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Home Loan Transfer Process: How Does It Work

Dec 23, 2022

4 min. Read

Home Loan Transfer Process: How Does It WorkHome Loan

Imagine if you could just transfer all your stress and problems to a different person. Wouldn’t it be wonderful if someone else could take care of your responsibilities? In the modern world, everyone is stressed out for some reason or another. Borrowers are an important mention when it comes to talking about stress. EMIs and high rates of interest have a lot of power to take the peace of your mind away. When it is becoming too much for you to keep on making those monthly payments with lots of added interest, it is time for you to transfer your loan. When you choose to start the Home Loan Transfer Process, you can let out a sigh of relief because many benefits are coming your way.


What is Home Loan Transfer?


Home Loan Transfer is an option you can choose when you want to switch to a new lender offering low rates of interest and better terms of service. This option is extremely beneficial, as you can also borrow a Top Up loan from your new lender in case you need additional funds. It sounds like a win-win situation, and in some cases, it certainly is. However, we highly recommend you weigh all the pros and cons, carefully consider your exact situation, and then take the decision to transfer your loan to a new lender.


When you should and shouldn’t go for a Home Loan Transfer Process


A Home Loan Balance Transfer on the surface looks like a cup of tea that can be enjoyed by everyone, but that is not the case. A Home Loan Transfer is an ideal option on a few occasions. Here are a few ways to understand this better:

• When the new lender offers a low-interest rate that is floating, you should be aware that this rate is going to change and might be even higher than your current lender. In this situation, it isn’t advisable for you to choose to start a Home Loan Balance Transfer Process.

• There are a number of attractive offers that your new lender might offer like fee waivers, low rates, and easy top up but you should read all the terms and conditions carefully to avoid getting into trouble. If the offer is lucrative, you should move forward; otherwise, you should stick with your current lender.

• If you have less than 5 years remaining on your repayment tenure, we recommend not making the switch, as the principal amount will majorly be your EMI so a low rate would not give you much savings. If you are in the early stages of your tenure, it is highly recommended that you make the switch.

Home Loan Transfer Process


A Home Loan Balance transfer process is not a tedious one. It can be applied online too. Here's the whole Home Loan Transfer Process:

• Research for a new lender: Research some new lenders and compare the rates they offer. Also, compare the terms and conditions offered by each lender. Choose the lender with the best options and finalise your decision.
• Request letter: Send a request letter to your current lender seeking permission to switch to a new lender.
• Obtain the NOC or consent letter from your current lender and obtain all the property-related documents.
• Application: Visit the new lender’s website and read the terms and conditions once again to be completely sure of your decision. If you find the terms and conditions suitable, move forward by filling out the application for the loan transfer.
• Offer: After filling out the information, you will see an offer. Choose the offer if it fits your requirements.
• Fees and charges: Pay the required fees and charges after choosing the offer
• Upload documents: Upload all the required documents and wait for approval from your new lender.

A Home Loan Balance Transfer is a lucrative option if all the criteria mentioned in this article match yours. Conducting thorough research about your new lender becomes important when you want to lower the levels of stress and live a comfortable life.

Home Loan Transfer Process Eligibility


Jumping on the wagon to switch your lender without finding out your eligibility would be a bad decision and a sheer waste of time. We recommend first finding out if you fulfil the conditions for Home Loan Transfer Process Eligibility. Here are the criteria that need to be met for you to be eligible for a Home Loan Transfer Process Procedure:

Your age should be 23 years to 62 years upon the maturity of the loan.
You should have a track record of repayment for at least 12 months.
Your loan will be transferred only if it is from an approved financial institution.
A Home Loan Balance Transfer Process Procedure can be carried out only if your property is residential.
The title document's ownership should remain with you (the applicant).

Home Loan Transfer Documents Required


After you have finalised your decision to transfer your home loan, you need to find out what documents you will need. Here is a list of Home Loan transfer Documents Required:

• Request letter: A letter has to be sent to the current lender requesting a switch to a new lender. Make the letter as convincing as it can be and write down all your reasons in detail to ensure that permission is granted.
• NOC: This document is provided by your current lender if permission has been granted. They can also send you a consent letter that states that you have permission to make the switch.
• Customer undertaking: It must be submitted within 20 days from the date of disbursement.
• Letter of authority: This letter states that the applicant is authorising the representative of the new lender to collect the original title documents and mortgage release letter from the previous lender.
• Irrevocable POA: This document is a notarized stamp paper that is required from the applicant in favour of the new lender’s lawyer.


This article is authored by L&T Finance.

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