Home Loan Transfer to SBI, ICICI, HDFC, Axis Bank, PNB Housing

Last Updated 21st Apr 2018

Home Loan Balance Transfer

  • Home loan balance transfer can be availed at interest rates starting from 8.35% along with special offers for home loan top up, home credit facility and Nil processing fees. Check Best Offers
  • If you are paying an EMI which is significantly more than Rs. 755 per lakh of loan amount, you should transfer your loan to another bank.
Home Loan Transfer Charges and Details
Interest Rate8.35% Onwards
Processing FeesNil to upto 1%
Loan TenureUpto 30 years
Lowest EMI per Rs. LakhRs. 755
Loan Transfer Process Time15 - 20 days
Banks with Lowest Interest RatesCitibank, DHFL, Dena Bank, PNB
Calculate Savings, Check Best Offers
Rs.
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Best Home Loan Transfer Offers in India, Compare home loan transfer rates of all banks

BankHome Loan Transfer RatesLoan Transfer Processing FeesLowest EMI per lakh
SBI Home Loan Transfer8.50%0.50%
Min Rs. 10,000 - Max Rs. 10,000
Rs. 769 for 30 Years
HDFC Home Loan Transfer8.40%0.50%
Min Rs. 10,000 - Max Rs. 10,000
Rs. 762 for 30 Years
ICICI Bank Home Loan Transfer8.45%1.00%
Min Rs. 5,000 - Max Rs. 5,000
Rs. 765 for 30 Years
Axis Bank 8.40% NilRs. 762 for 30 Years
PNB Housing Finance 8.85%1.00%
Max Rs. 10,000
Rs. 794 for 30 Years
Bank of Baroda 8.45%0.50%
Min Rs. 7,500 - Max Rs. 20,000
Rs. 765 for 30 Years
LIC Housing Finance 8.50%0.50%
Rs. 769 for 30 Years
Indiabulls 8.40% Min Rs. 1,000 - Max Rs. 5,000 Rs. 862 for 20 Years
Citibank 8.35% Min Rs. 10,000 - Max Rs. 10,000 Rs. 795 for 25 Years
DBS Bank 9.15% Max Rs. 10,000 Rs. 909 for 20 Years
DHFL 8.35%0.50%
Min Rs. 2,500 - Max Rs. 20,000
Rs. 758 for 30 Years
Kotak Bank 8.40% Max Rs. 10,000 Rs. 862 for 20 Years
Central Bank of India 8.45%0.50%
Max Rs. 20,000
Rs. 765 for 30 Years
DCB Bank 10.44%2.00%
Min Rs. 5,000
Rs. 994 for 20 Years
Edelweiss 10.50%0.25%
Rs. 944 for 25 Years
HSBC Bank 8.50%1.00%
Max Rs. 10,000
Rs. 805 for 25 Years
Karnataka Bank 9.50%0.25%
Min Rs. 250
Rs. 841 for 30 Years
Union Bank of India 8.30%0.50%
Max Rs. 15,000
Rs. 755 for 30 Years
Dena Bank 8.35%0.50%
Rs. 795 for 25 Years
Federal Bank 8.95%0.50%
Min Rs. 3,000 - Max Rs. 7,500
Rs. 801 for 30 Years
Indian Bank 11.75% NilRs. 1,084 for 20 Years
Karur Vysya Bank 9.10% Min Rs. 5,000 Rs. 846 for 25 Years
LT Housing Finance 9.90%2.00%
Min Rs. 4,999
Rs. 870 for 30 Years
Punjab and Sind Bank 8.40%0.25%
Min Rs. 1,000 - Max Rs. 15,000
Rs. 762 for 30 Years
South Indian Bank 9.00%1.00%
Max Rs. 10,000
Rs. 805 for 30 Years
United Bank of India 8.45%0.59%
Min Rs. 1,180 - Max Rs. 11,800
Rs. 765 for 30 Years
Bank of Maharashtra 8.65%0.50%
Rs. 780 for 30 Years
Corporation Bank 8.85%0.50%
Max Rs. 50,000
Rs. 794 for 30 Years
Dhan Laxmi Bank 9.65%1.00%
Min Rs. 10,000
Rs. 942 for 20 Years
GIC Housing Finance 10.25% Min Rs. 2,500 Rs. 982 for 20 Years
IDFC Bank 8.65% Min Rs. 2,500 - Max Rs. 2,500 Rs. 780 for 30 Years
Indian Overseas Bank 8.40%0.53%
Min Rs. 8,900 - Max Rs. 13,350
Rs. 762 for 30 Years
OBC 8.40%0.50%
Max Rs. 20,000
Rs. 798 for 25 Years
RBL Bank 10.30% Min Rs. 5,000 - Max Rs. 15,000 Rs. 930 for 25 Years
Standard Chartered Bank 8.55%1.00%
Min Rs. 5,000 - Max Rs. 10,000
Rs. 871 for 20 Years
Vijaya Bank 8.65%0.50%
Min Rs. 1,000 - Max Rs. 20,000
Rs. 780 for 30 Years
Canara Bank 8.65%0.50%
Min Rs. 1,500 - Max Rs. 10,000
Rs. 780 for 30 Years
IIFL 8.50%1.00%
Max Rs. 10,000
Rs. 769 for 30 Years
Jammu And Kashmir Bank 8.65%0.25%
Min Rs. 500 - Max Rs. 10,000
Rs. 994 for 15 Years
Lakshmi Vilas Bank 9.45%0.40%
Min Rs. 10,000 - Max Rs. 20,000
Rs. 929 for 20 Years
PNB 8.35%0.50%
Min Rs. 20,000 - Max Rs. 50,000
Rs. 758 for 30 Years
Reliance Capital 10.00%1.00%
Min Rs. 3,000 - Max Rs. 6,500
Rs. 878 for 30 Years
Syndicate Bank 8.55%0.13%
Min Rs. 500 - Max Rs. 5,000
Rs. 772 for 30 Years
Yes Bank 9.35%0.50%
Max Rs. 10,000
Rs. 1,035 for 15 Years

