NRI Home Loan Balance Transfer

If you possess an existing outstanding house loan with an individual lender, you can make a home loan transfer without problems. That is, you can transfer the outstanding loan amount to a new lender who charges a lesser rate of interest from you. This course of action is acknowledged as home loan balance transfer or balance transfer or refinancing.

The Home Loan Balance Transfer service assists a customer in avoiding towering applicable interest rates of one house loan lender and transfer the home loan to a lesser interest rate structure with a new lender.

At some stage in a house loan balance transfer, you will have to ask for all the refinance loan papers that you had by now put forward to your current lender. As soon as you get the consent letter, put all documents forward along with the consent letter to the new lender. Hereafter, the entire loan repayments will have to be settled with the original lender, and the previous account will be blocked.

So, to recapitulate and go over the main points, Home Loan Balance Transfer is a route where a home loan is paid off using a different loan. By and large, borrower conveys the balance of an accessible home loan to a new bank by applying for a home loan Balance Transfer with them. This is done to benefit from reduced rates of interest. Moreover, here are all your queries regarding the Home Loan Balance Transfer resolved.

How to apply for NRIs Home Loan Balance Transfer?

To apply for NRIs Home Loan Balance Transfer, you should tag along with the steps mentioned below:

• Appeal your present lender for the papers required to refinance the loan.
• After the lender makes a consenting letter together with the outstanding loan amount available to you, these papers will have to be presented to the new lender you hope to refinance your loan with.
• After that, the new lender will transmit the outstanding amount to the previous lender.
• The previous loan account will be closed at this time, and all prospective costs will set off towards the loan you have availed with the original lender.
• Subsequently, the previous lender would turn over all the property papers to the new lender, on the record carrying out the refinancing process.

What are the best banks options for Home Loan Transfer for NRIs?

Here are the three leading players in the home loan sector that offer interesting Home Loan Transfer options for NRIs.

• ICICI Bank

India’s leading private sector bank, ICICI broadens home finance and Home Loan Transfer options to NRIs who are on the lookout for buying a house, construction, buying a plot and for other housing-related requirements.

• Axis Bank

As one of the most important private sector bank in India, Axis bank provides made to measure home loan schemes for NRIs to help them realize their dream of possessing or constructing a home and more.

• State Bank of India

The banking epic, SBI is India’s leading organization working in the banking sphere. True to its size, the bank presents an overabundance of home loan choices to NRIs based on particular requests such as purchase, construction and reconstruction.

What types of extra benefits will NRI avail after Home Loan Transfer?

• Your Home Loan Transfer to another lender may lower your payable EMI (Equated Monthly Installment)
• The rate of interest on your home loan can trim down in the event you decide to transfer your home loan to a new bank.
• There is a possibility of your credit score rising on transferring your home loan
• The terms of the home loan can be discussed and negotiated in due course, and you can select the lender that suits your requirements the best
• The tenure of the home loan can be chosen to decrease, allowing you to save a lot on the entire payable interest
• Also, you can pick a bank that provides improved customer service than the bank that is servicing you at present

How does NRIWAY implement Home Loan Transfer?

NRIWAY lets you implement Home Loan Transfer in a stress-free and straightforward way by integrating up-to-the-minute technology into the complete processes.

How do I know if I will benefit from a home loan transfer?

In essence, the home loan balance transfer is done to lower the rates of interest. For the most part, it helps you avail improved service from the bank ready to take over the house loan. When the house loan is taken over by a different bank, the present bank transfers the outstanding principal sum to the new bank.

What are Eligibility Criteria & Features for NRIs to Transfer Home Loan Balance?

When deciding to move your presented home loan to another bank, take care of the following requirements:

• The applicant’s age should not be lesser than 21 years and not more than 60 years all through the application process. The latter is 65 years for Self-Employed Persons.
• The applicable loan sum is based on more than a few issues, together with, the age of the applicant, present income, number of co-applicants, arrears, the retirement age of the applicant, and so on.
• The applicant has got to have an apparent history of 12-18 months worth of continuous repayments on his/her existing home loan.
• The applicant is obliged to have the work experience of at least two years, with the last one year spent in the present organization. For self-employed persons, the expectation usually is two years in a similar line of work with the filing of the mandatory ITR.
• Besides, few banks might need a specific gross family income and a clear credit history, minus any red flags and the CIBIL score of a minimum of 700 points.

What are essential documents required for NRIs to Transfer Home Loan Balance?

You should carry along the following essential documents each time you approach your potential lender with regards to the home loan balance transfer.

• Completed Application form
• Self-attested photographs of the applicant
• Identity proof (can be any government issued identification- PAN Card, Voter’s ID and the like)
• Residential address proof
• Age Proof (PAN Card, Voter’s ID, 10th or 12th Marks Cards, and all that)
• Authorized Address (Applies for self-employed, can be rent contract, utility bills, lease and the rest)
• Income Proof under the provision of past six months bank account statements that demonstrate income credit, salary slips of last six months as well as the previous three years’ Form-16 accounting.

For Self-Employed persons, the income proof is recognized by-

• Last three years ITR (self as well as business)
• Previous 12 months bank account statement (self as well as business),
• Profit and Loss Account
• Balance Sheets that are methodically audited by a licensed CA
• Comprehensive Business Profile along with the Proof of Business Existence
• Last 12 months Bank statements of the account from where the home loan EMIs were abstracted

What are the fees applicable for Home Loan Transfer Process?

At times, it can be simple to overlook costs that are connected with Home Loan Transfer Process. You are carrying on the Home Loan Transfer Process to save money. If the expenses like stamp paper, document charges, processing cost, and so forth prevail over the savings you obtain, it turns out to be unreasonable to carry out the Home Loan Transfer Process.

Frequently Asked Questions (FAQs)

I have one year left on my home loan, is it wise to switch so late in the loan tenure?

Kindly make inquiries with the bank for information about this! Most of the banks put forward the choice of switching between fixed and floating that might come with a price that’s charged on the outstanding amount.