The loan balance transfer is a very rewarding feature for those who have taken a loan. Very few people are aware of the existence of this kind of a facility. It is great if every individual who has taken a loan avails of this facility at least once during the tenure of the loan. A balance transfer reduces your interest rates, thus helping you save on the interest you would have to pay. It is a great facility that lets you reassess your debt, make changes to it and modify it as per your necessities.
First of all, you will need to submit a letter to the existing lender, requesting a transfer. Based on your request, the lender will give a consent letter or a ‘No Objection Certificate’ (NOC) along with a statement mentioning the outstanding loan amount. You need to give these documents to the new lender, who will then transfer funds to the old lender for an account closure. Once this transaction is done, your property documents will be handed over to the new lender. The remaining post-dated cheques that you might have given to the old lender will be cancelled.
Admissibility for a Balance Transfer
One is typically familiar with the stringent eligibility requirements of the home loan and personal loan balance transfers.
Documents Required for Loan Balance Transfer
Applicants need to provide a set of documents to approve the home loan balance transfer, just like the documentations required for Home Loans and personal loansShow More