Based on the comparison of home loan interest rates of all banks in India, HDFC, Axis Bank, Indiabulls, Citibank, DHFL, Kotak Bank, Dena Bank, Punjab and Sind Bank, Indian Overseas Bank, OBC, PNB are the best banks to transfer your loan, given their current low home loan rates of 8.35% - 8.4%. These banks also give attractive top up home loans along with home credit facility if you decide to transfer your loan.

Home Loan Transfer

Home loan are long tenure loans of up to 30 years and hence, you are bound to spend a large amount your income in servicing it. Home loan interest rates matters as more than 50% of your home loan EMI component is home loan interest amount you pay to the bank during the loan tenure. The current interest rates on home loan ranges from 8.35% to 11.75% with a lowest EMI of Rs. 755 per lakh. You should seriously consider transferring your home loan to another bank, if you feel that interest rate and EMI you are paying on your existing loan is higher than the lowest rate and lowest EMI offers in the market.

Ideally, the benefit of home loan transfer is in the initial 4 to 5 years of loan as you pay the highest interest component in the initial years. Loan transfer in the mid or end of the tenure can work against you financially as you had already paid the higher interest part to the lender. So, before you decide to opt for balance transfer, do a thorough analysis of all savings and costs associated with the transfer of loan

What are the benefits of transferring house loan to a new bank?
  • Reduction in interest rate from high rate to as low as 8.30% per annum
  • Reduction in monthly EMI by upto 5% depending upon the rate difference, balance tenure and EMI
  • Option to avail top up loan at same rate as home loan rate (8.30% to 8.8%) subject to eligibility conditions and loan to value ratio
  • Lower interest rates and other discounts like nil processing fee offered by another lender
  • Option to opt for smart saver home credit facility or maxgain facility to save interest
  • Balance transfer options available at various banks like SBI, Bank of Baroda, HDFC, ICICI and others

Home Loan Transfer Process

Must watch if you are paying more than the lowest interest rate of 8.35% on your home loan

What are the eligibility criteria for housing loan transfer to new lender?

