If you are troubled by your bank, then transfer home loan like this, you can also get a discount on interest

In balance transfer, your loan is transferred to a new bank where you have to pay the EMI. But some important work has to be done in the old bank. In this, the new bank repays the loan money to your old bank.

Aug 08, 2022 | 7:55 am

TV9 Bharatvarsh | Edited By: Ravikant Singh


Aug 08, 2022 | 7:55 am




The Reserve Bank recently increased the repo rate by 50 basis points.  In the past, the repo rate has increased by 90 basis points.  In this way, an increase in the rate has been seen up to 140 points so far.  The biggest loss is being caused to the debt creditors because if they want to take a new loan, then they will have to pay more interest.  And the EMI of the old loan has also increased.  As an example, a loan of 30 lakhs is taken for 20 years, the rate of which was 7% earlier.  So earlier the EMI was Rs 23259 which has now become Rs 25093.  In this way, an increase of Rs 1834 is being seen.

The Reserve Bank recently increased the repo rate by 50 basis points. In the past, the repo rate has increased by 90 basis points. In this way, an increase in the rate has been seen up to 140 points so far. The biggest loss is being caused to the debt creditors because if they want to take a new loan, then they will have to pay more interest. And the EMI of the old loan has also increased. As an example, a loan of 30 lakhs is taken for 20 years, the rate of which was 7% earlier. So earlier the EMI was Rs 23259 which has now become Rs 25093. In this way, an increase of Rs 1834 is being seen.

To reduce this impact on the pocket, the customer either wants to repayment of the loan or wants to transfer the loan to another bank.  This is called balance transfer.  By doing a balance transfer, the loan burden is slightly lighter.  But loan transfer is correct only when the rates of banks are checked, balance transfer is done where cheap loans are available.  Before this, the pros and cons of balance transfer should also be seen.  Before balance transfer, it should also be seen that how much money is left in the first and new bank.

To reduce this impact on the pocket, the customer either wants to repayment of the loan or wants to transfer the loan to another bank. This is called balance transfer. By doing a balance transfer, the loan burden is slightly lighter. But loan transfer is correct only when the rates of banks are checked, balance transfer is done where cheap loans are available. Before this, the pros and cons of balance transfer should also be seen. Before balance transfer, it should also be seen that how much money is left in the first and new bank.

In balance transfer, your loan is transferred to a new bank where you have to pay the EMI.  But some important work has to be done in the old bank.  In this, the new bank repays the loan amount to your old bank and starts taking the EMI of the loan from you.  Having some EMI of the new bank saves you some interest on interest.  For this, an application for loan foreclosure has to be made in the old bank.  Then the account statement and property documents have to be taken from the old bank.  All these documents have to be submitted in the new bank.

In balance transfer, your loan is transferred to a new bank where you have to pay the EMI. But some important work has to be done in the old bank. In this, the new bank repays the loan amount to your old bank and starts taking the EMI of the loan from you. Having some EMI of the new bank saves you some interest on interest. For this, an application for loan foreclosure has to be made in the old bank. Then the account statement and property documents have to be taken from the old bank. All these documents have to be submitted in the new bank.

By applying to the new bank, you have to tell that you have to transfer the loan from such bank.  After this the old bank will give you a NOC or No Objection Certificate.  A consent letter can also be taken for this.  It is necessary to deposit this letter or certificate in the new bank.  You have to submit all the documents related to your loan to your new bank.  It also includes KYC documents.  Property paper, loan balance, interest paper and application will have to be filled and given in the bank.  Keep in mind that for transferring the loan to a new bank, you also have to pay a processing fee of 1%.

By applying to the new bank, you have to tell that you have to transfer the loan from such bank. After this the old bank will give you a NOC or No Objection Certificate. A consent letter can also be taken for this. It is necessary to deposit this letter or certificate in the new bank. You have to submit all the documents related to your loan to your new bank. It also includes KYC documents. Property paper, loan balance, interest paper and application will have to be filled and given in the bank. Keep in mind that for transferring the loan to a new bank, you also have to pay a processing fee of 1%.

After this, the new bank will take the consent of the loan transfer from your old bank and will close the loan on the same basis.  The contract has to be signed with the new bank.  Pay the outstanding fees of the bank.  After this your EMI will start in the old bank.  According to SBI, for loan transfer, you need to submit documents like original property documents, one year loan account statement, sanction letter and interim period security.  After this an agreement is made between SBI and the creditor.  The new bank issues a check in the name of the old bank which is equal to the outstanding amount.  The same check has to be deposited in the old bank.

After this, the new bank will take the consent of the loan transfer from your old bank and will close the loan on the same basis. The contract has to be signed with the new bank. Pay the outstanding fees of the bank. After this your EMI will start in the old bank. According to SBI, for loan transfer, you need to submit documents like original property documents, one-year loan account statement, sanction letter and interim period security. After this an agreement is made between SBI and the creditor. The new bank issues a check in the name of the old bank which is equal to the outstanding amount. The same check has to be deposited in the old bank.






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