Are you currently repaying a home loan but facing difficulties with the bank? Consider transferring your home loan to another bank to address these issues. Let’s explore how you can do this.
If you’ve taken a home loan from a bank and are experiencing challenges with high interest rates or other issues, you can transfer your loan to another bank.
For instance, if you have a Rs 30 lakh home loan with XYZ Bank at a 9% interest rate, you can switch your loan to ABC Bank if they offer a lower interest rate.
This transfer not only helps you save money but also provides a potential for significant savings, making it a promising option. However, it’s important to remember that you must repay the loan to the new bank.
Here’s how the process works: To transfer your loan, select a new bank to pay your new Equated Monthly Installment (EMI). You can save on interest if the new bank offers a lower EMI.
To begin the transfer process, you should apply for loan foreclosure with your current bank, collect your account statement and property documents, and submit them to the new bank.
Obtain a No Objection Certificate (NOC) from your current bank, which you must submit to the new bank along with the other paperwork. Additionally, you must pay a processing fee of 1 percent to transfer the loan to the new bank.
The new bank will require the following documents: KYC papers, property papers, loan balance sheet, interest papers, application form, and a consent letter for the new bank.
Once these steps are completed, the new bank will receive the NOC from your old bank, close the loan, and enter into an agreement with you. You will then need to pay the bank fees, and your EMI payments will begin with the new bank.