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

Last Updated 23rd Oct 2017

Home Loan Balance Transfer India

  • Home loan balance takeover options starting @ 8.35%
  • Save interest. Reduce 48 EMI's or save EMI’s upto 5%
  • Top-up loans at 8.35% - 8.6%; use for paying down other expensive loans or personal use
  • Home loan balance transfer available on ready / under – construction property
  • Check the best offers available in the market and transfer your loan
  • Avail flexi saver home credit facility from Citibank, SBI, IDBI Bank, Axis Bank, DBS Bank and pay interest on net difference on your loan outstanding and bank balance
Calculate Savings, Check Best Offers

Compare home loan balance transfer rates and offers

Bank Home Loan Balance Transfer Rates Lowest EMI per lakh for Max Tenure
SBI Home Loan 8.35% - 8.55% Rs. 758 for 30 Years
HDFC Home Loan 8.35% - 8.95% Rs. 758 for 30 Years
ICICI Bank Home Loan 8.35% - 8.85% Rs. 758 for 30 Years
Axis Bank 8.35% Rs. 758 for 30 Years
PNB Housing Finance 8.50% Rs. 769 for 30 Years
Bank of Baroda 8.35% - 9.35% Rs. 758 for 30 Years
LIC Housing Finance 8.50% - 8.90% Rs. 769 for 30 Years
Indiabulls 8.35% - 9.75% Rs. 758 for 30 Years
Citibank 8.50% - 8.60% Rs. 805 for 25 Years
DBS Bank 8.60% - 8.85% Rs. 874 for 20 Years
DHFL 8.60% - 9.75% Rs. 776 for 30 Years
Kotak Bank 8.60% Rs. 874 for 20 Years
Karur Vysya Bank 9.10% Rs. 846 for 25 Years
OBC 8.45% - 8.55% Rs. 802 for 25 Years
Karnataka Bank 9.50% - 9.75% Rs. 841 for 30 Years
Jammu And Kashmir Bank 8.65% - 9.00% Rs. 994 for 15 Years
Central Bank of India 8.50% Rs. 769 for 30 Years
Vijaya Bank 8.65% Rs. 780 for 30 Years
LT Housing Finance 9.90% - 10.75% Rs. 870 for 30 Years
Deutsche Bank 9.45% Rs. 929 for 20 Years
Edelweiss 10.50% - 10.90% Rs. 944 for 25 Years
IIFL 8.50% Rs. 769 for 30 Years
Corporation Bank 8.85% - 9.10% Rs. 794 for 30 Years
PNB 8.35% - 8.45% Rs. 758 for 30 Years
City Union Bank 9.90% - 11.60% Rs. 1,069 for 15 Years
South Indian Bank 9.10% Rs. 812 for 30 Years
Lakshmi Vilas Bank 9.55% Rs. 935 for 20 Years
Dena Bank 8.55% - 8.80% Rs. 809 for 25 Years
United Bank of India 8.55% Rs. 772 for 30 Years
Repco Home Finance 9.60% - 11.50% Rs. 939 for 20 Years
RBL Bank 10.30% - 11.65% Rs. 930 for 25 Years
HSBC Bank 8.65% Rs. 815 for 25 Years
GIC Housing Finance 10.25% Rs. 982 for 20 Years
Indian Bank 8.50% - 8.60% Rs. 868 for 20 Years
Development Credit Bank 10.48% - 11.35% Rs. 997 for 20 Years
Tamilnad Mercantile Bank 10.30% - 10.80% Rs. 900 for 30 Years
Bank of Maharashtra 8.70% - 8.80% Rs. 783 for 30 Years
Punjab and Sind Bank 8.75% - 9.00% Rs. 787 for 30 Years
Yes Bank 9.35% - 10.50% Rs. 863 for 25 Years
Standard Chartered Bank 8.55% - 8.65% Rs. 871 for 20 Years
Reliance Capital 10.00% - 11.75% Rs. 878 for 30 Years
Indian Overseas Bank 8.65% - 9.15% Rs. 780 for 30 Years
Syndicate Bank 8.75% Rs. 787 for 30 Years
Dhan Laxmi Bank 10.10% - 10.35% Rs. 972 for 20 Years
Federal Bank 9.00% - 9.25% Rs. 805 for 30 Years
Canara Bank 8.65% - 8.75% Rs. 780 for 30 Years
Union Bank of India 8.30% - 8.35% Rs. 755 for 30 Years
IDFC Bank 8.55% - 8.60% Rs. 772 for 30 Years

What is the interest saving in EMI by transfer of home loan to another bank?

The exact reduction in EMI varies based upon

  • Existing rate of interest being charged by your bank
  • Outstanding principal amount
  • Your current EMI
  • Rate of interest currently available from new bank

What are the benefits of transferring house loan to a new bank?

  • Reduction in interest rate from high rate to as low as 8.35% 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 (8.35% to 8.85%) subject eligibility conditions and loan to value
  • Lower interest rates and other discounts 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

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

  • 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

What are the home loan balance transfer charges?

Various costs and fees associated with transferring a loan vary from case to case and from state to state. Main charges and fees that you just factor in the calculation of savings are:

  • Foreclosure charges payable to existing bank in case of fixed rate home loans. No charges are payable in case of floating rate home loans
  • Processing fees and administrative fees of new bank. These may range from a flat fee of say, Rs. 10,000 to up to 1% of the loan amount. However, banks offer discounts on fees from time to time and you must check the offers available in the market with MyLoanCare
  • 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

What is the process for home loan takeover?

Follow the below simple steps to transfer your loan:

  • 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

What are the precautions to be taken when transferring home loan?

  • 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.

Are there any additional precautions when availing home loan balance transfer on under construction property?

In case the property whose loan you are transferring is still under construction by the builder, some additional points must be taken care of:
  • 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

Our 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 List for Home Loan Transfer

Additional Documents for Loan Takeover / Transfer

Salaried Self 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

Salaried Self 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

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 transferring 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 costs incurred during the transfer?

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.

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 better 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 Balance Transfer
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