Home Loan Balance Transfer
transfer existing loan to another bank
What is Home Loan Balance Transfer
Home Loan Balance Transfer (HLBT) is a process that facilitates the borrowers to shift their existing Home Loan to another bank at a reduced or lower rate of interest. With this, the borrower can pay future EMIs to the new lender at the reduced interest rate.
The process starts with the submission of an application requesting for the foreclosure statement of a home loan with the existing bank. If the bank accepts the application, it will issue a foreclosure letter with current loan details.
Post the foreclosure letter the borrower will file a request for a Home Loan Balance Transfer with the new bank. If the new bank accepts the loan application, all the formalities with the previous bank will be completed and all the new EMIs will be paid to the new bank.
Thus, HLBT is beneficial for the borrowers who have a Home Loan at a higher rate but want to optimize their interest cost.
How We can help you?
Comments are closed.