A mortgage loan balance transfer allows a borrower to transfer their ongoing LAP to a new lender. An individual usually opts for this option when he or she gets the same credit at more flexible terms, such as lower interest rates, longer repayment tenor, etc.
In this article, we are going to learn the steps to apply for a loan against property balance transfer from one lender to another. Continue reading to know more about the same.
How to opt for a mortgage loan balance transfer?
Willing candidates can follow these simple steps to apply for a loan against property balance transfer:
Step 1: Visit the official website of the new financial institution and locate the loan against property application form.
Step 2: Choose your ‘Employment type’.
Step 3: Following this, select the option of ‘Loan against property balance transfer’ under ‘Loan type’ tab.
Step 4: Submit all the relevant details, such as property, lender and identification details.
Step 5: Next up, submit your income details and hit the ‘Submit’ button.
A representative from the lending institution will get in touch with you to guide you through the next steps.
What are the features and benefits of a LAP balance transfer?
Here are the features and beneficial aspects of opting for a loan against property balance transfer:
- Sizable top up
With a mortgage loan balance transfer, borrowers can get a top up of up to Rs. 1 crore or more. Though this amount can be higher or lower as per the eligibility of the borrower.
- Affordable interest rates
One of the primary reasons why borrowers opt for a balance transfer facility is competitive interest rates. Getting the same loan transferred to a new lender with lower interest rates will help reduce the total interest burden and allow better financial management.
- Flexible payment options
Eligible candidates get lucrative benefits like closing the loan with zero foreclosure charges in case they have enough savings. Further, they can also choose to repay the interest component at the beginning of the loan tenor.
- Longer repayment tenor
Another reason to opt for a balance transfer facility is a longer repayment tenor. However, one must keep in mind that opting for a long repayment tenor will increase the overall interest outgo. Borrowers must keep this factor in mind and make an informed decision accordingly.
Eligibility criteria for loan against property balance transfer
In order to apply for a LAP balance transfer, an individual has to fulfil the following eligibility criteria:
- Applicant must be an Indian resident
- Candidate must fall in the age group of 23 to 62 years
- Willing applicants must have at least three years of work experience with a private or public sector industry or any MNC
Documents required for a mortgage loan balance transfer
In order to opt for the balance transfer option, eligible candidates have to produce the following documents:
- Latest salary slips
- Previous three months’ bank account statements
- Aadhaar and PAN card
- Address proof
- Copies of the mortgaged property’s documents
- Income Tax Returns
Loan Against Property EMI Calculator
In order to determine the affordability of a credit instrument and to choose the best lender as per your financial requirements, you can consider using a Loan against property EMI calculator. This online free-to-use tool is offered by almost every financial institution in our country.
The tool works on three variables, i.e. principal loan amount, rate of interest and repayment tenor. You can choose to adjust these variables as many times as you want until you get your desired result.
Several financial institutions in our country extend pre-approved offers along with their secured credit instruments, such as home loan, loan against property, etc. These offers are specially designed to fasten the loan application process and expedite the disbursal stage.
You can check these pre-approved offers by entering a few details on your lender’s website. Borrowers usually opt for a mortgage loan balance transfer when they do not find their current lending terms feasible enough.
By transferring the mortgage loan balance to a new lender, one can enjoy the benefits of lower interest rates, longer repayment tenor and other beneficial lending terms. The pointers mentioned above will help those who are looking forward to opting for the balance transfer option.
