- Want to transfer your existing loan balance to a lender on lower rates but don't know which is the best one for you?
- No worry, we have cut short the list to five for you to choose from
The usually long tenure and fluctuating interest rates of home loans give you more than one opportunity to switch your outstanding balance from one lender to another. But, which bank should you transfer your existing loan balance to? You only find it hard to decide when you receive numerous calls from different banks asking you to do a balance transfer. So, to choose the best bank for a home loan balance transfer, you must get a rough picture of what you can describe as ‘Best’. The best lender must offer interest rates lower than the existing one by at least 0.25%-1%, less processing fee and seamless processing. Keeping all that in mind, we have listed out the best banks for home loan balance transfer.
SBI Lives Up to the Expectations of Balance Transfer Seekers!
The country’s largest lender (SBI) is one of the best banks for home loan balance transfer. The reasons are pretty simple. Not only does the bank offer lower interest rates on balance transfer, but it also provides the service without any processing fee. Interest rates start from as low as 7.90% per annum. And, with the presence that is second best to none with around 25,000 branches across the country, it will only make you confident and opt for the balance transfer deal.
How Good is the Balance Transfer Deal of HDFC Limited?
HDFC Limited, a premier mortgage finance company, gives SBI a good run even in the home loan balance transfer. Like SBI, it also keeps the rates fairly low and waives off the processing fee on balance transfer. While the rates range from 8.00%-8.80%, the processing fee so waived is adjusted in the first EMI.
A Pleasant Balance Transfer Deal Awaits You at LIC Housing Finance!
LIC Housing Finance is not far behind the previous two. The lender offers attractive interest rates ranging from 8.10%-8.95% when you do a balance transfer here. Hurry up, there’s no processing fee on balance transfer before March 31, 2020. Plus, you can have two EMIs waived the moment your loan completes 5 years here.
Is Bank of Baroda the Right Option for You?
The public lender Bank of Baroda (BoB) also has attractive balance transfer offers for you to make the most of. It keeps the rates reasonably low at 8.15%-9.15% per annum. Though it charges you on the balance transfer, it asks for a flat fee much unlike many who charge somewhere around 0.5%-1% of the transferred balance, which can be pretty high if the transfer amount is big. The flat fee amounts to ₹10,030 inclusive of 18% Goods and Services Tax (GST).
Shall You Also Consider ICICI Bank for Balance Transfer?
Yes, you can. Given the reasonable interest rates on offer, it will be a pretty decent balance transfer deal if you sign on the dotted line with ICICI Bank. The bank offers interest rates of 8.25%-9.35%, depending on the loan amount you apply for and the type of employment you have.
Use the Home Loan Balance Transfer Calculator to Get a Rough Estimate of the Savings You Could Make
Whatever lender you choose, it only pays to use the home loan balance transfer calculator and know the savings on offer. Enter the transferred loan amount, the interest rate offered by the new lender and the time for which you continue to service the transferred balance. It will show you the new EMI and interest payable over the chosen time period. See how much lower the EMI is. Plus, add the interest you’ve paid to the interest likely to be paid at the new interest rate. See, the sum so arrived is lower than the interest you’d have paid without balance transfer, by how much. That will give you a fair clue of which lender to choose for balance transfer.
Now that you have got a refined list of lenders to choose from, we feel you can make the right call on balance transfer. The calculator will further aid in your decision.
Note – Balance transfer offers can change from time to time.