crs
|
|
Tenure Range
|
1-30 Years
|
1-30 Years
|
|
Preclosure Fee
|
0
|
0
|
|
Part payment fee
|
0
|
0
|
|
Avg. approval time
|
4.2 Days
|
5 Days
|
Documents required for Home Loan
Balance Transfer from HDFC to SBI
1. Identity proof
2. Address proof
3. Salary slips of last three months
4. Bank statement for the last 6 months
5. Details of your existing Home Loan
account
6. Foreclosure letter from HDFC, which
states the outstanding loan amount
7. Other documents submitted to HDFC
(they will be forwarded to SBI by HDFC)
Procedure for Home Loan Balance
Transfer
Follow these
steps to smoothly transfer your Home Loan from HDFC to SBI:
·
Submit
a letter requesting Home Loan Balance Transfer to your new lender
·
your
existing lender will then issue a consent letter, an NOC, list of property
documents, past EMI records, letter stating your outstanding balance
·
Apart
from the documents mentioned above, your new lender might also ask you to
submit an NOC from your builder and other documents
·
Once
your new loan has been granted, your new lender will pay the outstanding loan
balance to your previous lender
·
The
post-dated cheques that you submitted with your previous lender will be
cancelled
·
After
this, the transfer process will be complete and your new loan account will be
activated
Why do borrowers prefer SBI when it
comes to Home Loan Balance Transfer?
People opt
for a Home Loan Balance Transfer when they feel that other financial
institutions have a better Home Loan offer than their current one. And amongst
them, SBI is an all-time favorite due to their hassle-free and quick services.
If you’re
planning a Home Loan Balance Transfer from HDFC to SBI, keep the above pointers
in mind while filing your application.
{Source: https://home-loan-balance-transfers.blogspot.in/2016/06/home-loan-transfer-from-hdfc-to-sbi.html}
