Bombay (Maharashtra) [India], Sep 20 (ANI/BusinessWire India): Tata Capital’s home loan offering, popular for its low interest rates and simple application process, also provides a seamless home balance transfer process. You can now transfer your home loans from other financial institutes to Tata Capital without much hassle. If your current home loan carries a higher interest rate, you can easily switch lenders by opting for a home loan balance transfer. A balance loan transfer allows you to transfer the existing loan from one bank to another for better interest rates and loan terms. Not to mention, it has become a convenient and affordable option since RBI removed foreclosure penalties. According to RBI guidelines, lending institutions cannot impose penalties on individuals for foreclosing or prepaying home loans with floating interest rates. Previously, borrowers avoided prepaying a loan due to higher prepayment charges. But now, this guideline allows borrowers to take advantage of lower interest rates offered by other lenders by opting for a home loan balance transfer. Hence, reducing your EMIs and making your home loan much more affordable. Should you opt for a loan balance transfer? What are the factors to consider? Benefits of Home Loan Balance Transfer

The main reason most people opt for a home loan balance transfer is for a lower interest rate. If by any chance the interest rate drops and a lender is potentially willing to offer a reduced interest rate for the home loan, you should consider switching lenders. More benefits are detailed below. Take Advantage of Lower Interest Rates The most obvious benefit and one of the main reasons people choose balance transfer is lower interest rates. If your current loan carries a higher interest rate even under favorable market conditions, a loan balance transfer is a way to go. Of course, the interest rates offered on the new loan will depend on your credit profile and eligibility.

Besides, you can also benefit from attractive interest rates if your credit rating has improved during the term of the loan. This way, you will have to bear lower interest on the remaining loan, and your EMI also decreases. Ask for better home loan terms A home loan balance transfer also gives you the opportunity to review the terms of your home loan and change lenders if you are not satisfied. For example, if your current lender charges you a higher prepayment penalty, or if you want to switch from fixed interest rates to floating interest rates to avoid foreclosure fees, a loan balance transfer can help you. help move to better loan terms. Modify the term of the loan

When applying for a loan, you need to consider your income, financial obligations, interest rates offered and more to choose the right loan term. But over time, your current tenure may no longer suit you. Maybe your financial obligations have increased and you want to pay lower EMIs, or you received a large bonus. Either way, refinancing a home loan or balance transfer allows you to reassess the term of your loan to make repayment more affordable. Obtain an additional loan

If you need more funds to finance your new home, you can take out an additional loan when you opt for a home loan balance transfer. Most lenders offer an additional loan facility at attractive interest rates on top of your existing loan. Enjoy Better Customer Service Better customer service is another benefit you can enjoy with a home loan balance transfer. For example, your current lender may not offer 24/7 customer service, or you may not be able to manage your home loan through their website or app. Either way, you can switch to a better serviced lender by refinancing your loan. Factors to Consider When Choosing a Home Loan Balance Transfer

A few things to consider before transferring your home loan to a new lender. 1. Credit score

When you request a home loan balance transfer, the lender will check your credit report to assess your creditworthiness before sanctioning the loan. If you have maintained a good credit rating with timely EMI payments, you can easily negotiate with the new lender for lower interest rates. However, an inconsistent EMI payment history can lower your credit score and hinder your chances of qualifying for home loan balance transfer. 2. Cost of refinancing

Most people just choose home loan refinancing to get better interest rates. However, this is not the only key factor affecting the cost of your loan. In addition to lower interest rates, consider other fees such as loan processing fees, prepayment fees, foreclosure fees and many more offered by the lender. If the cost of refinancing is lower than the costs of your current loan, it is best to move forward. 3. Conditions of the new mortgage

You should carefully read the terms and conditions of your new loan to avoid hidden fees or unfavorable loan conditions. This story was provided by BusinessWire India. ANI shall in no way be responsible for the content of this article. (ANI/BusinessWire India)

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