You can opt for home loan balance transfer if you have outstanding home loan in one bank. Basic eligibility criteria are age, income, employment history and loan to value ratio. Other main eligibility factors which are important for balance transfer are -

  • Applicant must be running an existing home loan from another lender
  • Some lenders may require that an applicant should have paid at least 6 to 12 EMI’s on existing loan before opting for balance transfer. However, at times, this condition may be waived and home loan takeover may be possible even if the loan has not run for 6 – 12 months
  • There should not be any default in payment of EMI on existing loans
  • In case of under construction property, the project must be approved with the new lender. Note that balance transfer of home loan on new property whose possession has been handed over but registration has not been done may not be possible
  • In case of ready property, registration should have been completed

Home Loan Balance Transfer Process

Follow the below simple steps on how to transfer your loan from bank to another

  • Check your current rate and calculate interest savings
  • Calculate the estimated cost on account of various fees and charges as given above
  • Shortlist new bank that you wish to transfer your loan to; decide if you want top up loan or not Obtain list of property documents deposited with your existing bank (in case this is not available with you already) and foreclosure letter from existing bank
  • Apply for loan with new bank with photocopy of property documents as per list of property documents with existing bank
  • Obtain sanction letter and execute new loan agreement
  • Take disbursement from new bank by way of cheque/ demand draft in favor of existing bank and also deposit the same
  • Obtain property documents from old bank and deposit with new bank

Home Loan Transfer Charges

Charges to transfer your home loan can be different depending on your existing bank, the new bank as well as the state of transfer. Key charges for loan transfer include foreclosure charges to be paid to your exisitng bank, processing fees , title deed charges and other incidental charges. are:

  • Foreclosure charges payable to existing bank for take over of fixed rate home loans. In case of floating rate home loans, banks are not allowed to take any fees to foreclose your loan.
  • Processing fees on transfer may range from a flat fee Rs. 10,000 to up to 1% of the loan amount. However, banks offer discounts on processing fees from time to time and you must for attractive offers with marketplaces like MyLoanCare to get the most suitable loan offer for you.
  • MODT (Memorandum of Deposit of Title Deed) charges of 0.2% to 0.5% on mortgage payable in some places including Mumbai, Pune, Maharashtra, Chennai, Tamil Nadu, Bangalore, Karnataka, Hyderabad, Telangana and Rajasthan among others. No such stamp duty is payable in places in Delhi, Gurgaon, Haryana, Noida, Uttar Pradesh
  • Incidental charges such as SRO registration payable in Mumbai, Pune and other parts of Maharashtra

Home Loan Balance Transfer Calculator

With MyLoanCare Home Loan Balance Transfer Calculator, you can calculate your loan amount eligibility and also identify offers with lower home loan rates compared to your existing home loan rates. Do complete market research before you choose the bank to transfer your loan to and apply for a balance transfer in terms of current interest rates, processing fees offers, home loan top up schemes from various banks, movement in MCLR rates of the new bank in response to policy rate changes as well as customer reviews of the bank.

How do I avail the best home loan transfer offer

  • Check interest rate track record of the new lender

    You must check that the lower interest rate being advertised by the new lender is real and not a shot term gimmick. Please ask your loan advisor for the benchmark rate track record of the new lender.

  • Satisfy yourself about service quality of the new lender

    Check that the service quality offered by the new bank you are choosing is up to your expectations. Lower rate should not come at the cost of inferior service.

  • Check the benchmark rate

    There are two commonly used benchmark rates for home loans – MCLR rate in case of banks and prime lending rate (PLR) in case of housing finance companies. MCLR benchmarked loans are known to be more transparent and hence preferable over PLR benchmarked loans.

  • Is the spread variable or fixed

    Interest rate on floating rate loans consists of two parts – benchmark rate and spread above it. While the benchmark rate is expected to change over time, the spread is supposed to remain constant except in case of a default. However, some banks offer floating rate loan with both the benchmark and the spread being variable. In case of many such loans, borrowers see their loan interest rates rise sharply after a few months. So, avoid loans with variable spreads and instead opt for floating rate loans that vary interest rate only with change in the benchmark rate.

  • Estimate transaction cost

    Check the cost that you will incur for effecting the change. These include processing fees, stamp duty (in some states like Maharashtra) and documentation charges.

  • Issue notice to existing bank

    Some banks insist on a prior notice before you can prepay your home loan. Check your loan agreement carefully and ensure that due notice is given to or waived by your existing bank.

How do I transfer my loan for an under construction property?

The process to transfer home loan on under construction property is similar as that of of ready to move property. However, in case on under construction property, you need to take care of few additional points:

  • Check loan eligibility as per new bank

    Cost of property consists of multiple heads such as basic price, preferred location charge (PLC), external development charges, internal development charges, security deposit, electrification charges, power back-up charges, service tax, fire fighting charges etc. Norms for inclusion of each cost head differ across lenders. In case your chosen new bank does not include some of the heads in the cost of property which were included by the old bank, the loan eligibility may come down and you may need to increase your own contribution.

  • Select the right time to do the loan transfer

    The process of loan transfer may take 10-15 days from the date of application and your existing bank may typically take another 10-20 days to handover property documents to the new bank. You will not be able to avail further loan disbursements during this period. Hence, it is important you time the transfer of your loan at a time when you don’t expect any fresh demand from the builder for the next month or so.

  • Get fresh Permission to Mortgage and Tri-partite agreement

    A builder will need to issue a fresh permission to mortgage (PTM) to the new bank and enter into a new permission to mortgage. This typically takes no more than 2-5 days but borrowers must check with the builder.

In summary, balance transfer is beneficial to borrowers as it helps reduce cost of borrowing significantly. Home buyers and home loan borrowers must exercise caution in the process of balance transfer so that the process is smooth.

Documents Required for Home Loan Transfer

Additional Documents for Loan Takeover / Transfer
SalariedSelf Employed
Loan statement (loan track) and list of property documents (LOD) in possession of existing lender
Last 12 months' statement of bank account from which loan EMI is paid
Application Form and KYC
Salaried Self Employed
Application Form with photo and signed by Primary Borrower and Co-borrower(s)
Identity Proof of Primary Borrower and Co-borrower(s)
Residential Address proof of Primary Borrower and Co-borrower(s)
Age Proof of Primary Borrower and Co-borrower(s)
Office address – ownership/ lease / rent agreement/ utility bill
Income Proof
SalariedSelf Employed
Last 3 years’ Form 16, last 6 months salary slip, last 6 months’ bank account statement showing salary credit
Last 3 years ITR (self and business), profit and loss account, balance sheets certified/audited by a CA. Last 12 months bank account statement (self and business)
Certificate and Proof of Business Existence
Business Profile

Frequently Asked Questions on Home Loan Takeover

What is the maximum limit for the transfer of amount?

The maximum amount to be transferred is equal to the outstanding amount. However, you may avail top up loan such that the total loan including home loan and top up does not exceed 75% of market value of the property.

When should I avail the house loan balance transfer?

In case you are paying higher interest rate than those available in the market and the difference is more than 0.5%, you may consider transferring your loan.

When should I not consider transfer ing my home loan?

You must not switch if one of the following situations is applicable:-

  • Prepayment penalty is payable to current bank – this is valid in case of fixed rate loans
  • You plan to sell the property in the near future
  • The balance period of your existing loan is less than 2 years
What are the home loan transfer charges?

At the time of housing loan transfers to new bank, you will need to apply afresh for home loan. Applicable charges include processing fee (unless waived by the bank), stamp duty (ranges from nil to 0.5% of the loan amount depending on the state ion which the property is located), valuation charges (chargeable in some banks) and lawyer’s fee (chargeable in some banks).

Can repayment period be extended at the time of transfer?

Yes, repayment period can be extended up to the maximum tenure allowed by the new bank subject to the condition that the borrwoer’s age at the end of the loan tenure must not exceed 58 or 60 years in case of salaried borrowers and 65 or 70 years in case of self employed borrowers.

Can I get a top up loan at the time of balance transfer?

Based on your eligibility, the lender can offer you top up on the home loan to be transferred to the new bank but there may be processing and legal charges applicable.

Do I require a guarantor for home loan transfer?

Most of the banks do not require a guarantor for taking over an existing home loan.

Is it possible to merge two existing loans through balance transfer?

Yes, it’s possible to merge two existing loans into a single loan with to get lower interest rates.

How much time will it take to transfer my house loan from existing bank?

It might take around 15-20 days for the house loan to be transferred to the new bank.

Home Loan News - Apr 2018
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